ICOnic News | A Hidden 1031 Solution: The Underground Real Estate Advantage
A HIDDEN 1031 SOLUTION: THE UNDERGROUND REAL ESTATE ADVANTAGE
Most commercial real estate professionals know real property is one of the most reliable paths to wealth. However, few realize the opportunity beneath the surface: an asset that generates decades of passive income, strong returns, and generational wealth without the need for tenants, maintenance, or management. We call it underground real estate - oil and gas mineral rights.
When you own oil and gas mineral rights, the oil and gas operators do all the work, and you receive monthly royalty checks, much like rent, often for decades. It's one of the most durable and cash-flowing asset classes in America, historically hoarded by private equity, family offices, university endowments, and the oil and gas companies themselves.
In today's market, many investors face tight timelines, difficulty identifying high-quality replacement properties, or want to place boot money efficiently. Oil and gas mineral rights offer a strategic solution:
· Eligible as replacement property in a 1031 exchange
· Ideal for "second-identified" property strategy
· Can be structured down to the penny to absorb boot
· No property management, tenants, or leases
· Monthly income backed by oil and gas production
· Real diversification outside Wall Street and real estate cycles
Investors can even acquire mineral rights with cash, retirement accounts (Roth IRA/401(k)), LLCs, or trusts, giving brokers flexible options to serve their clients.
With U.S. energy demand accelerating and major operators drilling aggressively to meet supply needs, mineral rights present a rare combination of high yield (mid-to-high teen returns), stability, and long-term upside. At Carolina Natural Resource Group, investors receive recorded deeds to mineral rights they can hold, transfer, and pass down. For those curious about a cash-flowing asset hidden in plain sight, this is the moment to explore what's beneath the surface.
Christmas reminds us that the true spirit of the season lies not in what we receive, but in how we uplift others. This year, ICO is grateful for the opportunity to give back and support charitable efforts that strengthen our community.
In honor of our valued clients, ICO is making a donation to Lunches of Love, helping advance their mission to provide meals and hope to children in need throughout Fort Bend County. To get involved or to learn more about their efforts, visit lunchesoflove.net .
As we close the year, we celebrate not only our business accomplishments but also the meaningful impact we can make together. Giving back is one of the greatest gifts we can share.
GETTING TO KNOW BROWNING HEARD
1. If someone made a movie about your life, who would play you?
"Robert Duvall. Though I'm not quite sure how we’d rewind the clock, so I don't look as old as Robert Duvall does today!"
2. What's the most interesting thing you've tried while traveling?
"New Zealand as a whole was an unforgettable experience. In my mid-20s, I obtained a work visa and spent time traveling and working across the country. I picked mandarins, trained horses, and even helped a farmer rebuild his barn. Some jobs paid, while others were work-for-trade in exchange for food and housing. I ate mussels straight out of the ocean, met travelers from all over the world, lived in a van, stayed in hostels, and was welcomed into the homes of locals. Living in another country on minimal income truly changes your perspective. Traveling has always been important to my family, and I hope my kids get the chance to explore different parts of the world after college. It makes you a more rounded, capable, and open-minded person.”
3. What first sparked your interest in commercial real estate?
"I've always had an interest in real estate and a love for the outdoors and exploring different parts of the state. For a long time, I only thought about CRE in terms of leasing office, industrial, or multifamily space, I never really considered land acquisition. After working as a landman, I dug deeper into the industry, and given my interests, land investment and development sales became a natural fit. I love seeing what raw land can become in the hands of the right developer."
4. What commercial real estate trend do you think will define the next five years?
"AI data centers. Their sheer size is incredible, and it will be fascinating to see how they evolve, whether they get smaller or continue trending toward massive sites. Their relationship with the power grid, the push toward renewables, and the technology driving them will all play a major role. I'm curious to see how these facilities adapt over time, what their energy demands become, and how the grid rises to meet those demands."
5. Summary of your business and who an ideal client/prospect might be?
"One of my favorite aspects of this business is talking to landowners across Texas. We may come from different backgrounds, but Texans always seem to find common ground. I enjoy tracking down off-market sites and building relationships with landowners over time. My ideal client is often someone who isn't actively considering selling, but through trust, consistency, and relationship-building, when the right time does come, they know they have a partner who will connect them with the right buyer."
Did you miss our November newsletter? Don't worry, we've got you covered! Dive into our latest edition for an economic update on Houston's shifting market, insights from our team, and a fun look at our annual Thanksgiving traditions. Whether you're tracking market trends or looking for some behind-the-scenes team culture, this edition has something for everyone.
Click the link below to read our November newsletter.
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