How We Turned a $50K Investment Into Passive Monthly Income

Beautiful. Okay. So really excited to be doing this with you and presenting with you. This is awesome.

Okay.

So Catherine, do you want people that are attendees promoted to panelists? Are we leaving them as attendees for the moment? Let's leave them for attendees for the moment. If they have questions, go ahead and put the questions in the chat, raise your hand, and we'll get the questions answered for sure. Make sure that setting is set. Chat. So I'll do a quick intro. So I'm Catherine Bell, and I am the founder of multiple companies. And one of them that we're really excited about is the 7 Streams of Passive Income Investor Group that we are going to be launching here soon. And inside of that, teaching people which— and not only teaching, but bringing the resources and the deals to the table to create multiple streams of passive income. And why we do that is through my own experience, through Tracy's experience, everybody that's involved here has had some form of dealing with multiple of what we call the 5 Ds— death, divorce, diagnosis, downsides from the economy, or being dumped from their jobs. Most families have dealt with 3. So having earned income— so you take your earned income, you buy assets that provide passive income, and that passive income pays for your lifestyle. So in that, ultimately having 7 streams of passive income in the different asset classes brings security and diversity to your portfolio so that when any of the 5 D's hit, your family is taken care of and you can continue moving forward just as we have, dealing with the emotional stuff and all that, but knowing that financially you're going to be okay. So what we're doing is a whole series of bringing case studies to you of showing you some of the things that we have done— some, we've done many— showing you some of the case studies of creating multiple streams of passive income in the different investment classes and having this be like a little taste tester of some of the fun things that we're going to doing for creating passive streams of income inside of the Seven Streams Investors Club. So we're going to be talking more about that. You don't have to be an accredited investor to be a part of that. If you're interested, put in the comments you're interested in being part or learning more about the investor club so that when that we do an informational session, you'll be invited to that. But in the meantime, we're not selling anything here. If you— this isn't advice, this isn't financial or legal advice. Anything moving forward, you need to make sure that you Go and consult with your professionals. If you don't know of any, reach out to us. We're more than happy to make those introductions. And then again, create multiple streams of passive income to be able to take care of your family and then go make a difference in the world. So with that, really quick, Laura, can you text Cecily? She's asking for the link. Taking care of that. So my co-host here, which I'm super excited about, she's also my business partner, Tracy Gore. So Tracy, we see your beautiful, amazing face, and this is actually your case study, which I'm really excited about. So if you want to go ahead and introduce yourself and some of the cool things, being an international bestselling author, a speaker, all the fun things.

Yes. Thank you for that great introduction, Catherine. I love working with you. So I've had quite a journey over the last 6 years when I really dove deep into investing. I've invested in multiple asset classes. I have different real estate investments. I have oil and gas investments. And the whole idea is to have multiple streams of income so that if one stream is trickling, the other one hopefully is flowing nicely. And this way you can take time off with your loved ones when you need to. You don't have to be so stressed. And so I'm excited to share today about this case study because it is one of my oil and gas investments that I actually— that is mine. It's a $50,000 cap oil and gas investment. And I'm going to pull back the curtain and like exactly what the numbers have done and how it was beneficial tax wise and also for cash flow. So if you want to go ahead and turn on the first screen. There we go. Yes. Disclosures. Educational purposes only. Thank you.

Yes. We're not selling anything. Let's be clear. So this is the team that is putting this together and you'll meet more of us and more, learn more about all of us. So of course there's myself, Dr. Catherine Bell, 5-time international bestselling author. I've been raising capital and investing for well over 20 years. I have done everything from buy and hold fix and flip, vacation rentals, all the things, residential, commercial, ground-ups, and super excited to be here and showing everybody how I did it and how you can do it too. And then of course we have Tracy, which your picture was there.

I don't know where it went.

Anyway, you can see her there. She's amazing. And then of course we have Amor. Again, huge heart, doing amazing things, a lot of philanthropic work. She's an incredible connector and investor. Same with Trevor as well. Met them in Florida at another investor network. And again, it's about who, not how. Who, not how. And all of us coming together and bringing all of our skills. And so again, over the next several weeks, we're going to be showing you all the different types of asset classes that we've all participated in. Again, case study by case study. And again, if you want more information on learning about 7 streams for you and your family, for sure, put it in the comments and we'll make sure that we connect you with that.

Is this yours? Is this your— is this the Are you just presenting on 7 streams right now?

Nope, this is the, this is the whole end, the—

oh, okay, I haven't seen this one, so you can go ahead if you want.

So understanding oil and gas is that here's the reality, is that oil and gas isn't going away, it's in. So Tracy, what are some of the things? I know there's like a whole list of things, people just think of vehicles, but it's actually way more than that, right?

Almost everything everywhere, even your electric vehicles, they have to have oil in order to make half of the parts. Basically in so many things, we cannot even produce enough oil to sustain us in next several years. So it's important for us to drill oil because we use it in so many things, hundreds and hundreds of products.

Yep, absolutely. And here's the thing to understand, it's one of the oldest investment vehicles used because here's the thing, one of the things I love about this country is that if you actually look at the tax code, there's something like 1,400 pages of the tax code that are all about how to— how we legally have to pay taxes. And absolutely, then there's something like 36,000 pages that are all about how you— what things you can do so you don't legally have to pay taxes. Because here's the truth, we're very clear that by you keeping those taxes in your pocket— and our goal is to keep $1 billion of taxpayer money in their pockets so that they can turn around and go make a difference in their families and communities. That's what it's really about. And so the tax code literally was created for that. And so having the incentives and the tax code created for that, this is where things get really fun. And so understanding the need for energy, but then the government wants you to invest in it, and how they reward you for investing in it is by giving you these tax benefits as well. So I want you to be paying attention to that. So it's not just about the actual investment, it's about obviously the benefits that you can get from it as well. So you want to talk about this? It's exciting how this works.

Yes, this is so funny because This isn't the slide that you sent me first, so I'm not used to this one. Okay, so let's see. Historically, we have been getting 90 to 95% deductions in the year that we have invested. So last year we have an oil and gas fund called Pumps and Pumps, and our investors realized a 95% deduction in for 2025. And what that means is they, they invested $100,000 on their tax return. Even on their W-2 income, $95,000 of that is written off before your tax. So the government wants us investing in oil and gas. They have these tax incentives for a reason.

Okay, this is just saying more of what you just said.

Okay, so basically what happens is you get to deduct $47,000, $550,000 investment. I did. Okay, so with that being said, that really adds up to be $11,000 in my pocket. So it saved me $11,000, that write-off did. And if you take that $11,000 out of the $50,000, that leaves you $39,000 at risk. At least that's the way I look at it, because I've already realized $11,000 gain over here, right? So I got $39,000 sitting there that's at risk. And this particular oil and gas investment I've had probably a year and a half, and it's paid me over $16,000 already. So it's doing very well. I'm super happy about it.

This is incredible.

So that's what I was just talking about. So the original investment was $50,000. I deducted $47,500 from my taxes, which saved me $11,000 in my pocket. So there's $39,000 effectively still at risk. At least that's how I like to look at it. What does this say? IRS effectively shared 22% of the investment risk through the targeted tax incentives. Income versus retention matrix. Tax brackets. To achieve this tax savings through oil and gas, there's no additional employees, no new customers, no extra marketing, and no additional work. Simply more of the money that I had already earned I was able to keep in my pocket. And that's what oil and gas does for you. You're able to retain more of your money.

So, and in short, the word is passive. This is 100% passive. Whether you get out of bed or not, the money's coming in. We absolutely love that. So again, the hidden ROI, understanding that you can acquire assets. And in this case, the— I want to talk about like how we're doing it right now with the pumps and pumps with that one, right? So we, I think it's 40 wells that got acquired.

So we bought 40 wells. The fund that we invested into, because it's a fund of fund model, meaning our fund invested into another fund and that fund invested into 40 different wells across 4 different states in different basins with different operators, top quality operators actually. And we have received our second distribution from that. It was closed December of 2025. And we, all of our investors realized the 95% tax deduction, which is amazing. And then cash flow started last month. We've had our second— we're just having our second distribution now. And there was really only 1 or 2 wells up for the last— for these last distributions. But we just heard that over half of them are now online, which means in the coming months we will start getting more and more money to be able to distribute to our investors. So it's going to be great.

So to understand, like, here was amazing. So the acquisition of the, of the asset happened in the end of November, beginning of December. But then they are— our investors got the actual immediate tax savings like right then at the end of the year, right? Then as we continue to acquire more of these, because the money, the capital is there, operations begins. Then we got our first revenue— was it May? So it was April or no, May. Losing track of my days. So it was April and then May. So we got our first—

the May revenue.

And then as these continue to come online more and more and more, obviously the benefit, and the value of it appreciates. So this is essentially the timeline of what it looks like inside of investing with the typical oil and gas deals that we do, which is different than real estate. So that's a whole other thing.

And if you compare it to different asset classes, there's different tax deductions that you will get with different asset classes. And that tax code, like Catherine was saying, it was written actually for our benefit. If we will pay attention to it, the government incentivizes us to actually invest in the things that they think is important for the country. And so investing in oil and gas is one of those things. Real estate, You get accelerated depreciation, oil and gas, you can get working interest. And the way that we are able to actually pass down the tax deductions to our investors is because they are— the first year they are a limited partner. The entity is a limited partnership, but they are a general partner for the first year. And so they do have liability. And but that's the only way the government's like, okay, you're liable for this investment and we're going to incentivize you by letting you deduct however much of your intangible costs that you have. So it's, it's a, it's a win-win actually. Right.

And here's what I want to say. We're not saying that oil and gas is any better than anything else. What we are saying is that it just needs to be a part of your portfolio to make sure that you are fully diversified. Like, that's the thing we really want you to understand, because we are all in stocks and we got different savings account, lots of different real estate and oil and gas as one of the many pieces inside of our investment stack. So that's why we're teaching this to you today, to understand it's one of the many pieces. So a complete ecosystem of benefits. So oil and gas, we have working interests is what it's called. You'll hear that term a lot. And the biggest benefit right there is significant upfront tax deductions. Like, that is a huge part of why people invest in oil and gas. So what does that mean? It means if you have a significant tax bill coming up, for that year. And again, this is a piece you want to understand. You want to have a tax planner and a tax preparer. They're two completely different skill sets. If you don't have a tax planner to be talking to you mid-year to see where you're going to be so that you can plan to the, to the end of the year and get these deductions, you want to make sure that you have one of those on your team. Again, if you don't, reach out to us. We're happy to make that connection. This is a really important piece to your team. So these, depending on how the deal is structured, sometimes you get monthly or quarterly cash flow. And then there's long-term production revenue. Like, we've been told some of these go on for 25, 30 years. That is one heck of an investment. And then structural inflation hedges characteristics. So it's interesting because what they've discovered is like, when real estate is up, oil and gas is down. When real estate and debt is down, oil and gas is up. So again, it's just one of the plays to help balance out your overall portfolio.. And then of course, potential reserve appreciation. So not all wells and oil and gas deals are equal. So you need to do your research on it, do research on the sponsors, everybody involved. However, the benefits really are significant. And I think we can all agree, like, if anybody's old enough, they've all watched the TV show Dallas. Or what was the other one? The Beverly Hillbillies. Thank you. Beverly Hills because of oil and gas.

Again, right.

Stories are— go to Texas, they're everywhere. So black gold, black gold, there we go. Liquid gold, there you go. Okay, so structural market risk. So again, understanding what the risks are with this. Okay, so we can talk about what's even happening in the economy, right? Like, we all know what's happening because of the war, the Strait of Hormuz, and what's happening there and what happened in Venezuela. Like, oil and gas are a significant part of the news stations and what's been happening over the last couple of months. Again, we— this is close, it's all a part of what's happening economically, not only within our country but globally. And the impact of that is significant. And the fact that we get to participate in it, just a teeny tiny little sliver, that matters, right? Like, we all actually get to be active participants inside of the local and global economy. So understanding and listening to I don't like listening to the news. However, there are market reports that help you understand the volatility of all of it. And then of course, there's operational risks, but that comes down to definitely the operator. What I love about what we do is that we buy up the minority interest shares of the big boys, the multi-billion dollar companies. So Exxon, trying to think of some of the names that we're with. The point being is that it is a who, not how. Play on what we do. And we do this at the end of every year. So if you're interested, again, drop us a message and we'll keep you on the email list to let you know when the next one's coming. And then of course, there's regulatory changes, legislative shifts, and we send out newsletters on a monthly basis about all of this. And then of course, like any investment, there is potential for loss of your principal, right? So again, working with a team that has a significant history and success rate so they know how to navigate through this whole industry is a really important part. You definitely don't want to be going with a bunch of cowboys who have never done this before.

So you can always hit— you could always have a dry hole, but the beauty of what we do is we invest with the companies that will do the horizontal drilling. So less likely to have a dry hole when you're going this way than if you're just going straight down, right?

And multiple wells. That's the other piece. Multiple wells is what we invest in, not just one single well, right? That's really important. So again, this is about a wealth mindset. And again, if you're not in this, not in this space yet, encourage you all to again just lean in and start understanding this. Because when you do become a sophisticated investor, these are the questions you want to be asking: is what is my after-tax return? What tax benefits are available? How much capital is actually at risk? What's the total economic benefit? So when you start understanding, you invest for income, appreciation, tax efficiency, asset protection, legacy, rather than just what will I make, what will my return make, right? Like, yeah, that's a very basic question versus a hold on, there's an actual bigger strategy here for why and what we do with this.

Well, and we haven't even talked about a depletion allowance. The depletion allowance deduction is 15% of the gross income from the producing well each year. The first 15% is not Tax-free, but it's a tax deduction. 15% of your income is then deductible. Where else can you get that? It's, it's really good, right?

Again, so many benefits to this play. This is amazing. So from strategy to reality, so performance tracking architecture. So you understand year 1 is when you're going to get your tax depreciation, like right out of the gate, which is again why it's so important to be work with your tax planner so that they're saying, hey, you need to invest this much to get this much of a depreciation, a deduction, so that you keep those taxes in your pocket, right? I don't know about you, but I'd rather keep those taxes in my pocket than pay the IRS. And it's all legal if it's done right. And so then you get your, your cash distributions, you're tracking production status. So year 2, you're continuing to get the distributions, the reserve continues to grow, you get the asset valuation continues to improve if you're with the right sponsor. And then again, year after year, you continue to receive the cash, you remain ownership interest, and the current value continues to go up in value. And here's what I love about it, is that the distribution— like, ours just happens to be monthly, but all of our investors get their initial capital that they put into it returned to them within a very short period of time and still continue to get distributions for years to come.

So you're opposite of real estate, right?

Like normally with real estate, you put the money in and you'll get it back someday. But because the returns, the distributions are so significant at the beginning of the wells producing, that's how our investors get all their capital return, still keep getting cash flow, which means they now have that capital that they put in there, save their taxes on, But now they can go put it into a new asset. Like, that is super exciting. That my— I got— put my money in, I got my money back, and I'm still getting paid out on it.

Yeah. Give me more. Get their money back within probably year 2 or 3, and then it just keeps on cash flowing. And then by— with the fund that we're investing in, by about year 5 or 7, we'll just sell those wells because we've gotten the majority of the oil out and sell it actually under what we paid so that we don't create a tax event, and then we'll go rinse and repeat and do it again.

Yep, absolutely. So here's what it comes down to. Legacy mandate. So building wealth requires understanding how money is earned, taxed, protected, and multiplied. Like, here's where you really have to shift your mindset. And again, if you want to understand more about this, we're going to be doing more of these educational seminars and teaching you more about this. So our mission is to empower others to steward resources well, live with intention, and leave a meaningful mark on future generations. This is really important to us. Again, chasing money isn't the answer, but really leaving every person, property, and community better than we found them is like, it's super important to us. So if you're interested, the next step is to, you can complete an investor questionnaire. We have it up there, my7incomestreams.com. There's an investor questionnaire and we'll, we can reach out to you. We have future webinars coming up that we're going to be teaching all the different asset classes because again, no asset class is better than the other. You need to be diversified. That's the reality of it. And so that's what we're going to be here for. We are launching our Seven Streams Investor Club. You can see the logo right there and we're really excited about that. You don't have to be an accredited investor. We are going to be bringing similar types of investments to that group so that we collectively can actually all invest in bigger deals like this. So if you're interested in that, make sure that you comment down below in the chat and let us know. And we're super happy to make sure that you're invited to that launch when it's launched. And then I see here that Laura put the next webinars up on here, so make sure you get yourself registered. It's in the chat. And then if you have any questions, now would be the time to let us know if you have any questions. And if we've done an amazing job, put some hearts and flames in the chat. There we go. Thanks, Cecily. I love it. Did anybody have any questions? Okay. Well, Tracy, I think that we did for, again, just giving a high-level overview of oil and gas. And it really is a lot simpler to get into than what people realize. Just make sure you're with the right sponsor. So we'll have more about that coming up at the end of the year because we're going to do one of these at the end of the year. So with that, thank you as always, Tracy, extraordinary. Laura, extraordinary. Love working with you and super excited to be launching this so that we can help so many other families create these 7 streams of passive income for their families to be protecting them and making a difference in the world. So have an extraordinary day, everyone. Thank you for being here. And we'll talk to you all later.

Bye.

Bye everyone. Make sure to visit my7streams.org to learn more.