Replies to This Discussion

Permalink Reply by Farmer on January 11, 2011 at 10:06

I personally would wonder why anyone would want to sell part of their royalty. Someone is not going to offer to buy your royalties and not expect to gain something from it. I am of the opinion if they want your royalties, they know something you don't know. I would much rather keep 100% percent of my royalties than to share.

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Permalink Reply by S.H.M. on January 11, 2011 at 11:18

I agree. Keep what is yours. Wait it out.

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Permalink Reply by Jack Blake on January 11, 2011 at 11:41

Jack Blake got a letter a few months ago offering 6k per acre for 100% of his royalties.  Jack Blake says do not sell any of your royalties unless you are in a nine line bind, and if you must sell then get input from the GHS experts. 

$1500/acre for what percentage of your royalties?

Jack takes back his previous statement!  DO NOT SELL YOUR ROYALTIES NO MATTER WHAT CRIED JACK BLAKE!

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Permalink Reply by Linda Whatley on January 11, 2011 at 12:28

Good advice........ never sell your royalties!

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Permalink Reply by The_Baron on January 13, 2011 at 4:54

I disagree. There are times when selling royalty makes total sense. You have to make an educated desision on what is worth more, a known amount of money now or an unknown amount over time (or no money for that matter, especially outside of resource plays like the HA)

 

What if selling royalty could pay off your house, pay for college, or even medical bills. What if you are old and have no heirs? (or just don't like em much?) What if it meant being able to travel the world while you are still young, maybe retire early?

 

Of course the individual buying royalty is hoping to buy at far below what it could pay, no one in there right mind would buy royalty without hope of making money.

 

Thats what is cool about buying or selling royalty and minerals though... you can just sell part of them, and have your cake and eat it too.

 

Besides, you never know, yours may be the well that blows out or is in a dry spot... or it could be a gusher.

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Permalink Reply by smith1 on March 18, 2011 at 7:01

I agree, my dad is elderly and in bad health and wants/needs the income now, so he plans to sell his. It just depends on the situation. 

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Permalink Reply by Oil Guppy on January 11, 2011 at 14:17

I'm with the never sell your royalties crowd.  My only exception to this would be 2.5 million for everything.  It's kind of like my Zillow "make me sell price". 

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Permalink Reply by Bill R on January 11, 2011 at 14:36

We're continuing to receive offers to purchase all or part of our royalties as well. Most seem to be very lucrative, but I'm like some of the others... if they are offering all of this for just a percentage, "what do they know that we do not know"?

Of course it could be like playing Texas hold-em, their offers are just a bluff and my hand will end up sucking in the end...

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Permalink Reply by Linda Whatley on January 11, 2011 at 15:03

On second thought, I have to agree with Bill R.  When they start dangling the "BIG Bucks" your way, it is hard to resist.  And, depending on your situation (health, age, family, financial, etc.), it might be better to sell and have use of a large amount of money right away instead of waiting for it to come in slowly.  .....   So I guess It all depends on where you are in life.   ......   I hope everybody makes the best decision for their situation! 

 

Good luck to everyone!

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Permalink Reply by BirdDawg, plain ole' idiot on January 11, 2011 at 15:30

I think one very important part of this discussion is missing.

Renee, where are your minerals? That is the most important consideration pertaining to the value of your minerals.

And your personal situation has everything to do with whether or not you want to sell a part (or all) of your minerals. You need to do what is right for you. If you do sell some, make sure you get a fair price. 

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Permalink Reply by king john on January 11, 2011 at 23:41

i have called a couple of these companies before, just for the sake of entertainment. i got the same thing both times. the offer one receives in the mail is very much like a car lot bait and switch. when you talk to them the first thing they will say is " where are your minerals located  so we can calculate you an offer" i say " you sent me an offer, don't you already know where they are and that is how you calculated my offer?" this will go on and on. the fact of the matter is the offer in the mail is not "real". it is just a teaser to get one to call in. i will end by saying that despite what the letters say, neither of the companies i called were interested in partial interest, they only wanted to buy the entire interest. 

kj

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Permalink Reply by ELLIS HUGH on January 12, 2011 at 3:44

RE: the fact of the matter is the offer in the mail is not "real"

 

King John:

 

This is true.  Some companies mail 'general letters' to everyone within a specific area of interest and then research and evaluate individual tracts if an owner is interested.

Some offers are real (and their money is real, too).

 

Renee,

 

It is impossible to determine if $1,500.00/acre is a reasonable offer without knowing where the minerals are located(or your royalty on lease). Definitely not even close to ball-park if within the Haynesville Shale, but may be a 'fair price' in other areas.

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