So you own mineral rights, and you think you are going to strike it rich with oil exploding out of the ground. While this may happen in some cases, odds are, you are really just sitting there wondering just what to do with your oil rights. You don't have the tools to dig for the oil yourself, nor do you have the time. Here are 3 reasons you should sell mineral rights.
They may take a long time to pay off
Are you waiting for your land to suddenly become the most prized area in your location? You hear a new gas plant is opening up in the area and you know the company is going to beg for your mineral rights. The truth is, you can't wait for people to come to you and plead to stake claim to your mineral rights. Many building contracts for these types of companies last for several years, and digging for oil and gas is the last thing these companies do. If you are waiting for your mineral rights to become a hot commodity, you may find yourself twiddling your thumbs for a long time.
Your best option is to sell your mineral rights through a real estate agent and allow them to take a commission off the final sale. This way, you aren't sitting on mineral rights for years waiting for someone to bite, you're getting cash now, when you need it.
You've no use for them
Unless you've rented out your land so someone can dig for oil and gas where your mineral rights are located, you probably aren't making any profit off of your asset. You may lease out your land, but the contracts only go for so long. You also never know when the minerals will run out, and you could be left with a lot of acreage you don't use and don't really want. Save yourself the gamble and sell the mineral rights you never use anyway. You'll be grateful you did, and grateful to not have to worry about the investment anymore.
You want to change your investment
Investing in oil and gas can be tricky, so selling your mineral rights now can leave you with plenty of funds to invest in something else instead. Work with a real estate agent to see when the best time to sell is in your area and use the funds you make to invest in electronics, technology, or your favorite company. You may find yourself more relaxed investing in something you enjoy, and can benefit from the profits that your mineral rights can bring you.
If you want to sell your mineral rights, talk to a real estate agent about the process. They can help you prepare your selling price and learn the market to sell to so you can liquidate your mineral rights quickly and enjoy your profits sooner.
Share6 November 2015
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
