I’m considering investing in Eckard and would appreciate any feedback from current investors.
They shared what seems to be a strong track record but I’m not sure if the 15-20% upfront commission is competitive or if there are better options for someone wanting a diversified, passive portfolio of mineral rights.
How much money are they trying to raise for the fund you are buying in and what % of it you looking to buy in at? Im not sure what you mean by the 15-20% of the upfront commission? Assuming thats what they get when the fund closes out and the minerals are sold in a few years? Its a bit high, but not outrageous.
Run. Go put that money in a Vanguard fund and thank me later.
If you like overpaying for minerals, they are a great option…
Is there somebody you’d recommend instead that offers mineral rights packages?
I’ve not reviewed an operating agreement yet but it was explained to me that if they purchase the mineral rights for $10m then they would sell the package/fund to investors for $15m. After that they manage the rights for no additional fees.
They claim that because of their size they are able to buy at discount vs. smaller sponsors so therefore the actual markup is not much compared to buying the rights individually or from smaller sponsors but that may be hard to substantiate.
They are one of the only sponsors I could find thus far that had a fairly extensive track record which they were willing to share but they are a little salesy so was hoping someone could vouch that they are not the JD Byrider of mineral rights or that there’s not a better option.
If you want a solid portfolio of mineral assets at a fair valuation with ample liquidity, I think Dorchester Minerals ($DMLP) stock is the best way to get this exposure without being fleeced on a promote. Sabine Royalty Trust ($SBR) is also a good medium to invest through however it trades at a pretty high multiple relative to the rest of the industry.
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