# FAQ – 1859 Operating

Source: https://1859operating.com/faq/

Learn. partner. invest. 

FAQ

WHAT TYPE OF ACCOUNTS CAN I INVEST THROUGH?

Typical investment accounts are as individuals, joint accounts, tenancy in common, entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, S Corporations)

CAN I USE A 1031 EXCHANGE?

Yes, you can. If you need a referral we can connect you with the group our partners have used in the past. 

AM I AN ACCREDITED INVESTOR?

An accredited investor, in the context of a natural person, includes anyone who:

earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or

any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

WHAT IS A SOPHISTICATED INVESTOR?

A Sophisticated Investor doesn’t meet the requirements of an Accredited Investor but they have investor experience. This could mean the person believes they have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

DO I HAVE TO BE AN ACCREDITED INVESTOR TO INVEST?

Yes. We currently have investment opportunities that are open to accredited and sophisticated investors. You’ll need to register to view our current offerings.

HOW FREQUENTLY ARE DISTRIBUTIONS MADE?

Distributions are planned monthly.

WHAT EXACTLY ARE THE FUNDS USED FOR?

Investor funds are used for the total cost of producing the field. This includes but is not limited to the down payment for the actual purchase of the lease, drilling, legal and transaction costs, capital improvements, & costs to produce the well

CAN I VISIT THE FIELD?

Absolutely! Investors are allowed to visit the field before investing and during the life of the project. If you give us a heads up we can make sure someone is there to show you around and answer any questions.