“The hand of the diligent shall bear rule: but the slothful shall be under tribute”
Proverbs 12:24
This is a passage I live by. I am reminded often of how tempting it can be to take the easy road. Very often the easy road appears to have less complications, have less work and deliver faster results. However, over my years, I have learned that I nearly always appreciate the road less traveled more and in hindsight thankful I took it. The passage above reminds me that there is work to be done.
How does this relate to selling royalties in Divide county North Dakota?
On countless occasions I have tried to persuade royalty owners to consider getting help when selling their interests. Most of our readers recognize that they know very little about selling mineral rights but even with that, some will forever be “do-it-yourselfers”.
Regardless of whether you recognize you need help or you are a “do-it-yourselfer”, you must work hard to maximize your profits. If you fail to do any of the following steps, I can almost assure you that money will be left on the table; your money!
Recommended Steps –
Document Preparation – Gather up all the available documentation you have on your property; Mineral and Royalty deeds, Lease agreements, and last 6 months check stubs. Have these ready to present to buyers interested in your property. Additionally, you will want to know the unit size and how many net mineral acres you own (inside and outside the unit)?
Research – What type of well are you being paid for – Horizontal or Vertical? Is there potential for additional wells on your property? Who is the operator and what are their plans? Have there been any new permits filed? What about the surrounding area? Is there activity and if so, how much? How many rigs are running in your immediate area?
Make your contacts – You must reach out to hundreds and hundreds of royalty buyers. Countless times we have seen buyer after buyer offer several years’ worth of royalty revenue and they all seem to be in the same general pricing range. However, we very often find “that one buyer” who sees some additional potential or is very keen on a particular area and they literally blow out the competition! You must find this buyer!
Understand the documents – Once you have found that one buyer, you will be presented with an offer or a purchase and sale agreement. Make sure you understand the document and the person you are dealing with. We have seen countless failed deals because the documentation presented to the seller was not on the up and up, wasting the seller’s time or worse locking them into a deal they did not fully understand.
The four steps above will be critical when selling royalties in Divide County North Dakota. They are pieces to a puzzle that must fit together in order to maximize your sales price potential. With that, we have provided a very simple royalty calculator to provide you a general guide on possible sales price values. Keep in mind this calculator will provide you the expected range of offers you are to receive. It will not provide you what “that one buyer” will pay! You need to find them.
Questions?
If you have further questions, we are here to help. Clearly step 1 is something you will need to work on independently, but we have the tools and the contacts to assist with the rest of the transaction. Additionally, for step 3, we highly recommend US Mineral Exchange. They have the thousands of industry contacts already in a database and will market your property, saving you time and most often increasing your sales price. The best part is there is no listing fee and no out of pocket expenses, ever.
