About Selling Mineral Rights
Oil and natural gas mineral rights can be very valuable, but
risky investments. As a mineral owner, it is really important
to understand what you have, it's value and it's role as an
investment in your portfolio. Minerals are simply an
investment, and if you can remove any emotional attachment or
pre-conceived notion about your minerals, you'll be able to take
control of your minerals rather than putting yourself at the mercy
of unknown and uncontrollable factors.
Why you should work with Caddo
We are honest. We work fast and can close within a few
weeks. We spend time to educate you and want to help you in
any way we can - even if that means a deal doesn't close.
Contact Caddo for a FREE
evaluation of your mineral rights or royalty interest. You
can call us Toll Free at -
877-620-7717. You can also fill out the form
to your right or send us an email at
email@example.com. We really look
forward to talking with you and discussing your property.
After speaking with you, or reviewing your
property submission, we'll give you a call or email with a
FREE quote within a few business days. We'll
based our quote on any and all information you've given us, as well
as public information on your property. We also give you more
detailed statistics and information your property all at NO
Accept our offer and we'll close within one
to two weeks! We'll overnight you the
agreements, and we'll send you a cashiers check or wire money
directly into your bank account. We NEVER
use bank drafts!
Selling Mineral Rights - How to Decide?
Selling your mineral rights (or not selling) is a decision that
thousands of landowners face each year. Unfortunately,
landowners have been told for years by their ancestors to never
sell their minerals or royalty interest. While this may have
been wise in years past, today there is a good, efficient market
for mineral rights, and you can get a good deal if you're patient.
The firms (like Caddo) who are willing to purchase your
minerals have well diversified portfolios of mineral investments,
so they are willing to pay you a fair price for your ownership.
Selling or not selling your mineral rights really comes down to
need. If you need the money for immediate use (pay off high
interest credit card - pay for college - take a much needed
vacation - retire), then selling your mineral rights should be a
If you do not have imminent needs, then it comes down to
investment diversification and expectations. If you have
plenty of cash in the bank, and your minerals are an after-thought,
then you probably don't need to sell. If, however, you are
counting on your minerals as some form of future income, then you
should really consider selling all or part of your mineral
When to Sell Mineral Rights or Oil & Gas Royalties
- You have a high interest loan (credit card, auto,
- Need to pay for your children's college.
- You are relying on your Mineral Rights to produce
income for you. If you're in this situation, you should
really consider selling because Mineral Rights are not a secure
form of income.
- You need a vacation.
- Your investment portfolio is Mineral Rights
heavy. Meaning, your mineral rights or royalty interest make
up a significant part of your net worth. If this is the case,
you should consider selling all or part of your mineral rights to
- You and your family need to clean up estate
- You're tired of dealing with the tax implications of
When to NOT Sell Mineral Rights or Oil & Gas Royalties
- You have all the cash you need.
- Your health is great and secure with plenty of
investments/cash to cover any potential future
- Your investment portfolio is well diversified and
mineral rights are a less than 15-20%.
- If your mineral rights and royalty interest never
produce a dime of income, no problem at all.
Selling Mineral Rights - Talk to Caddo!
If you want to talk about selling your minerals, give Caddo a
call or contact us via the form on the right. We'll get back
with you shortly!
Introduction to Mineral Rights Law
In most states, mineral rights can be severed in part of whole
from the surface. This means that you don't have to sell all
of your minerals, and if you do sell the mineral rights below your
homestead, you don't have to move out!
Consider this -
1. In some states, severing of minerals from
the surface can cause a taxable event. Make sure and understand
your state's laws before you proceed. You can always ask us
by submitting the contact form to the right or giving us a call.
We're happy to help!
2. Minerals can revert back to the landowner
after a period of non-production. Again, feel free to ask
Caddo about this.
3. Selling your mineral rights can give you the
option to 1031 into a like kind exchange. This means you
could take the sale of your minerals and purchase a home or other
piece of real estate without paying taxes. Caddo can give you
some more information on this, but this certainly does not
represent any tax advice. You should speak to an accountant
for more information