MB 255: Opportunities in Oil for Passive Investors – With Bob Burr
As a passive investors, we understand the importance of building a diverse portfolio. And while multifamily is the best investment on the planet, it doesn’t hurt to explore our options, especially when BIG opportunities present themselves. So, what are the opportunities in oil right now? And how do we choose a project that is likely to succeed?
Bob Burr is the driving force behind Burrite, an investment firm that focuses on the acquisition and consolidation of oil and gas properties. A 47-year veteran of oil and energy finance, Bob is dedicated to helping the industry bounce back from the COVID crisis by providing the bridge capital necessary to weather the current economic storm. Bob is currently raising money for the BR Dome property, a project that involves recompleting 247 existing wells with room for 200 more.
On this episode of Apartment Building Investing, Bob joins cohost Garrett Lynch and me to explain how he set himself up for buying opportunities when oil prices dropped and share the tax advantages of investing in oil. He walks us through the parallels between multifamily and oil, discussing the importance of putting together an experienced team that can identify and operate value-add projects. Listen in for Bob’s insight on why a passive investor should consider adding oil to their portfolio (even in the Biden era) and find out how YOU can get Bob’s Q&A video by shooting an email to [email protected].
Key Takeaways
Bob’s extensive background in the oil business
- Started with brother in 1973
- Funding projects through syndication
How Bob set himself up for buying opportunities in COVID
- People leave business as price of oil went negative
- Buy cashflowing wells and wait for cycle to go up
Bob’s BR Dome project in Houston
- 247 existing wells with room for 200 more
- Note offering with interest rate of 10% to 18%
What Bob does to attract and maintain a strong team
- Take care of people in loving business culture
- Make it rule to thank team every day
The lessons Bob has learned through many market cycles
- Maintain integrity in relationship with partners
- Weather storm, make $ when cycle comes back
Bob’s insight on buying undervalued assets
- Pick cashflowing wells not being run efficiently
- Reduce lifting cost to $3.50/barrel
How it works to invest in an oil project
- Operator leases mineral rights from landowner
- Operator and investors get 75% of net revenue
Why Bob is optimistic about oil in the Biden administration
- Shutdown of fracking doesn’t impact his business
- Still make good money at oil price of $25/barrel
The parallels between investing in oil and real estate
- Make money by adding value with good operator
- Tax advantages (write-off up to 90% passive loss)
Why a passive investor should add oil to their portfolio
- 65% shot at making well from good prospect
- BR Dome = 90% shot (cherry pick best spots)
How to learn more about investing in Bob’s oil projects
- Email [email protected]
- Request Q&A video
Connect with Bob Burr
Email [email protected] for a link to Bob’s Q&A Video
Resources
Learn More About Michael’s Mentoring Program
