My #1 Asset Class Hasn’t Changed.
But Here’s Why I’m Glad I Drilled Oil.
A few years ago, I invested in some oil fields and it didn’t start well to say the least.
Not a fund. Not a royalty stream. An actual field with wells—with drilling and rework risk, regulatory timelines, operational delays, and all the patience that comes with it.
Over the past few months, my partner found fresh help in one of the fields and almost overnight, two wells are online.
Two years. And I’d probably do it again. But I want to be honest with you about why it’s not my #1 asset class and why that distinction actually matters.
🏢 Real Estate Is Still #1—And It’s Not Close
When I think about where I want the majority of my capital working, the answer is industrial real estate. It’s not sentimental—it’s structural.
Here’s what makes industrial CRE my #1:
- Predictable tenants — Fortune 500 companies on long-term leases don’t vanish overnight
- Financeable — lenders understand it, which means you can leverage it intelligently
- Income-producing from day one — no waiting two years to see cash flow
- Supply-constrained markets — you can’t just build more land near a major logistics hub
- Secular tailwinds — e-commerce, reshoring, and AI infrastructure aren’t going anywhere
Class A industrial—shallow bay, well-located, institutional tenants—gives you the kind of predictability that lets you sleep at night. It’s not flashy. That’s the point.
🛢️ So Why Did I Do Oil?
Because diversification isn’t just a theory—it’s a survival strategy.
Oil and gas is one of the most overlooked passive income streams available to accredited investors. Done right, a single well can generate cash flow for 50+ years—with substantial tax advantages that most investors never think to ask about.
But I want to be straight with you: oil isn’t #1 for a reason.
- It’s riskier. Drilling outcomes are never guaranteed, no matter how good the geology looks. Exxon and the majors have dry holes, it’s in their SEC filings.
- It also takes time. Two years is a long time, but not totally unusual. Permits, regulations, logistics, equipment breaks—it all stacks up.
- Prices come and go. Production declines over time. It’s not a forever-stable asset the way a leased industrial building feels.
So why own it? Because it adds something real estate can’t give you: energy exposure, deep tax write-offs in year one, and an uncorrelated income stream. It’s not a replacement for real estate—it’s a complement to it.
On top of all of that I knew to back off real estate when the time was right, 2021.
That’s the whole argument for diversification in one story.
Diversification means building a foundation strong enough that one misstep doesn’t wipe you out.
📊 The Hierarchy (How I Actually Think About It)
If you’re building a portfolio for the long game after stocks and gold, here’s roughly how I’d stack it:
- #1 — Industrial Real Estate Predictable, financeable, long-term income. Your foundation.
- #2 — Other Commercial Real Estate Multifamily, mixed-use, net lease. Depends on the market and the deal.
- #3 — Oil & Gas Higher risk, longer timelines, but real upside and serious tax advantages. Earns its place—just not the top spot.
Being diversified doesn’t mean being scattered. It means being intentional about what each asset is supposed to do and sizing accordingly.
📅 Join Me on the April 23rd in Murfreesboro, TN
I’m hosting a private event on April 23rd for entrepreneurs and real estate investors in the Nashville area. If you’re thinking about how to position your capital—real estate, oil, or otherwise—this is a good room to be in.
Check out my podcast at: https://carsonscorner.media
Disclaimer: This newsletter reflects the opinion of the Author and is not financial, tax, or legal advice or the offer to buy or sell a security. Business, property ownership, and investing involves risk. Always do your own due diligence and consult your tax, legal, and financial advisors.
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