Mineral Rights

Covering Some of Your Mineral Rights Concerns

Posted by on Oct 10, 2018 in Mineral Rights | 0 comments

Discovering you have significant resources on your land can be wonderful, but it also leads to a major burden of new responsibility. Do you sell or wait? Do you try to become an expert in the market and get the most you can or do you hire an expert to help you make the best deal? Does the best deal even matter to you?

These questions can, in the short term, turn a great discovery into an extra level of difficulty you didn’t need. To help you get from discovery to the satisfaction of making the right choice, here are a few points to consider in the aftermath of finding out you have major mineral resources on your land.

Work with experts

The simplest way to make sure you get a good deal is to hire an expert to look out for your interests. As mentioned directly below, it’s hard to become an expert overnight, and if you are worried about making the right choice, and you don’t want to make the tough decisions alone, getting a mineral rights’ expert can help. Find one that has good qualifications and charges a fair rate.

Don’t overestimate how much you know about the market

This is a common mistake. You may want to wait out the market until it hits a big high, but be aware that predicting markets is incredibly difficult and comes with significant risk. You are just as likely to see prices decline as rise in some circumstances.

Consider how much you need the money now

Are you in a financially stable position or could you use income quickly? This is perhaps the biggest question you should ask yourself. If you can afford to wait, then you can choose to do so or not. If you can’t, don’t put your mineral rights income at risk.

Consider the long-term for your family

This point is often missed by those who discover they possess significant mineral rights. You never know what tomorrow brings, and that means you need to know what position you’ll leave your family in if something happens to you. As The Mineral Auction points out, if you leave mineral rights to your family, they can be tied up in probate court or in a trust for a significant period. If they need income after your passing, it may not be possible to get it for a long while.

Once again, it all comes down to whether your family is in a good enough financial position that they can wait to receive the rights and wait to sell or if they’ll need that financial boost immediately.

Trust your gut

No one has the right answer to these questions but you. You have to trust yourself and your gut. Is it right to sell? To hold off? To work with experts? To put rights in a trust? Only you, ultimately, can make those choices, and the best way to make them is to thoroughly consider your position and trust your instincts.

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