The goal of every mineral rights investor should be to sell their rights for as much as possible. Knowing the value of your oil and gas minerals can be a little tricky, but the good news is experts are available to help you sort through all of the data, trends and values. Having a basic knowledge of mineral rights investing is all that’s required from you as the investor, and these tips can help you gain that knowledge.
Your First Offer is Rarely The Best One
When you become a mineral rights owner, you’re going to frequently receive offers. While some of these may seem like a great deal on the surface, chances are there is language in the proposal that isn’t advantageous to you. Taking the first offer is usually never a good idea. The best way to maximize your oil and gas minerals is to evaluate multiple offers at once from numerous buyers, so patience is key.
Know The Value of Your Mineral Rights
Sometimes the amount an investor thinks their mineral rights are worth doesn’t equate the actual value. Many factors are in play with mineral rights investing, including the current market value. Just like investing in the stock market, there will be good months and bad months. Understanding this and adjusting expectations accordingly can help you determine the right time to sell.
Documentation is Essential
Anyone who wants to buy your oil and gas minerals will ask for documentation to prove ownership. These documents can include the leasing agreement, royalty check stubs, order for payment and anything else. The more documentation you have, the better the chances are of you maximizing the value for your oil and gas minerals.
You Don’t Have To Sell All of Your Mineral Rights
You may be in a situation where you need to sell your oil and gas minerals, but don’t necessarily want to sell all of them. There’s nothing wrong with selling a portion of your mineral rights to a buyer. In fact, some buyers want to only purchase a portion just to monitor performance over a period of time and then may make a higher offer for the remainder of the rights. Just keep in mind that selling some of your mineral rights is always an option.
Eckard Land and Acquisition always gets asked the question, “can you own mineral rights?” You don’t necessarily have to understand the ins-and-outs of oil and gas minerals to be a successful investor. You do need to work with the right experts to ensure you’re getting the most out of your investment, though. These tips should help you get started on your journey to mineral rights investing, but feel free to contact us at any time to learn more.