How do you go about finding mineral rights to buy and what’s the process? Any pointers?
- You should be very careful about getting into a business if you don’t have some background in it. If you feel that you have some knowledge, then okay.
- You can buy minerals based on word of mouth of someone wanting to sell. However, that may not get you very far if you’re not in the oil & gas business.
- If you really really really want to buy minerals, and this money is not something that you need to pay your bills next month, then I suggest the auction sites, such as Energynet and MCee (midcontinent energy exchange). MCEE seems to be a more appropriate site for a novice. Both of these sites will have auctions on minerals for sale. They will show you if it is producing or nonproducing. If it is producing, it will show the recent paystubs for the well(s) in question. You will need to create an account to bid on these. I would recommend you watch or monitor the sales for a period so you can see what is going on.
- Now, and I really hesitate to say this, but prior to owning a rent house, I didn’t know everything and there was no way to read up on everything involved. But I learned by taking some lumps. You will take some lumps as you go along, so be very cautious about how much you spend. Don’t don’t don’t spend money you can’t afford to lose.
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follow-up. You should enlist or hire a landman or an experienced o&g lawyer in your first few endeavors.
There are 1,000’s of Oil and Gas investment scam’s around the United States at given times. Don’t be suckered into these. People get “tax right offs” that they didn’t intend to get, starting out. Me personally buying mineral rights are the best way to go. Once you buy them, if the title is good, then they are yours forever. A lot of it is speculation, risk and being lucky. I’ve bought mineral rights that I have had for twenty year’s and have never been able to lease. It’s sort of like buying lotto tickets, wishful thinking and dreams. There are millions of mineral rights, royalty interest and other related things that the “rightful ownership” of the title is no good. It’s a lot of risk and speculation and luck.
Not to be rude, but an absolutely horrible idea if you have no experience in the industry. You would need to hire a seasoned landman (10+ years) and an experienced engineer to run the numbers, neither are cheap. 90%+ of the private equity mineral groups have gone out of business in the last 10 years due to overpaying to acquire acreage.
Fair point, Bob. My thought was for the individual to buy small producing mineral interests that seemingly would have a 5 year or less payout.
I have no problem hiring the right people I guess my question is how to go and find them? I have several investments in real estate just not mineral rights
There are many professional mineral buying companies . Why not work with one of them?
Are the auctions generally a safe way to acquire rights? Any recommendations for people I should contact to make sure I don’t buy into a scam? a title search will be something I do regardless
J walker that’s what I would like to do but have no idea how to find a good one …. When I search it keeps giving me companies trying to buy rights any recommendations?
Possibly call and ask if they act as brokers to various investors, ie someone like you who wants to buy minerals.
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