Why Sell: Education For Your Family

Tuition. Room and board. Books. Education is expensive and getting more costly every year. According to Forbes, the average cost of a four-year education at a public college is more than $28,000 a year and is projected to rise by about 6.5% per year. At the same time, a competitive education is more important than ever before to give your family members the best possible chance for a successful life.

With a large lump-sum payment from selling your interest, you’ll have the cash you need to pay for your family’s education. In fact, many states have college saving plans, such as 529 plans, where you can deposit your lump-sum payment and lock in the current cost of tuition or invest the funds in one of several options designed to match your risk tolerance and needs. Either way, when it’s time for college, you’ll literally have money in the bank to fund it. Giving your family members the best opportunity to truly achieve their potential is one of the best gifts you can give.

Selling has other benefits for you as well.

Financial Freedom

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:

  • Retire
  • Buy the perfect house
  • 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 can potentially benefit from long-term capital gains tax rates.

Reduce or Eliminate Debt

Most Americans carry some sort of debt—whether it’s credit cards, car payments, mortgages or student loans. Selling your mineral interest will give you quick and easy access to a lump-sum that you can use to pay off or pay down any type of debt. And because we’re well-funded, we can close quickly and get your money to you as soon as possible.

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 anymore, 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.