Oil and gas investing is a smart way to invest your money in a good and profitable investment. You must be sure you are not getting scammed though. This is because there are people all over the place trying to scam others in every market they can think of. Be sure you are not being scammed with the investment or you can lose all of your money. This loss is not tax deductible. Here are six ways you can avoid getting scammed through proper research.
1. Research the company. Always check with the Better Business Bureau and verify there are no complaints about the company. If there are complaints be sure to pay attention to the types of complaints they are. If there are investment related complaints you should be able to make a good decision about your oil investments.
2. Look over the contract. Always read a gas investments contract before you make a decision to sign. Most scams will have a lot of fine print that say you are giving your money away and you won’t even notice until your signature has binded the contract. Read the fine print.
3. Pay attention to fees. Many scams have outrageous fees they may require you to pay. You might be required to pay a large percentage of your investment once you make a profit also. Be sure the fees don’t equal out to more money than you would be making.
4. History of the company you are investing through. When you choose oil and gas investing companies are not a scam. Many people are often scammed by the investment firm but not the company they are going to invest in. Research the investment firm has a long history of investments and they are credible.
5. Explanations in detail. In most cases, if you are getting scammed by a business if you have a lot of questions to ask and they are not getting answered. A scammer will be secretive and act as if the information is confidential. Nothing is confidential when it comes to your investment. Not only should you have things explained to you about your gas investments but you should also get everything in writing.
6. Oil drilling locations don’t really exist. If you are looking into oil investments you should always verify the drilling locations really do exist. There are many ways to verify this. If a plant is big enough you can even do a satellite photo search and see if drilling is really taking place. Don’t find out you are investing in a location that doesn’t exist. Next thing you will be told is that you hit a dry hole and lost your entire investment.
There are many ways you can avoid getting scammed when you are interested in oil and gas investing. These things should be taken seriously because you don’t want to find your money has been stolen from a scammer.
Author: Scott GibsonThis author has published 33 articles so far.