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As the founder and CEO of King Operating Corporation, Jay Young drives strategy and vision for the Leadership team, with oversight over operations and client relations. An oil man at the core, Jay has been in the oil and gas industry for almost 30 years and his family has been in the business for over 100 years.
In addition to his duties at King, Jay hosts the podcast the Jay Young Show, and is a Forbes Books author of “The Upside of Oil and Gas Investing”, wherein he breaks down the story and strategy behind the King investment model.
From a thousand wrong ways of investing in oil and gas, Jay speaks about his book that guides you to the ultimate way of investing. “The quality of your questions can determine the quality results.” emphasizes Jay; to structure your investment and create wealth the right way.
Jay also speaks about how King Operating is different from any other investment. He shares his perspective on the incredible opportunity for investors to join the second Oil & Gas Fund 2 that will be launched in October, the tax benefits investors should take advantage of, and how they can diversify their commodity and why now is the time to be invested in energy.
Make sure to dive into this episode if you are looking to learn more about our upcoming investment opportunity and the specifics of the oil & gas funds!
In This Episode
- How did Jay get into the Oil industry? What did the 30 years encounter?
- Jay’s personal wealth strategy.
- What do the oil and gas assets consist of?
- How is King Operating Fund different?
- What are the biggest risks in Oil & Gas investment?
- Upcoming OG Fund 2 Highlights
- Jay’s advice on how to accelerate your wealth journey.
Hey everyone, welcome to today’s show on wealth strategy secrets. Today we’re joined by a special guest, Jay Young. As the founder and CEO of King Operating Corporation, Jay Young drives strategy and vision for the leadership team, with oversight over operations and client relations. An oil man at the core, Jay has been in the oil and gas industry for almost 30 years, and his family has been in the business for over a hundred years. In addition to his duties at King, Jay hosts the podcast The Jay Young Show and is a Forbes Books author of The Upside of Oil and Gas Investing, wherein he breaks down the story and strategy behind the King investment model.
Jay, welcome to the show, my friend.
Well, I’m honored, Dave. Thank you so much for having me on. This is really good. I love you on the other side of that line.
Yeah, absolutely. Really grateful to have you on, Jay. And I know we have a ton of listeners in the audience who are existing investors into Fund One, a lot of people who are interested in this asset class and really our investment thesis, right? We’re looking for assets that are non-correlated to the markets, right? We’re also looking at assets that really live at that bottom level of Maslow’s hierarchy, so real estate, energy, you know, right there.
And you know, it was really fortuitous that we had the opportunity to meet you guys a year ago now and really learn about the business model, which supported our investment thesis. So, really grateful to have you on the show, and maybe you can tell people who aren’t really familiar with Jay Young—tell us a little bit about how you got into the oil industry and what those 30 years look like for you personally.
So, great. Thank you, I appreciate that. You’re right. I mean, I grew up in the business. My great-grandfather, four generations. So my great-grandfather drilled wells in Pennsylvania, came down to Oklahoma, then Texas, and ended up in a small little town called Coahoma. Coahoma, Texas.
In Coahoma, there’s an oil field on the south side of the road right before you get into Coahoma. It’s a real small town east of Midland, but there’s a big oil field on the south side of the road. My grandfather helped drill and operate all those wells for a company that changed companies a few times, but he was the guy. He was the guy on that oil field. That was back in the ’30s, ’40s, and ’50s, where they really finished up there.
Then my great-grandfather had 12 kids, and if you’re a man, you’re in the oil business, and if you’re a woman, you’re married to somebody in the oil business. So, it kind of goes back. My grandfather and I spent a lot of time because he let me drive his pickup in the oil field. You know, the old three-speed on the column.
When I was 12, 13, I was tall enough to hit the pedals, so he let me drive. If I drove the oil field with him, put an hour or two worth of work in working on wells, he would allow me to drive. That was a given.
Then I went out there to the oil field. There’s also a girl down the oil field road that I could visit when he was taking a nap. I could go by there too in his truck and act like I was big stuff when you’re that age driving a truck. But anyway, different story today.
So I kind of grew up in it. In the early ’80s, I’m almost 60 years old, 60 in January. So in the early ’80s, when I went to college, oil and gas was very unpopular. Very, very unpopular.
I got a degree in business, a BBA from Angelo State University out in San Angelo, Texas. I didn’t get an oil and gas degree because, like I said, oil and gas were really unpopular. Prices were down, and everybody thought we were never going to use oil again.
It’s crazy to think what my grandfather would think today if he knew what was coming around the corner because everybody thought the oil and gas business was dead in the ’80s. All the books were written about the finite number of barrels of oil and gas demand and things of that nature.
So I didn’t get a degree. When I got out of college in ’85, my other grandfather was a stock market guy, a Wall Street entrepreneur. I’d read The Wall Street Journal, the Kiplinger newsletter—people remember Kiplinger. I’d read that. My grandfather gave it to me, and I’d read it back in college.
When I got out, I became a broker—stockbroker, commodities—for five years. Then, in 1990, I went into the oil and gas business. For five years, I worked for another company here in Dallas. I learned how to put deals together.
In ’95, I started my own company putting oil and gas deals together. In ’96, we started the operating company to operate our own wells. In ’95, I was doing it for other people as an entrepreneur, buying deals from other people and putting them together.
In ’96, I started an oil and gas company called King Operating Corporation, which still goes today. We’re an operator in Colorado. We’re signing up for Wyoming. We’re in Texas, Oklahoma, Kansas, Colorado, and we’re going to sign up in New Mexico. We’re looking at a deal right now for Fund Two in New Mexico, which is exciting. I won’t get into all of the details unless you want them.
I know we’re gonna jump in a little while, so no, that’s really helpful to get to know you a little bit, Jay. Talk to us, you know, because this show is also focused on wealth strategy, right? We’re trying to help investors really build their wealth with an alternative strategy than Wall Street’s promises. So, you know, obviously, you’ve done quite well. Tell us a little bit about your personal wealth strategy.
Yeah, okay, good. Well, I tell you, the oil business is a tough business. What we did over the years was put a deal together, sell it, and then the oil would run out, and that’s the end of it. So, you know, kind of didn’t really build a lot of wealth in the 2000s.
Then 2010 came, and in 2015, as I write in my book The Upside of Oil and Gas Investing—I probably have one somewhere, but I’ll be glad to send one to your listeners. I’d love for you to learn more about how to invest in oil and gas because there is a wrong way to do it. There are a thousand wrong ways to do it, and there’s only a couple that retail investors can get into. You want to split up your portfolio and diversify.
I was on a chairlift in 2015 in Beaver Creek, Colorado, with a good friend of mine, David Moore, who’s also a real estate guy—an apartment guy, which a lot of your listeners are. I was on the chairlift with him in 2015. You can imagine 2008–2009, people leaving houses like no tomorrow because they can’t afford them—overleveraged—and going into apartments. The apartment business just exploded in the early 2010s, ’11, ’12.
In 2015, I was with David, and I said, “Hey David, how’s business this year?” He said, “Man, it’s just unbelievable.” I said, “Really?” And I don’t know why I asked this question, but sometimes the quality of your questions determines the quality of your results. That question right there today was probably a $100 million, $200 million, or billion-dollar question.
I was real thankful to ask that question: “How do you structure your deals?” He said, “Well, we do the value-add, where you buy an asset, we buy an apartment complex, and then you put money into it. You finance it, you find money to put the equity down—30 percent down or whatever it is—and then you also raise more money because you want to value-add. You want to go paint the swimming pool or the entrance, maybe some of the roofs. You value-add.”
He said, “Then, after three or four years, we either sell it to somebody who wants it more than we do, or we refinance it.” This guy has 30,000 doors now or something. But anyway, I learned a lot.
In 2015, I came back to Dallas and pulled my team together. I’ve got an SMU guy who’s a CFA and a Rice MBA. I’m like, “Okay guys, we’ve got to find the right product at the right time. We’ve got to put this deal together because we’re going to start valuating like apartments.”
These guys just looked at me like, “What? That’s not the oil and gas business, Jay.” I said, “No, no, no, no, we’re going to do this differently because nobody does this. Nobody in our industry does this like this. I want to be the first one. I want to be the guy that just kills it. I want to be the guy that investors just can’t get enough of.”
So, they’re like, “Okay, all right.” We found a deal in Scurry County, outside Midland, on the eastern shelf of the Permian Basin. It’s a deal where we raised $6 million from investors, increased the value in one year, and sold a third of it for $8 million.
“Wow, okay, tell me more,” right? Clients got all their money back. They took the tax write-off. The $8 million probably should have gone into a 1031 that I should have put together, but anyway, they got the write-offs. They were getting income and a scalable investment. They got their money back in seven, eight months—13 or 15 months at the latest.
My guy in Denver, Larry Mueller, put in $600,000. I sent him back $800,000 within three months. Anyway, I was like, “Wow, that is really a great way to do it.”
We increased the value, and that was one of our assets in Scurry County. We did Scurry County two and three, then put all those together. Then we did a Howard County project, and now we’re doing Fund One.
What we do is put enough assets—just like you guys buy apartments or buildings—and I’m putting five, six in each one. In Fund One, we have Wyoming. We’re going to spend $10 million, maybe $15 million in Wyoming in the next six months.
We’re going to increase the value in Colorado. We’re going to spend a million more dollars in Colorado by doing 3D seismic to increase the value. In the Mid-Continent area, we’ve drilled two horizontal wells that are producing 30–40 revenue streams—extremely powerful. We’re drilling five more wells there now, five more vertical wells, and two more horizontal wells this year.
That means we’re going to spend $25 million there to increase the value of that project. In West Texas, in the Permian, I should have brought a map today to show you. I’ve got them in the conference room with my guys.
The two wells east of Big Spring we have there—those are two Wolfcamp wells. Powerful. Those wells are going to come in at 1,000 barrels a day and about 1–2 million cubic feet of gas a day. Good revenue streams for investors.
The two Cotton Valley wells are going to come out at 3–4 million cubic feet of gas a day. Hey, those are all paid for your investors. Every investor that’s on that, you’ve already paid for that. You just haven’t gotten paid for it yet because we’re going out there and drilling these wells.
It’s different than apartments. I mean, apartments, you buy them one day, and you get a check the next, kind of. I mean, it takes…
Right, so maybe… Yeah, that’s great. Maybe you can elaborate a little bit on what the assets actually consist of, right, in the fund. I know there are a lot of questions, and people are new to this asset class. So what does that consist of—everything from the land leases to…? If you can, you can go into that.
Yeah, so we don’t buy the land itself. We buy the leases or the mineral rights in order to drill. Let’s just look at Midcontinent. What I liked about Midcontinent is 80 wells that hold 640 acres. If you do the math, that’s 80 wells holding 640 acres, which is like 51,000 acres of land lease-wise.
You look at that and buy the leases. Each vertical well holds 640 acres. We buy the wells—I believe they’re 60 instead of 80—but let’s say there were 60 wells holding 640 acres. That’s like 30,000 acres of land we have. That is in the fund, and all those 60 wells are producing income. It’s a little bit, not a lot, but still something.
With the land capable of producing, if a well is on 640 acres, you can downsize and drill one well on 640, two wells on 320, and then go to 160s, 80s, and so forth. Each of these assets stands on its own. When you talk about funds or Fund Two—like some of the deals we’re looking at there—it’s the same thing. What’s the upside?
There’s no bigger upside in any investment I know of than drilling good oil and gas wells when prices are good. We can raise $80 million for a project, drill wells, and it could be worth $200 million overnight. Each asset has value-add. We don’t look at a deal unless it has upside. For example, Midcontinent or Wyoming.
The great thing about Wyoming is there are over 100 locations we can drill. That makes sense to drill the location.
Yeah, that would make sense. Maybe you can articulate a little bit more about the value-add. Again, a lot of new people are entering this asset class. What does value-add mean to you?
In Wyoming, we have three projects we’re getting ready to do. They’re registered at $200,000 per well. We have the Phosphoria zone and two wells we’re going to drill. Even though there are offset locations, the other project had 40 vertical wells drilled in the area. All of them produced about 25,000 barrels.
They’re vertical wells—think of Coke cans on a table. The vertical wells go down and penetrate the surface at about 6,000 feet. All of them produce oil around the wellbore.
What we do is look at the math and go, “Wow, that’s great. Let’s go horizontal between them.” If there’s oil all around, there’s oil in the middle. We drill horizontally in the middle, going all the way out to the end with a 5,000-foot lateral.
For example, we might buy the Borden County project for $10 million, drill three wells at $5 million each, and the project will be worth $25 million.
The land might only cost $2,000 an acre, but if you drill wells and produce hydrocarbons, that’s when you get a multiple on your investment—three-to-one or four-to-one. That could bring the value to $75–$100 million just by drilling those wells.
Drilling wells increases value. For example, with the $80 million we’re spending in Fund One, we’ll drill two Cotton Valley wells, perforate and drill two wells in Wyoming, and two more horizontal wells in the market. Each time you drill a well, it increases value.
It’s like a house appraisal. A third-party engineering firm values the fund, and after drilling, the value increases. Every well drilled adds value—not only the drilled location but also the offsetting locations.
If you drill one horizontal well, imagine the surface with a one-mile-long lateral. After drilling, you can take it to the bank and say, “This well cost $5 million,” and they may assign it a $10 million value. Additionally, they might assign Proven Undeveloped Locations (PUDs) nearby.
If one well produces 500,000 barrels, the SEC allows you to record value for two offsetting wells. This increases the total value to $20 million.
We’re doing this in the Reed Project in the Permian Basin, Cotton Valley, and Wyoming. Drilling these wells increases project value.
Our goal is to increase the fund value from $80 million to $200–$300 million. If oil prices go to $200 a barrel, that could mean $3 billion. If prices drop to $40–$50, it won’t be as much. At $70–$80 a barrel, $80 million becomes $200 million.
We plan to sell $100 million worth to return money to clients, likely in the first or second quarter of next year.
This approach allows people to make money in oil and gas. You get a 100% tax write-off and monthly income. But if you don’t get your money back, you’re not making a multiple.
Our goal is to build this asset, drill good wells, and increase value from $80 million to over $200 million. Selling $100 million worth gives clients their money back, and they continue earning monthly revenue from 14 additional wells.
The 14 additional wells will increase monthly revenue beyond the current legacy production.
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Right now, that makes sense. I appreciate that. Let’s talk a little bit about PDP versus PUD. I think a lot of people who have invested in this industry in the past have gotten burned by much more speculative type investing in oil and gas. Talk to us a little bit about the makeup of PDP versus PUD and what those actually mean for people and how your fund is different.
Yeah, okay, great question. The big thing, I think, when somebody says, “I’ve been burned,” is they probably had some promoter come out and say, “Hey, we got this well we’re going to drill. It’s a five-to-one return. Put up $100,000.” Those deals are so speculative. You’ll never see those sold to oil and gas companies. They’re just promotional deals. The promoter is probably making the money, but that’s it. Nobody else is making any money.
What we designed is, we’re buying PDP, which is producing properties—literally producing like apartments that spin off revenue. We’re buying PDP, but we also buy PUDs. Part of our strategy is we’ll buy PDP, and then we’ll also buy PUDs or locations to drill in the future. Our goal is to buy enough PDP if we can find it—it’s hard to find—but also buy some PUDs or locations that we know we’re going to hit when we drill. Then we raise the equity to go and drill those wells.
That’s how our investors make money, because they’re not investing in a one-well deal or two-well deal. This is all scalable. We have scalability. That’s why we like Wyoming so much—because they had 100 locations, no dry holes. Devon’s been out there. It’s produced a tremendous amount of wealth. It’s produced a couple of TCF of gas. It has produced oil and gas.
It is so different. You can’t really talk about some promoter that’s got a deal projecting, “Oh yeah, well, I got a well that we can invest in,” and compare it to one of our deals. It’s not anywhere close to being the same. When somebody says, “Well, you’re just a promoter,” I go, “Man, you have no idea what you’re talking about.” I mean, I’m sorry, you don’t. If you’re looking at me, looking at my projects, and looking at what we do—it’s a multi-million-dollar project. Fund Two is going to be an incredible project because of the deals that we’re looking at.
Yeah, so what would you say, Jay, is the biggest risk in your mind for investors who are coming into this and, again, might be new to it? What are the biggest risks you see?
Oh, so the biggest risk? Well, the biggest risk for the fund is oil gas prices, right? If they go down to $20–$30 a barrel, which I don’t know, but I don’t see it ever going down. But if it does go down to $20–$30, then there’s going to be a challenge. If it stays where we are today, we’re going to kill it. We can have wells in the BLM, or we can have—BLM is Bureau of Land Management—which is harder to get. You know, the government’s shutting this down on permits or ESG and all these other people. It takes longer to drill wells, but we’re not really in those areas. It’s all about supply and demand.
Right now, prices have come down the last couple of months. Great, I like it. I’m not a seller right now, I’m selling oil and gas crew, but I’m more drilling than I am producing. My bill’s a two- or three-year deal. Don’t worry about your check this month because your check this month is going to be down, and next month is going to be down because we haven’t drilled all our wells yet. We’re raising the equity necessary to go drill a bunch of wells, so our revenue checks could be down the next three or four months. Nobody has a bigger investment than I do, you know?
There is one group that just came in for another $4 million. They do have the third group, they’re not an individual. I’m the biggest, largest investor, one investor with over $3 million. I’m one investor. This other guy has more than that, but they have two guys. But I’m just saying, if gas prices are now low, if prices do go down, how bad is it? They’re going to shut us down? No, we’ll still produce the wells. If it goes down to $20–$30, we may have to shut some of them, but not economic. We’ll still produce the higher-producing wells, and so clients will still receive revenue checks even at lower prices. There may not be a—I mean, I’m assuming when I say that, we’re going to sell half the fund in the second quarter next year, that prices are high, or not high, but just not $40 a barrel, and there are people out there still buying, and I know there are.
Right, and what do you think, I mean, from a geopolitical perspective? You know, obviously, lots going on, but what are your thoughts on this?
Well, today, I don’t really, you know—we were talking about it on whatever channel that was, Fox or whatever it was the other day, and somebody was asking me. I said, “You know what? The government’s going to do what they need to, and I feel like right now, they’re keeping prices down. They’re unloading a tremendous amount of the Strategic Reserve right now to keep oil prices down, gasoline prices down for this election. But wait till after the election in November, December, January. Prices are going to go up, and they’re going to—I don’t know where they’re going, but I’m buying as much as I can right now because my goal is to have more production and so forth. But I want to get as many deals on the table right now as I can because in three months, six months, it’s going to be crazy.” Yeah, yeah, prices are going to go up. Supply and demand.
And tell us a little bit about the mix of oil and gas, because, again, I think, you know, people are kind of new to the asset class and don’t really understand the mix and the hedging strategy that’s going on there.
Yeah, so we have three different assets that, when we drill a well, we could produce at any one time. It’s all about the area. Like in the Barnett Shale of Fort Worth, that is all gas—natural gas, period. If you drill wells in the St. Andrews formation or in Colorado right now, it’s all oil. It’s water-driven, not gas-driven, but it’s all oil, 100%. And if you drill wells in West Texas or any of the other places we drill, pretty much it’s gas-driven.
So, you have oil that you sell, you sell natural gas, and you sell NGLs, which are Natural Gas Liquids. This means it’s a gas that’s oily, so they have to strip the liquids out. It’s a combination of natural gas and oil. But any well, you know, it matters how much well control you have. And I feel like I’m a “closologist.” You know, if you say, “Are you a geologist?” I’m a “closologist.” What do you mean? I’ll go up, I’ll drill close to wells that have already produced. That’s what my gig is. I don’t tell everybody, maybe, but no, I just like drilling next to wells that have already produced. So, we pretty much know what comes out of the wells.
The majority, I mean, I say majority, right now we have a pretty good mix with oil and natural gas. We bought some of that natural gas stuff that’s in our legacy production at $2.20. It’s gone up to $9. I think it’s down to $6–$7 right now, but it’s now tripled or quadrupled in price, whereas the price of oil, you know, was $50–$60–$70. It might have doubled for a little bit, but natural gas is where it’s been over the past couple of years. Natural gas is a lot easier to drill, and a lot easier to operate than these high-powered oil wells, but they’re still great.
Right. And any impacts you see from what’s going on with the war between Russia and Ukraine and how that’s impacting Europe right now, especially on the natural gas side?
Yeah, I’m really surprised that the increase in LNG, the LNG market, is going to increase. Let me say, I went to the conference yesterday in Houston, and they were talking about like 12–13 billion today, and it’s going to be 40 billion pretty soon a day. That’s going to be shipped to other countries like Europe and, you know, Ukraine and countries like that, or Germany. Germany’s been—they have bad policies from 10 years ago, and that’s what we have right now. We have bad policies, and bad policies are going to hurt us five, ten years from now. That’s why it’s great to get into the oil and gas business now, because I don’t feel like there’s a way where oil and gas prices are not going to go up. They will go up in the future because of bad policies, but we’re going to supply natural gas to a lot of different countries. This is good for everybody.
Right, so Jay, I know we’re rolling out Fund Two. Everyone is super excited about really this opportunity, the business model, especially the timing of this to really be able to take advantage of tax advantages before the end of 2022. Can you share with us some of the highlights about Fund Two that you’re most excited about?
Yeah, we’re looking at some incredible projects right now. The markets—I was listening to some of the guys at the public company the other day with Chesapeake, and they were talking about the markets being pretty dried up right now. The financial markets—people are trying to get in, and there are a lot of deals out there. What I’m trying to say is, we’ve got great deal flow right now, and we’re looking at some incredible projects that the investors can participate in. Not only do they receive 100% of the tax write-off that we’re totally excited about, but also monthly income. You know, having that monthly income that people love, which I do love, that everybody loves that monthly income. But also, as we scale this investment, we’re looking to build a $10 billion company with you guys, with everybody involved, and be a part of it today.
What we’re doing is mitigating that risk with drilling different projects in different areas. We’ve got the Wyoming project, where we’re drilling wells next to wells that have already been drilled up in the Wyoming area. We’re looking at Borden County, which is a really great project that we’re excited about. We have our fingers in that, we’ve bought, and we’re getting ready to drill a well right now, getting started there. Then, there’s the Mid-Continent area and the Eagle Ford area, and the East Texas projects that we’re buying. We’re finding properties like this one property right now that I can’t tell you everything about. I don’t want any of your listeners going out to negotiate this deal with me, but let’s just say it’s in X.
They’re going to give us time, like 22,000 acres, and they’re giving us time to drill one or two wells. It’s right on the shell of some of the biggest oil and gas producers in the Eagle Ford, with the Austin chalk and the Eagle Ford. I mean, these are big, huge wells, and they’re expensive to drill. We’re trying to negotiate where we can get in for a little bit of money, but they tell us, “Okay, it’s kind of like a farm-out, you know, where you come in and you drill wells, and you don’t spend $10 or $15 million on acreage up front before you even drill your first well.”
These are projects that we have in the Wyoming area, in East Texas, and this other project I’m talking about right now. You know, projects that we have that you can go in. I’m talking to Chesapeake about their acreage in the Cotton Valley, which is above the Haynesville. They’re drilling in the Haynesville, but we want to drill the Cotton Valley uphole. They’re not going to drill it because it’s not big enough for them, but it makes good economic sense for us. So, we’re looking at some of those projects, and we’re staying really excited. Our key guys in these assets are continuing to look for deals. Billy’s looking for deals. But as we look for deals, we not only look for them but find and negotiate these deals, you know, with not as much money up front, because all the upside is in your drilling.
I’m really excited. I know that’s a long answer to your question, Dave, but I am really excited because we’re in a great arena right now. We have some great partners like you who have come into our investment that we’re able to build off of. I’m a big investor in this, and I’ll be a bigger investor in this next project. I’m really excited about it. And I tell you what, at the end of the day, it’s all about risk to reward, but it’s also about how we can mitigate that risk.
I was asked the other day, “Are you going to go get a bunch of financing?” You know, we hear all about big financing and people losing companies and their GNA. Well, what we’re doing is a great way to do it. You’ll see Fund One—we’re going to sell part of Fund One pretty soon, probably by the summer. You’ll see a big chunk of money go back to the investors, hopefully all of it. Then, we’re going to use some low-cost debt just to keep things going on our route to $10 billion.
You know what? No other firms out there—only gas companies, I’m talking about the big firms that are selling through broker data industry—don’t talk about $10 billion or a $20 billion company. They don’t because the investors have no part in it. They don’t have any part in it. We could talk about the Weber only and all that, but just to let you know, that’s why I wrote the book The Upside of Oil and Gas in the Basin to let everybody know you’re a partner of ours. Everybody here is a partner of ours on the route to that $10 billion, and that’s what I’m excited about. I’m more excited about that and how we’ve structured our programs.
I’m taking a Harvard Business School class now about alternative investing. The reason why I’m doing this is because, man, I’m doing this for you guys. I want to have the best product available so you guys can understand, “Hey, what is it?” And I know that if I had a little bit of extra money and I wanted to diversify into oil and gas, Jay Young King Operating—that’s synonymous with, “Hey, we’re going to treat you right.” But we’re going to treat you right. You know, if it’s not about us, it’s about you. We appreciate all of you, and the structure of the deal is so important for you, the investor. That’s why you should read my book, and you shouldn’t do business with anybody else except me and in the oil and gas industry. But now, I’m not saying don’t do business with me. I’m not trying to oversell myself. I’m just saying, look at the structure of the deal. It’s so important, Dave, and you know this. I mean, man, you’re in real estate, you’ve made bazillions in the real estate business for people, and we’re doing the same thing in oil and gas, and that’s so important.
Yeah, and I really appreciate that sentiment, Jay. And, you know, we’ve now had almost six months of operating time working with the King team. It’s really great to see that sentiment you have around taking care of the investor first and building your business with the individual investor as partner owners. You’re right, that is very unique to the industry, right? Where people are just raising money through institutional means, which is a very different game. So, you guys really take to heart the investors and having that mutual alignment with investors, which is one of our key due diligence items. So, I really appreciate that thought, Jay.
And then, one final question for you: If you could give one piece of final advice to investors on how they could accelerate their wealth journey, what would it be?
Good question, because I look at wealth in two different ways, right? Monthly income, passive monthly income, but also, you know, I was reading about—I’m trying to figure out why and how I got there, but, you know, live off of 20% of your dividends and reinvest the other 80%. I believe in that. You’ve got to make money, you’ve got to have passive income. But, you know what? If you take 80% of your money and put it back into assets that are generating you income, don’t just keep it in cash. I mean, the stock market’s not necessarily a friend of ours anymore. It’s so up and down, and things are so overpriced. But, in my opinion, I would invest with Pantheon, I’d find some other people to do different types of alternative investing, and I would put 80% of that money back to work, invested. That’s the biggest advice that I have. That’s what I’ve learned, and that’s what I do. I’m real excited about that.
Yeah, absolutely. Well said, Jay. I really appreciate you coming on the show today. I think it’s been a very insightful discussion. It’s a new asset class that’s getting a lot of attention, and I think the timing is really now for this asset class to diversify into commodities. Also, to be working with such a unique team, right, with such a unique business model in the space, and that’s how it’s kind of aligned with us. So, again, grateful for the opportunity.
If folks would like to get a copy of your book, what would be the best place to do that?
Yeah, general website kingoperating.com. You can also go to upsideog.com, upsideog.com, and fill out a questionnaire. If you qualify, I’ll send you a brand-new autograph copy of my book. I have no problem with that at all. Appreciate you being there. We do a lot of social stuff, we’re not live through some, but the best way is just go to our website, Kingoperating.com.
Excellent. And if people would like to invest in this opportunity, they can definitely reach out to us at pantheoninvest.com to learn more about this opportunity. Thanks again, Jay.
Thank you, Dave. I appreciate it. Yeah, I love having you, man. I love being on your show, and I look forward to working together.
Likewise.
Thanks, Jay.