Secured Oil Field Investments, Inc. "SOFI"
Frequently Asked Questions
What are the main reasons individuals and companies invest in SOFI secured notes?
Five significant reasons:
- You can participate in the North Dakota oil boom and know you are helping to create U.S. jobs. North Dakota now has the lowest unemployment rate of any state in the U.S. and unemployed workers are now moving from other states to fill jobs in the very high growth of the oil fields. As hundreds of new oil wells are drilled each month by the oil companies in North Dakota, the oil service firms need two significant items in very large numbers: 1) Equipment in specific configurations and in specific numbers at each location 2) Employees to operate the equipment. Most people do not realize the equipment has to be delivered to the oil fields first before most jobs can be filled. In other words, hiring employees before the equipment is in place is not productive. The oil companies and the oil service companies prefer to outsource the non-drilling equipment needs to firms such as SOFI to concentrate on the drilling function. The non-drilling function of oil service typically employs more than half the employees in an oil field, so this outsourced function of employees and equipment are creating more than half the jobs. These oil service jobs are very high paying positions as compared to similar jobs outside the oil fields. By providing high quality equipment tailored to the local needs we help the logistics firms grow more quickly and hire more quickly. Seeing the continued hiring each month is exciting and empowering. We collectively help the country in the area of greatest need in our opinion – by providing more U.S. jobs.
- Higher expected returns with less volatility. Many investors and investment professionals see these notes as offering higher expected returns than CD’s, less volatility than the stock market, and more liquidity than real estate. This asset class has many unique advantages and can fit in a well designed portfolio.
- Visibility. Our GPS systems on the trucks and trailers, which allow you to follow the trucks and trailers in real time. You can visit us to see our operations and see our equipment in use. Typically our equipment is in the field 24/7 as the oil does not take a day off, and you can see and track the utilization online if desired.
- You will be helping supply high quality oil from the U.S. reducing our nation’s dependence on foreign oil.
- As we helping accelerate the supply of oil, you will be partially reducing oil and gas prices.
How can I see specific third party data concerning the demand for new oil wells in North Dakota?
Multiple times per year, the Bismarck North Dakota main newspaper, the Bismarck Tribune publishes a very informative series of charts and articles showing the number of wells drilled and other important data. Sign up here for our newsletter and we will send you the links to this data. The graphs of total wells in the area, and graphs of new wells help you track the oil drilling progress. You can also enter the name of the North Dakota oil fields into Google and see many articles about the oil boom. The region in is called Bakken. Enter “Bakken Oil Boom” into Google and you will see many news stories. As an alternative you can enter North Dakota Oil Boom.
How can I see what the trucks and trailers are doing each day and where they are?
We provide online GPS tracking of each truck and trailer combination. If you become part of our program, we will give you an online account so you can track the trucks and trailers in real time.
How can I see the employees helped by this equipment?
Each month we provide a video and blog highlighting workers we help in the operating companies who rent or lease our equipment. You can hear their testimonies of why these employees moved to North Dakota for employment. Sign up here for our newsletter and we will send you the links to this data.
Are the trucks and trailers insured?
Yes. If a truck is damaged in an accident, or stolen, this will not impact your interest rate as the note has a fixed interest rate.
What if a truck breaks down?
We have agreements with local repair shops to repair the trucks quickly and locally. This downtime will not impact your interest rate as the note has a fixed interest rate.
How does the rate compare to the Bank Rate CD rate?
See the link below
How experienced are the principles of SOFI in the transportation and equipment leasing fields?
The management team of SOFI has more than 15 years experience in transportation, equipment leasing, and software. These backgrounds help SOFI tailor our programs and services to meet the needs of the operating companies in high value add situations. By being in North Dakota, the main hub of oil well growth in the U.S. we understand the extreme cold conditions and other challenges unique to the area. We add specific controls and accessories desired by oil services companies needing fast deployment. These companies are often repeat customers, leasing more equipment because we understand their needs at a very detailed level and can move quickly to supply very high quality equipment in standardized ways to specific well sites.
Do government stimulus incentives help increase the demand for SOFI solutions?
The federal stimulus acts of 2009 and 2010 have increased the incentives to lease equipment. In addition to the oil boom, we are seeing high demand from our oil service customers to lease equipment because of these incentives. We can provide more information as needed to help you understand how these incentives are creating very high demand for equipment. In our years of experience with leasing, the current government incentives and the market demand in the oil fields have never been this favorable at the same time. This is a way to participate in the positive impact of the stimulus incentives.
Can I sell my investment or cash out early?
For the term of the note, you are making a commitment for the term selected, at least one year. We use the money to buy more trucks and trailers. If you are concerned with potentially needing the funds before the one year minimum term, this may not be the right program for you.
Can I invest in these notes inside my IRA? Roth IRA or other pension plan?
Generally yes. Please let us know if you have an interest in this and we can provide more information and help facilitate the process.
Can my corporation or LLC invest in these notes?
Generally Yes. Many of our investors comment this is one of the best ways to use the notes as the bank savings rates are generally less than one half of 1%. Why give money to a bank which is generally not creating any jobs, (most are downsizing), when we can show you the positive impact we are having? This alternative also has other advantages as it keeps business affairs and personal affairs separate if desired, and it can be a tax planning tool in some cases. If you wish to look at this we can help you determine if this is possible and how it can work.
Do I have to be an accredited investor? Are there any other restrictions related to investing in these notes?
These notes are private investments limited to accredited investors. These investments are only offered through investment professionals at this time, including broker dealers and registered investment advisors. Certain other restrictions may apply and these rules vary by state and country of residence. We can help you obtain the necessary information needed to determine which of these restrictions may apply. This site is for information only. Each potential investor should consult with their investment professional and discuss how this may fit in a diversified investment portfolio.