Investors always look for ways to maximize and diversify their portfolio. One potentially lucrative investment option is to buy oil and gas minerals. You have many different options available to you in this regard, but one popular method investors have taken notice of is mineral rights investing with an IRA. An IRA investment with oil and gas mineral interest is different from a typical IRA, yet still offers similar benefits. As with anything dealing with investing in the oil and gas industry, there are plenty of risks to go along with the potential rewards. Here are some of the facts you need to know about when it comes to IRA investing with mineral rights.
You Don't Have To Own Land To Invest In Mineral Rights
When investing in mineral rights, you don’t actually have to own the land. Investors can simply purchase the rights to the oil and gas minerals on the land. This can become tricky, since you are essentially sharing ownership of the land with the property owner. You would own the minerals found beneath the ground, while the property owner would own the land on the surface and anything built on it. It’s easy to see how this could become complicated once the actual drilling occurs, so working with an expert to iron out the details of the agreement is essential to protect your investment.
On a related note, rules and regulations are in place prohibiting the land owner from withholding access to your mineral rights. Often times, oil and gas companies will negotiate the necessary terms with the land owner to explore and produce the minerals below the surface.
Mineral Rights Investing Can Diversify Your Retirement Portfolio
The average person may not regularly buy oil and gas minerals to diversify their investment portfolio, but that doesn’t mean you shouldn’t consider it. Sometimes deals may be presented to you that are worth looking in to, especially when you see the potential long-term benefits. Mineral rights investing with an IRA also allows you to build a tax-sheltered income along the way to help boost and maximize any traditional retirement investment accounts you may have. If your IRA has certain restrictions on real estate and mineral rights investments, Eckard Land & Acquisition has partnered with IRA custodians to make investing in mineral rights simple.
Investing In Mineral Rights Can Be Risky
Some investments are riskier than others, but mineral rights investing is widely known as being near the top of the list when it comes to the risk factor. However, when you consider investments in the energy industry specifically, mineral rights investing is among the least risky investments. It is often compared to raw land real estate investing. And, the potential reward is much greater as a result also. When you’re exploring the possibility of buying oil and gas mineral interest and investing in an IRA, work with the experts to ensure all bases are covered and the risks associated with the investment are managed correctly. Mineral rights investing with an IRA is a great way to diversify your income, but it also requires a risk management evaluation beforehand.
Eckard Land & Acquisition helps investors understand the ins-and-outs of their mineral rights investing. Investing with an IRA is a popular strategy many investors choose to pursue, but it may not be the perfect option for everyone. Our goal is to help you diversify and maximize your portfolio, all while taking your own risk management into consideration. If you’re considering an IRA investment with mineral rights, contact us today to see how we can help.