Palisade Energy Investment

Go From Real Estate Tycoon to an Oil Magnate

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Let's break it down super simply, comparing multifamily real estate and the Palisades Energy oil & gas project over three years.

### Multifamily Real Estate Investment (3 Years):

1. Investment: You put in $100,000.

2. Return: Multifamily real estate typically gives you around 8-12% per year.

- In three years, at 10% annual return, your total would grow to about $133,100.

- That’s $33,100 in profit over three years.

3. Cash Flow: Real estate gives you monthly rental income, but most of the returns come from rent appreciation and property value growth.

4. Tax Benefits: You get depreciation and other tax deductions, but they spread out over 27.5 years, so the immediate tax reduction isn’t huge.

### Palisades Energy Oil & Gas Project (3 Years):

1. Investment: You put in $100,000.

2. Return: The Palisades project estimates a 4.4x to 5.8x return in five years. After three years, the return target is at least 2x (i.e., $200,000 or more).

- You would have doubled your money in three years.

- Profit: $100,000 or more, compared to $33,100 in real estate.

3. Cash Flow: After the third year, you start receiving monthly cash distributions from the producing oil wells, which could continue for up to 50 years.

4. Tax Benefits: You can deduct up to 100% of your investment in the first year (due to Intangible Drilling Costs). This means you can potentially save $40,000-$50,000 in taxes in the first year alone (depending on your tax rate), which is much more immediate than real estate tax benefits.

### In Three Years:

- Multifamily Real Estate: $133,100 (around $33,100 profit).

- Palisades Oil & Gas: $200,000+ (around $100,000 profit).

Conclusion: The Palisades Energy project could double your money in three years, whereas real estate might give you around 30-35% returns over the same period. Plus, with oil & gas, you get a massive tax write-off upfront, which means immediate savings.

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