Why Sell My Minerals?
Mineral rights in North Dakota can bring significant cash windfalls. And when oil and gas land leases are hot, a lot of money is thrown at them and much of it is highly speculative. Meaning that the buyer of those mineral rights might be buying something that will never produce any income, or not as much oil production or gas production as what was paid for the mineral rights. It’s a huge gamble buying mineral rights. By selling your mineral rights you can earn a large sum of cash at once and hand over your risk of unstable long term financial security.
Questions I should ask when contemplating the sale of my mineral rights?
- What is the risk of NOT taking a large cash payment for a sale of mineral rights that might be worth far less (or even worthless), as time goes on?
- What are the land owner’s financial needs?
- Is cash in hand today worth far more than money that might take decades to receive?
- Should I monetize my mineral rights and take a large payday while I’m still alive?
- Are the oil and gas prices going to stay where they are over the course of several years?
Over time, some purchases will pay off for us within a reasonable amount of time but for some, it will take many years or even decades. And for some sales of minerals rights, we will never receive anything back. But we spread our risk over many purchases over thousands of acres that we buy.
A key reason that some people elect to sell mineral rights is the time factor. The length of time that it might take for them to receive a significant amount of money can take decades. Cash payment for your royalties is enjoyed as soon as a sale of mineral rights closes. Cash money is a sure thing, whereas the oil and gas business can be very unstable. By selling, you are handing over your risk to the purchaser and enjoying a nice payday to use for debt, education, vacation, family and personal expenses.