Looking for mineral buyers?
We’re going to tell you everything you need to know about mineral buyers. We’ll explain how to find mineral buyers, red flags to watch out for, and when to use a broker.
How to find Mineral Buyers
There are a few different ways to find mineral buyers.
You can do a Google search for mineral buyers. Do a search for “mineral buyers in Texas” or “mineral buyers in [your state]” to find mineral buyers.
Another common way that mineral owners find buyers is by receiving letters in the mail. Some of these letters are from legitimate companies. Others are flippers or bait and switch companies who will try and take advantage of you. It is fine to pursue these offers, just use caution and common sense as you work through the process with them.
Some mineral owners receive unsolicited phone calls to sell mineral rights. Use extreme caution when you receive these calls. These mineral buyers tend to be extremely pushy salesmen. They prey on mineral owners who feel pressure from a personal connection.
We are mineral buyers! If you are looking for mineral buyers, you found one! We can provide you with a same day quote for your mineral rights.
Here are some common red flags to be aware of if you are looking for royalty buyers.
Offer in Writing: This should weed out a lot of buyers. Any legitimate mineral buyer will be able to put together a formal offer in writing.
Option Contracts: If you see the word “option” or “assignment” in the agreements, run away. A mineral buyer who wants an option contract is not buying your mineral rights. Instead, they are going to put you under contract at a certain price. They will then find a buyer at a higher price and “assign” the contract to the real buyer.
Long Due Diligence: If your buyer needs more than 30 days to run title, this is a huge red flag. This means they are likely trying to flip the contract to someone else for a profit. The only exception is if your mineral rights are located in West Virginia.
Defined Ownership: There should be specific language that describes what the buyer is purchasing. Some mineral buyers will just state “all mineral rights in XXXXXX County”. This is bad for you. The PSA and Deed should clearly define what is being purchased and not include anything and everything you own in a county.
Full Warranty Deed: Be cautious of a full warranty deed. What this means is that you are personally guaranteeing what the buyer is purchasing. This means that if someone in the past gave away ownership, you would be liable for this. If you sign a special warranty deed, you only guarantee that you did not encumber the minerals yourself (lien, lawsuit, etc). Don’t do a full warranty because you can’t say for sure what someone did in the past.
Offer Letters: Be weary of offer letters in the mail. Some are legitimate. However, you need to follow up with the mineral buyer who sent you the offer letter and confirm the offer. Do NOT take the offer letter at face value. If they say something like, “we pay 60 times your royalty income” that is not always true. Follow up with the buyer and find out what they are actually offering.
The general advice to trust your gut applies when it comes to mineral buyers. If something feels off, trust your gut.
When to use a Mineral Rights Broker
We are mineral buyers who specialize in purchasing mineral rights that are valued under $100,000. These mineral rights are small fractionalized interests that many mineral buyers are not interested in purchasing. We provide liquidity (the ability to sell) to a small market segment that most mineral buyers won’t touch.
If the value of your mineral rights is greater than $100,000, we recommend using a mineral rights broker. The reason is that once the value is above $100,000, this opens to the door to a very large pool of private equity backed buyers. These buyers have deep pockets and they pay some of the best prices in the industry.
Once the value is greater than $100,000, you have left “do it yourself” territory, and you need an advocate on your side who can help you navigate the process.
If your mineral rights are located in Texas, we recommend Texas Royalty Brokers because they specialize in high value mineral rights sales. They will ensure you get the best price and help you through the process.
If your mineral rights are valued under $100,000, reach out to Fraction Royalty using the form below for a same day quote. We can get you a formal offer for your mineral rights quickly.
If you are unsure about the value, reach out to us and we can help point you in the right direction.