Buying Gas and Oil Royalties - The 6 Step Method Gas and oil royalties are a very productive and effective investment for medium sized investors. This is because, while gas and oil royalties may not require them to invest too much, they can still get a return of up to 12% to 30% depending on the land, contract and terms of the lease. This article means to help beginners understand how gas and oil royalties can be purchased. There are a few phases of buying gas and oil royalties. The first one revolves around finding a potential and suitable royalty owner who is interested in selling his or her rights. On paper, it might sound quite simple to find a potential royalty seller but in practice it is not so simple and in fact, can be quite challenging. There are companies that help in finding royalty sellers and have done great market research so taking their help is a good idea. Another way is to advertise in the paper and potential royalty sellers who are looking for a purchaser will contact you. Once you find one such royalty owner seller, the second phase is to solicit the seller and make him an offer to buy gas and oil royalties. Making an offer involves immense market research to know the percentage of royalty offered by royalty buyers or the rate of signing bonus. One has to make sure the offer is competitive. The next phase involves receiving queries from sellers and answering them. Once that is taken care of, the fourth stage follows, which is to perform an analysis of the offers made by various sellers who wish to sell their gas and oil royalties and mineral rights. The rate of response is extremely low, so if you receive a low response do not get disappointed. In fact, it is absolutely normal to get around 3 responses for every 1000 letters sent, which is one of the reasons it is important to send out letters to the masses and not just rely on a few royalty sellers. After that, the purchaser needs to send out the terms and conditions of the contract and the mineral deeds to the various sellers to see which one is ready to accept and comply with them. This phase also ensures that all the paperwork is carried out appropriately and involves a great deal of follow up with the different sellers too. In
this stage, it is also important to ensure that the royalty sellers who got in touch with you actually have ownership of the royalties. There are great chances of getting deceived in this industry and since the money invested is huge, it is even more important to be careful and cautious of scams and deceits. The last phase is about receiving deeds back from the seller and actually making the mineral rights purchase by paying the agreed amount to the royalty seller and filing the deeds of the contract according to set terms and conditions. Following these steps is all you need to successfully buy gas and oil royalties and make profits out of it. http://www.imfaceplate.com/buyingoilgasroyalty/oil-can-domore