If you want to locate oil and gas royalty buyers in North Dakota it’s not hard. A quick google search will show you hundreds of websites offering to buy royalties. However, you should proceed with caution! There are a lot of shady people out there who take advantage of royalty owners. If you want to sell royalties for the highest price you need to be careful. We are going to show you how to locate the best oil and gas royalty buyers in North Dakota.
Type of oil and gas royalty buyers in North Dakota
There are a few different types of oil and gas royalty buyers in North Dakota. These are the types of people you could encounter if you were to sell royalties on your own. It’s important to understand who are you talking to. Some of these oil and gas royalty buyers in North Dakota are going to try and take advantage of you. With the information below you can avoid selling below market value.
Low Ball Offers – When you do a google search for oil and gas royalty buyers in North Dakota, you’ll find a very large number of websites. The problem is that most of these website are buyers who make low ball offers. They know that most mineral owners get tired of searching. They also know you aren’t sure how much your property is worth. They will make a low ball offer and put pressure on you to accept it. Out of confusion and frustration, many mineral owners will accept an offer far below market value. Don’t fall into this trap!
Flippers – A very common tactic is for people to set up a website and pretend to be a buyer. They have no money and no intention of buying your property. Instead, they will tell you they are a buyer. They are basically lying right to your face. They will get you to agree to sell your property for a set amount. Let’s pretend it’s $2,000/acre. Then they get you to sign a contract where they will purchase your property for $2,000/acre. They turn around and immediately get the property in front of a real buyer who is willing to pay $3,000/acre. They simply assign the contract you signed to the real buyer and they make $1,000/acre. That’s like paying a 50% commission! Ouch! The issue here is that you won’t even know it happened until the last minute. When you sign the final mineral deed, which actually transfers the ownership, the name on the deed will not be the person who you were talking to. The real buyer will have stepped in to purchase the property.
Wealth Individuals – There are a number of oil and gas royalty buyers in North Dakota that are simply wealthy individuals. These types of buyers usually pay very fair prices. They usually have a history of working in oil and gas. These types of buyers rely on reputable mineral rights brokers to find properties so it’s very difficult to locate them directly.
Private Equity/Hedge Funds – Another one of the oil and gas royalty buyers in North Dakota are private equity or hedge fund backed buyers. These are the buyers you really want to be talking to. They have the deepest pockets! They have a very long term outlook and lots of cash so they can afford to pay the most of anyone. Once again, nearly all of these types of buyers do not have websites. They find their deals by going to through a reputable mineral rights broker.
Mineral Rights Brokers – Working with an established and reputable mineral rights broker is the best way to sell royalties. We recommend US Mineral Exchange. The reasons is that by listing your property at US Mineral Exchange you will get you property in front of thousands of oil and gas royalty buyers in North Dakota. These buyers will compete against another another which drives up the price and ensures you get the most money. By listing your property at US Mineral Exchange you will avoid low ball offers and flipper who take advantage of you. In addition, you will get access to wealth individual buyers and private equity/hedge fund backed buyers. These are the buyers with the deepest pockets. We recommend US Mineral Exchange because they handle the entire process for you from start to finish. They will ensure everything goes smoothly and that you get the best possible price.