Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on February 17, 2015 at 10:11

There are just as many, if not more, instances where the 1995 seller comes out ahead.  It depends on location and the luck of the draw.  Blanket statements to sell or not to sell should never be accepted with any level of confidence without knowing the details of the mineral interest.

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Permalink Reply by William Howard Pritchartt on February 17, 2015 at 12:05

Now and always as before, I agree with Skip Peel in his wisdom in every one of his posts I have ever read.  I believe he would also agree with me in stating that "Vision in hindsight is always 20-20."

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Permalink Reply by Henry on February 18, 2015 at 1:34

RBW,

On Jan 1, 1995, the S&P 500 Index was at 500.  It closed 2014 at roughly 2000.  Four times higher.  And I haven't included dividends.  If your cousin was a reasonably prudent investor, he could have turned his $15k into $60k.  So his deal doesn't look too bad to me.

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Permalink Reply by tc on February 18, 2015 at 2:11

Including dividends, the S&P is up around 550% since 1995, since we are playing 20/20, they plunk the $15,000 into Apple shares and is now worth around $1.5 million, or they had life saving medical treatment, priceless.

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Permalink Reply by Skip Peel - Mineral Consultant on February 18, 2015 at 2:21

A couple in their thirties sold a one half interest in the 50 acres they lived on.  With the $150,000 proceeds they paid off the mortgage on their land and house and one went back to college to get an advanced degree.  It turned out that their minerals in the Logansport Field were Tier Three and no well was ever drilled.  In four years, if no well is drilled, the half interest they sold will return to them under LA law of mineral prescription.

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Permalink Reply by Jesse Joyner on February 18, 2015 at 2:41

Yep, those mineral buyers are such honest and good-hearted guys, aren't they. But we all know they're really dumb fools to invest their money in such tax havens. How can such idiots make any money buying minerals from smart landowners since such constant royalty payments, year after year, mitigate the lump-sum big tax bills and avoid capital gains, as happens with equities.

Dumb mineral buyers. They don't know what they're doing, even when they're working in teams, bidding down the value of whatever mineral location/estate via the Net or door-to-door.

Stupid Forest Gumps.

Yeah, any dumb fool can take a lump sum of cash and bet it at a casino or put it on a horse in the stock market and make beaucoup returns.

No body with any brains would want to take the risk of holding their minerals for the long term. Makes no sense whatsoever. The big payday is the only way to go, for sure. 

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Permalink Reply by Bobi Carr ("parker") on February 18, 2015 at 5:09

I sold some of my mineral interest several years ago.  It was a good decision for me at the time.

Some people with tell you NEVER sell your minerals or NEVER sell your property.  What they fail to understand is that different people have different needs and objectives at different stages and circumstances in their life.

Do what is BEST for your family either way.  And don't forget to count your blessings.  Unless you purchased the property with the sole intent of collecting on the mineral interest as an investor, the minerals are just lagniappe.

Like some people who were advised to hold out for more lease money, what is a "hot" mineral area today could easily turn into a less valuable one tomorrow.

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Permalink Reply by Jesse Joyner on February 18, 2015 at 5:24

When you say you sold minerals, Parker. Was this some min. rights that you had bought as a speculating mineral buyer and later flipped to another mineral buyer; or was this some un-severed rights that came along with a tract of land that you had speculated in before the HA cat was out of the sack?

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Permalink Reply by Bobi Carr ("parker") on February 18, 2015 at 5:51

I sold several tracts of mineral interest AFTER the so called Haynesville cat was out of the bag.  Back then people seemed to be SURE that the Haynesville was a TIGER.  Seems like you have deemed it correctly as a little kitty cat at the moment.

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Permalink Reply by Bobi Carr ("parker") on February 18, 2015 at 7:36

I wish that I had sold every bit of mineral interest that I have.  The prices were much better then.

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Permalink Reply by Jesse Joyner on February 23, 2015 at 9:11

Do you still want to sell your minerals? How much do you want per acre, Parker? Where is your land located?

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Permalink Reply by Bobi Carr ("parker") on February 23, 2015 at 15:58

I want what I could have got five years ago when lots of folks were advising to NEVER sell your minerals.  

I don't believe the return from royalties will EVER be what I could have gotten back then.

I would advise anyone to be careful of advice that they get from people they don't know advising them anonymously.

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