How to Buy Oil Royalties? – A Comprehensive Guide to Make the
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It never hurts to get paid more than the usual. With the changing needs, everyone needs some additional cash on hand to make ends meet. So, why not invest in something that can promise greater returns than the typical investment funds do. For this, you need to learn how to buy oil royalties?
However, before you step out on the edge and invest all your hard-earned money, you need to know that although the returns are huge, but the risk involved in the oil & gas business is even greater.
Here is a comprehensive and easy to understand guide on buying oil and gas royalties:
Before you even move to the first step, you need to keep in mind that you need to be an accredited investor. I.e. You must have earned at least over $200,000 in the last two years, each. OR You must have earned a combined income of over $300,000 with your spouse. OR You have liquid net assets worth $1,000,000 (Excluding equity in your main residence).
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1. The first step to buying oil royalties is to find prospective sellers who are willing to sell their oil rights or royalties. I.e. if the mineral rights are available for sale, then you can move on to the second step. To get help with this step, you can contact your nearby real estate agent who is well aware of the location and the properties, whose owners are receiving oil royalties. a. Note: The most rampant minerals for mining in the United States are oil and gas, found in these 10 states; Texas, Alaska, New Mexico, Wyoming, Utah, North Dakota, California, Oklahoma, Colorado and Louisiana. 2. The second step is to learn the state laws concerning mineral rights. It is better to invest in minerals when you know what you are getting into and whether there are any associated liabilities. If you have a real estate agent or a lawyer by your side, then you are at an advantage. 3. Next, you need to involve in cold calling your leads. Be prepared to face resistance from most, but you will likely hit a jackpot if you offer rational and attractive deals. Leaving a message is not a good idea, but if you cannot get through to someone and have left a message, try to be highly available to return the calls.
4. Send paperwork to almost all of the sellers because the response rate is really low when it comes to buying oil or other mineral royalties. The more active you are; the more chances there are of interest being shown in your offer. 5. Negotiate the deal once you received positive responses from your leads. Sellers are selling their royalties because they need urgent cash, so you have an upper hand in the process. 6. Draw up a mineral rights agreement and try to include fresh water, which can save you a lot of money. Take the help of a lawyer to draw the agreement. 7. Once the papers are signed, you have successfully owned oil royalties and the first check should arrive after the 3rd month of ownership however, bureaucratic issues can lead to longer waiting times. Uni Royalties Limited is one of the oldest and reputed royalty purchasers and sellers in the United States. The company provides a range of quality services exercising their experience and expertise. For more information on ‘how to buy oil royalties?’, www.howtobuyoilroyalties.jimdo.com
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