The most important reason? Simply put, more control over your assets. Rather than waiting for small monthly royalty checks that can fluctuate and decline, with a large, lump sum payment, you receive financial freedom and so much more.
Learn how Dirk worked with Springbok to sell his mineral rights to help out his family members and pay off his mortgage.
Achieve Your Dreams
Everyone has something they’ve always wanted to do—if only they had the money. When you get your payment, you could:
- Buy the perfect house
- Invest in your family’s education
- Take that trip you always planned
- Start your own business
Take Advantage of Tax Benefits
With royalty payments, you have to report and pay taxes on them every year. By selling, you’ll simplify your tax returns because you’ll no longer have that yearly burden, plus you benefit from long-term capital gains tax rates.
Reduce Your Financial Risk
When you’re receiving monthly royalty checks:
- Your check amount is at the mercy of the unpredictable market price for oil and gas and the production capacity of the well—neither of which you can control.
- Mechanical or operational problems with production equipment can affect the amount of oil and gas that can be produced.
This is why the royalties you receive may range so widely. By selling for a lump sum now, you can ensure the amount that you receive for your interest. And because we’re well-funded, we can close quickly and get your money to you as soon as possible.
So if it’s so risky, why would we want to purchase the rights? We invest over the long term and buy enough mineral interests to diversify our risks so that we can manage in the event that one of our interest’s value declines.
Simplify Your Finances
By selling, you no longer have to keep up with all of the paperwork such as depletion schedules, division order files and tax records. It also reduces the amount of work involved with your estate planning. By liquidating your mineral rights while you’re still alive, you can distribute cash instead of dealing with dividing up property and monthly royalties.
Other Things to Think About
When you sell your royalties, you won’t receive monthly checks any more, but you will have a larger, one-time payment. If this seems like too big of a decision right now, or you’re just not sure, you can always sell a portion of your mineral interest. This will help reduce your financial risk and provide you a lump-sum payment, but you’ll still have some monthly royalty checks.