The Six-Step Method to Buying Oil and Gas Royalties

Gas Royalty buyers

If you are planning to make a small to medium investment, we suggest you an investment in buying mineral royalties. The reason is that the returns from the investment are between 12%-30%. The other reason is that the small shop’s investment can also get into the business if they understand this business. This article is going to explain how the gas royalty buyers should go through this process. For the sake of simplicity, let us assume some names:

·  Firstly, you should consult legal advice that is related to royalty.

·   You should create and establish a legal entity with which you can buy royalties on your own, or create a partnership or a company.

·         You should obtain the required funding for buying royalties or have a war chest for the purpose.

Whoever has the ownership of oil and gas royalties this means they have mineral rights. There are only few cases in which it is not true, but in most of the cases oil royalties and mineral rights are interchangeable terms. Gas Royalty buyers after buying the royalties own the mineral rights. The phases of buying minerals occur in these phases:

  

•       Finding the people who own the royalties and are willing to sell them
•          Offer them a reasonable price in exchange of their royalties
•          Answering calls of the sellers inquiring about the deal
•          Making decision quickly whenever a suitable offer is available in the market.
•          Following up with the sellers and sending them the legal papers
•          Paying the royalty owners and filing the deed with the correct county courthouse.
•     Now we will discuss the details of the above mentioned phases:

Phase one:
This is an important part of the process. The biggest problem in the process is locating the mineral owners who are willing to sell their royalties. For this purpose you can check out division orders, these can serve you as a lead to locate mineral owners. Phase Two:  propose an offer to the owner that they cannot refuse.

Phase two: 
Make sure the royalty someone is selling you is real, and they are the actual owner of the royalty. Do a research for it and do it rapidly, before they change their mind or sell to someone else.

For more information visit our website:

http://www.uniroyalties.com/