Which of the following are types of oil and gas direct participation programs might be considered the riskiest?

Which of the following are types of oil and gas direct participation programs might be considered the riskiest?

DIRECT INVESTMENT PROGRAMS

Diversify Your Portfolio With Private Equity Real Estate

Unlock access to institutional quality properties that are typically out of reach for individual investors — along with the potential tax and cash flow benefits that come with them.

Which of the following are types of oil and gas direct participation programs might be considered the riskiest?

Direct ownership Benefits

Direct investment programs use pooled investment structures to give you direct ownership benefits of real estate assets, typically in the form Limited Partnership Interests or Units within an LLC.


As a limited partner, you receive revenues, but your potential losses and liabilities are limited to the amount you invested. Meanwhile, a general partner manages the investment and keeps you from having to participate in everyday operations and decisions.

We’ll help you explore the benefits

Potential appreciation

Direct investment programs increase geographic reach, giving you access to more growth markets throughout the country.

Potential income

Funds are typically delivered to you on a *quarterly or monthly basis, which means your investment has the potential to generate passive income.

Portfolio diversification

With traditional assets like stocks and bonds dominating real estate portfolios, direct investment programs offer an alternative that can potentially mitigate risk.

Low investment minimums

You get access to funds that purchase hundreds of millions or even billions of dollars worth of real estate assets, with investment minimums as low as $25,000.

Tax advantages

Most real estate funds or investments will pass through expenses like depreciation, which you can use to shelter some or all of your income distributions.

And we’ll walk you through the risks

Typically Illiquid Structure

There is no secondary market for direct investment programs, and withdrawals are either limited or unavailable. You’ll need to keep your money invested for 5-10 years or longer, typically until the investment liquidates and distributes your money back to you, plus any gains not previously paid out.

Subject to Market Risk

Although real estate direct investment programs are not directly impacted by the traditional stock or mutual funds market, they are subject to changes in the economy, like inflation and recession, that negatively affect the real estate market.

Involves Speculation 

Direct investment programs are speculative in nature and heavily reliant on the assumptions used by investment sponsors, which may prove to be inaccurate.

Suitability Considerations

Direct investment programs are only suitable if you meet certain income and net worth criteria, can support the illiquid nature of the program, and can sustain the total loss of your investment.

Find out if a direct investment program is right for you

We’ll talk through your circumstances, your goals, and your questions so that you can make the most informed decision about your next investment. Fill out the form below or give us a call, and you’ll hear back from us within 1 business day.

DISCLOSURE

This website is for informational purposes only. This website does not provide investment advice or recommendations, nor is it an offer or solicitation of any kind to buy or sell any investment products. Securities offered through Stax Capital, Member FINRA & SIPC. Stax Capital is located at 7960 Entrada Lazanja, San Diego, CA 92127. Contact us toll free at 844-427-1031. Private Placements and Direct Participation Programs are speculative investments and involve a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in Private Placements and Direct Participation Programs. Private Placements and Direct Participation Program offering materials are not reviewed or approved by federal or state regulators. Investors should not place undue reliance on hypothetical or pro forma performance summaries. Investors must conduct their own due diligence and should rely on the advice of their own financial, tax and legal advisors prior to making any investment decisions.

The contents of this website are neither an offer to sell nor a solicitation of an offer to buy any security which can only be made by prospectus. Investing in real estate and 1031 exchange replacement properties may not be suitable for all investors and may involve significant risks. These risks include, but are not limited to, lack of liquidity, limited transferability, conflicts of interest and real estate fluctuations based upon a number of factors, which may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover. Investors should also understand all fees associated with a particular investment and how those fees could affect the overall performance of the investment. Neither Stax Capital nor any of its representatives provide tax or legal advice, as such advice can only be provided by a qualified tax or legal professional, who all investors should consult prior to making any investment decision. Pursuant to SEC rule 501 of Regulation D, prior to engaging in substantive discussions regarding DST specific investments, investors must first be qualified as an accredited investor, by way of meeting certain income or net worth requirements.

Past performance is not an indication of future returns.

This site may contain forward-looking statements relating to the objectives, opportunities, and the future performance of the U.S. market generally. Forward-looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of any particular investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio’s operations that could cause actual results to differ materially from projected results. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward-looking statements. Prospective investors are cautioned not to place undue reliance on any forward-looking statements or examples. None of Stax Capital or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.

There are substantial risks in the DST Investment program. This type of investment is speculative, is illiquid, and carries a high degree of risk – including the potential loss of the entire investment. See the “risk factors” in the Private Placement Memorandum for a complete discussion of the risks relevant to DST offerings. Investors have no control over management of the Trust or the property. There is no guarantee that investors will receive any return. Distributions may be derived from sources other than earnings. The property will be subject to a Master Lease with an Affiliate of the Sponsor. The property will be subject to the risks generally associated with the acquisition, ownership and operation of real estate including, without limitation, environmental concerns, competition, occupancy, easements and restrictions and other real estate related risks. The properties may be leveraged. The Manager, the Master Tenant and their Affiliates will receive substantial compensation in connection with the Offering and in connection with the ongoing management and operation of the property. The Manager, the Trust, the Master Tenant and their Affiliates will be subject to certain conflicts of interest. An investment in the Interests involves certain tax risks.

What are types of oil and gas direct participation programs?

Types of Direct Participation Programs The most common DPPs are non-traded REITs (about two-thirds of the DPP market), non-listed business development companies (BDC) (which act as debt instruments for small businesses), energy exploration and development partnerships, and equipment leasing corporations.

Which of the following oil and gas direct participation programs might be considered the riskiest quizlet?

Exploratory programs, also called wildcatting programs, are those that look for resources near existing producing wells in the hopes of finding more deposits. These are considered riskiest of the oil and gas programs—exploratory, income or a combination of the 2.

Which of the following oil and gas direct participation programs would not involve drilling?

The correct answer was: depletion. In an income program, the partnership is buying producing oil and gas wells. There are no drilling costs involved in these programs.

Which of the following are types of real estate direct participation programs?

Types of Direct Participation Programs Non-traded real estate investment trusts. Non-listed business development companies. Energy-related projects. Equipment leasing companies.