We can’t advise you on your financial decisions, but we do know one thing: In general, if someone wants to buy your minerals, it’s because they think they can make a profit. So if you get an offer for $100,000, you can be sure that the company making that offer thinks those minerals are worth more than $100,000. That’s how this business works.
So knowing that, why would anyone sell? Usually, people will sell for one of five reasons:
A bird in hand is worth two in the bush. Many landowners would prefer the sure thing of $100,000 today than an 75% chance of $200,000 in the next five years. We can afford to take those risks because we have a whole portfolio of investments, but not everyone can or should.
Diversifying Your Portfolio
Don’t put all your eggs in one basket. Many landowners don’t like having most of their wealth tied up in one asset. If you wouldn’t invest $100,000 in a single stock, you shouldn’t hold onto a $100,000 property. Instead, landowners like to sell their property and diversify their investments to spread the risk.
Get Cash Quickly
Future profits don’t meet present obligations. Some landowners simply want money today, rather than waiting five years. Maybe they have an expense, but many simply want some extra money to enjoy a vacation.
Mineral management is a headache. Mineral rights can be lucrative, but they can also be an administrative hassle, especially when it comes to estate distribution or paying taxes. We have a team devoted to managing minerals, but most landowners don’t. So many want to simplify an estate or the administration of smaller properties by selling and reinvesting in simpler assets.
A Better Value for You
They can sell their mineral rights for more than they are worth. As strange as this sounds, you might be able to sell your minerals for more than they’re worth to you. That’s not because we’re foolish, but because we have expertise, connections, and leverage that allow us to maximize the value of minerals. So while it might only be worth $80,000 to you, they might be worth $120,000 to us. So selling at $100,000 is a win-win.