Sometimes life can take an unexpected detour. However, that detour may also be positive. That is what we feel happens here at H&M Land and Mineral when our mineral rights buyers make purchases from mineral rights owners living in such states as Ohio, Pennsylvania and West Virginia.
Reasons for Selling
We have found here at H&M Land and Mineral that most mineral rights buyers relinquish their rights to improve their financial condition for one of three main reasons. These reasons often include:
- Paying off a mortgage on a home;
- Obtaining the money for a child’s education; or
- Receiving money for retirement.
Owners also like the peace of mind that comes from knowing that they have the cash and are no longer are holding onto just the rights. In order for mineral rights owners to feel confident about selling their rights, we at H&M Land Management sit down and speak to customers about their mineral holdings and review the land’s potential worth and related risks.
Is it a Sure Investment?
Here, at H&M Land and Mineral, we know all too well about risk. It is most certainly true that a mineral property can be quite profitable, provided the risk is rightfully managed. While risk management is the key to profitable investing, the owner must feel like the money he will receive will indeed be a sure thing.
Make Sure You Know What You Are Doing
Mineral rights allow you, as an investor, to consider a number of criteria when making a decision to sell or retain the rights. Therefore, make sure you know what you are doing when taking care of the unique investment.
While it is true that some mineral rights holders will reap substantial monetary rewards when their land is mined for the minerals, in reality, most people never see their land mined nor any accumulation of wealth in this respect.
That’s because the oil and gas industry is a speculative field. The quick fall and rise of natural gas prices mean that when the prices are rising, the formation of leaseholds, at the same time, is happening aggressively. However, prices can have both a meteoric rise and fall. Therefore, when a development suddenly ends, it is referred to as a boom bust event.
What’s more, mining companies may not place the property of a mineral rights owner inside a drill unit for 5, 10 or even 15 years from the time their property is leased. Therefore, it is not a bad move to stop the wait and go ahead and sell your rights immediately.
We at H&M Land and Mineral turn your mineral rights holdings into cash in a quick and expedient amount of time. Risk management can turn into quite a waiting game if mineral rights owners don’t act quickly to receive the money they need.