With publically traded royalty partnerships (Viper, Kimbell, Black Stone, etc…) gaining popularity, I wanted to raise the question when is it beneficial to sell mineral rights in exchange in buying into one of these funds? I understand that you give up control and concentration when selling minerals but in return you get ownership in a diversified pool of acreage and in some cases (like Viper) prime acreage positioned for the drillbit.
Does anyone have any thoughts on this? What are the trade offs? Can you 1031 into these funds? Anything I’m missing?