Royalty owners carry no liability for the properties where oil and gas is produced or explored.

There are no expenses associated to owning producing mineral rights. 

Royalty owners receive a 15% tax deduction on all income received from royalties. 

Royalty owners hold title to the assets which are recorded, like a land deed, in the county courthouse. Owners of undivided interests in royalty properties are not locked into an ownership structure that links them to other investors in the same property. Each owner independently owns their interest and is free to hold or sell that interest at their time and discretion. They are "exclusive". 

Investors in oil and gas drilling programs or tenant-in-common real estate offerings bear the risk of future capital calls. Royalty owners do not face this risk.

Cash flow from multiple producing wells and potential future production is inherently a more diverse investment than owning a single property. In addition, investing into producing oil and gas assets can help investors from being over-concentrated in traditional real estate or the stock market.

Royalty ownership is a 1031-Exchange alternative that allows investors to defer capital gains tax. Oak Tree can help sellers of any type of real estate to reinvest all or a portion of their proceeds into Royalty Interests. Whether you need $100,000 or $5,000,000 worth of replacement property, we can carve out the exact interest that fits your exchange.