Has anyone come across a few particular leasing/buying companies that make ridiculous promises, demand leases without paying for them, and then go radio silent until it best suits their interests? It has become incredibly frustrating and I have never been disrespected in such a way. Pro Mineral seems to have never learned the golden rule, and thats putting it politely, but I am hoping to avoid others. Any tips on who to be careful with would be appreciated.
When I get an offer, I do several things to see if the buyer is legitimate.
-I look them up on Bizapedia and see how long they have been in business. No problem in being a new company, but I am look for the owners to see if they have experience and their BBB rating.
-I look up the owners on LinkedIn or other sites to see what their training and background is.
-I look up their website. Are they willing to say who they are? Who is funding them? What do they do? etc. If they are not willing to reveal who they are and how they are funded, then I will not deal with them.
-I ask if they are willing to put 10 percent of the purchase price in an escrow account as a good faith measure. What third party is holding that escrow for them? Attorney? Accountant? I want a PSA in writing and an agreement that the remainder of the payment will either be paid to the escrow account and my third party who is holding my lease will turn it over when the check clears or it will go to my direct direct deposit account before my third party will be handing over the lease or deed.
There are ways to protect yourself.
Unfortunately, the behavior you have described has been common from many companies. Good, reliable companies will be upfront from the beginning. On a side note, some companies have a certain amount of money to spend in a certain area within a certain time frame. Once they have accomplished that, they move on and may not return calls. Their time is precious.
1 Like
Thank you. It is sad that some people lack empathy/ethics because I am sure some landowners that may have financial issues and are elated that any company will not only pay them a bonus, but also get said landowners excited about all the future money to expect from production.