Top Seven Things to Consider on Mineral Rights Leasing
Leasing mineral rights or investing in mineral rights is a great opportunity to gain a large return. But you need to do your homework to know the right way to make any investment. Oil and gas companies regularly contact people to encourage them to invest. If you go by their word, it could be really difficult to achieve your expected 1031 exchange capital gains. We know you want to maximize your benefits, so don’t take a wrong step or be trapped by acting too quickly. Read the points below to expand your knowledge.
Make sure they have not contacted any other members of your family. For a larger deal, the companies may try to involve many members of the same family. Beware of this and deal with the company as a singular representative for your family.
Do know with whom you are speaking? Know the person you are dealing with, whether he is an employee of the oil and Gas Company, a middleman or a broker. Ask multiple questions to ascertain their true identity.
If you own separate land tracts, you should demand separate oil and gas leases from the company. Simply put, this will increase your profit. The mineral field is a dynamic sector to be explored for a betterment.
4. You should keep all the papers for the lease work in a secure place. Keep all the related documents to your surface and mineral ownership safe, for example, deeds of trust, maps, wills, previous leases, mineral or royalty conveyances, easements, ratifications etc.
5. Search online for information on the parties who are involved in deal. Do not immediately jump for the lucrative 1031 exchange options. Beforehand search and try to collect more information about the contact person, the company itself, the geologic activities and follow along with the local newspaper near the property to learn more.
6. Try to research the wells located in the area. Follow the official web page of the State Regulatory Agency to know about the producing wells, names of the operation area and the permits of drilling etc.
7. Be nice to the oil and gas company. This is the hidden trick to get the highest 1031 exchange capital gains.
These guidelines will help you to get the best benefits from 1031 exchange options. Consult Ten31 Minerals for more information.