Mineral rights are defined as the property rights to exploit an area of land for the minerals that it harbors. Buying mineral rights or royalties is a highly profitable investment if done correctly. We’ve created this quick guide to help you understand the purchasing process, however, the best way to learn about how to buy mineral rights or royalties in the United States would be to talk to an expert at Ranger Minerals.
Find Potential Mineral Rights Sellers
Finding the right seller for mineral rights or oil and gas royalties is often the hardest part of the process. There are few resources, such as Mineral Owners, specifically for Texas that breakdown land by county available for oil and gas investment. At Ranger Minerals, we have a strong portfolio of cash flow properties,
Once you have calculated the percentage of the royalty you would like to own, you can begin to contact the mineral rights owner with offers to purchase. Due to the highly profitable nature of oil and gas royalties, buying mineral rights can require a Marlon Brando-like proposition of an offer that cannot be refused. If the acquisition is particularly high, the purchasing process may start with a declaration of interest, rather than a valued offer. You can skip the hassle of finding and bargaining with mineral rights owners by working directly with Ranger Minerals.
Verify and Strike a Deal
The response rate for mineral rights and royalty offers is very low. However, once you begin speaking with an owner, it is best practice to verify the revenue stream by asking for the past few months of royalty stubs. Of course, if you are working with Ranger Minerals, you will not have to worry about low response rate or verification, as each property is pre-vetted and our process is fully streamlined. If all looks well and good, draw up the contract and sign the agreement.
File the Paperwork
Once the deed is signed, the paperwork must be filed both with the local courthouse and the existing oil company. If you are buying mineral rights independently, it is crucial to have the appropriate legal council to approve and verify the legitimacy of all of the paperwork. Once everything is official, you should begin receiving royalty payments in as little as three months.