Reliance Wealth Advisors

He is a cheat. I invested $ 50,000 in December 2009 with the genius and so far have received $ 4800 back in interest and principal. He is a great talker but that is it. He will take you for what you are worth with out any concern about you. Don’t go through what I went through with him stay away.

The worst investment I have made in my life was in Oil and Gas production with Bruce Soltani/​Reliance Wealth. If you are reading this you are likely considering investing with Bruce Soltani in an O&G venture. I share my story so you won’t wind up with the lemon that I ate.
To start-​the bottom line. ¹¹⁄₀₉ I invested $ 100,000 in 2 O&G projects under the guidance of Bruce Soltani.55k in a project called «Gulf South”(GS), 45K in project called «Texas Energy Holdings» (TEH).
As of ⁸⁄₁₁ I have recieved $ 450 from GS,$ 4700 from TEH. 4.7% of my investment
about 2yrs.
Here is the «pitch» that got me —
1.Great tax advantage — don’t pay tax on 85% of the $ 100K.
2.10%-15% per year coming out.
3.Counting the tax avantage it’s 5 – 7 years to the point where it’s profit.
4.The oil runs out around 15 – 20 years but years 7-​end are clear profit.
5.I knew it was not guaranteed but I WAS told that the wells were proven and more likely to perform than «exploration» — these were «safer» wells.
2 years of hating this investment more with each pathetic check, I relay these 5 ideas from my situation.
#1. The idea of tax advantage is the most ridiculous. True, the year you invest you write off the money. However, as the money comes back every cent is taxed. There is a reason for the writeoff — it’s because you are part of a startup business. If you invested money in a truck company and the money bought trucks you write it off as a real expense. In this case you are paying for the setup of physical wells — your money goes to on capital expenses. Sounds great right? Wrong.
You get the money back as the oil sells and you pay tax on every penny of the sale. Even though I made less than .1% percent on GS last year that money was taxed. I am not a tax expert but to me if I pay taxes on the money as I recoup it then I need to recoup 100% to be at square zero.
I had $ 100K excess income in 2009. If I kept it I would have paid 35% taxes and walked with 65K.
I invested it in O&G, (I gave it to someone else). They pay me back over time. I didn’t pay tax on most of
the money comes back it’s income. If I make 10k a year I will pay $ 3500 in tax on it. accordingly, it takes 10 years to get back to square zero if they are paying 10%.
Not an accountant but until someone explains this any other way, until I am shown where I don’t pay tax as it returns — the above is my reality.
#2.Not seeing anything remotely like 10−15%. I have been paid $ 4700 of my $ 100K and it has been 22 months. 4.7% TOTAL in nearly 2 years.
#
discussed above this is smoke and mirrors. At 10% per year it would take 10 years.
#4.The kicker-​When the wells go dry you have nothing, zilch. While they do tell you this up front it doesn’t start to get a bit more daunting until you see the pathetic returns like I have and realize that this could be a complete and total loss at the rate it is going.
#5.I knew it was a risk. I had a windfall year and was looking to save taxes. I blame me. All I can do is tell others that it can go horribly wrong and that the basic pretexts are completely erroneous. Wish I gave it to charity or gone to Vegas. The «Proven» wells have proven to not produce.
Important to understand, the 4.7% over 2 years is NOT 4.7% interest. It is recouping 4.7% of the money which I paid for a share of something which is disappearing. In other words — there is NO pricipal here. I do not have my investment plus 4.7% — I have 4.7% toward being paid back 100%.
To that I throw the last fallacy in this bucket. $ 65,000 (what I could have invested after paying taxes) at 4% for 17 years compounding quarterly = $ 127,869. I am being kind to consider 4% as a reasonable rate for a high net worth investor. At 6% it’s $ 179,346.
The greatest insult is the dribble of pathetic checks. This month I got a $ 70 check from my $ 55K investment.
One year into it the investors were treated to conference call trying to explain. GS put very technical but nice sounding people on to explain in expert language how it was about to turn around — we would be cashing in within 5 years. Sounded great. 10 months later a $ 70 check.
TEH organized a call which was OFFENSIVE. The person on the call was indignant and pompous as if we had wronged him. Posturing about how his company had never failed and how he had provided us with quick cash flow and that there were hickups which would be corrected. But the attitude was gross. Someone should talk to him about investor relations.
Anyhow — sound like a great time? I had high hopes. Every estimate they have made has underperformed and underwhelmed so all I can think is that the idea that this «investment» will «produce» for 15 – 20 years probably means that I will get checks that will pay my cable bill for the next 10 – 12 years. I’m projecting based on evidence to date. Hey, it may get better. I may be an O&G Billionaire in 5 years. Not holding my breath.
My advice? stay away.