How to Get the Best Value Investing In Mineral Rights
While investing in mineral rights, you may have some obvious questions whirl up in your mind, especially pertaining to the mineral rights’ value. Before dealing with the mineral rights, you should know the value of them. We at Ten31 Minerals will provide you with information and guidance to prevent you from being misled.
To be honest, it is impossible to fix the exact value of your mineral rights. It is variable. Before knowing about the values of mineral rights, you need to know the factors that determine the value:
- Unlike a house or property, selling mineral rights is not something just anyone can access. The accessibility is restricted because it targets a limited number of buyers. Therefore, information listed in the public records cannot be accumulated here to determine the exact value of the rights.
- investing in mineral rights won’t give you time to prepare for price fluctuations. Unlike in other industries, mineral rights prices do not follow a specific line on a graph. A sudden and massive increase or decrease can occur today, whereas yesterday it was completely different.
Although you may be thinking that investing in mineral rights sounds like a bad idea, it can actually be very fruitful if you utilize it the right way. We at Ten31 Minerals are here to provide you with some ideas in this context.
How to increase your mineral rights value
After investing in mineral rights, it is possible for you to get the maximum value at the time of selling them. This is why you need to put your sale in front of the maximum number of people. When they bid on your rights, the price will automatically hike. As an individual, it can be little difficult to show your mineral rights to a large number of potential buyers, so we are here to perform this job on your behalf. We will utilize our network to get you a good buyer so you can earn a good profit. We will consider the offered prices and choose the best one for you.
Regarding common mistakes
After many years of experience in this industry, we have come across some common mistakes sellers make that can create a mess regarding the value of the property. Here are a few that you should avoid:
1. Use of the “shotgun approach”
If you need money instantly, you may consider a shotgun approach, which we do not recommend. This is a shortcut for selling your mineral rights in the least possible time. In this scenario, people invite some buyers, decide the best price among that small group and sell the mineral right to that buyer. This method is not worth it for your investment in mineral rights. Because the group is small, the scope of exposure is shallow, and the chance to get a willing buyer to give the best value is less.
2. Deciding without valuing time
As previously mentioned, the value of your mineral rights depends on the time you invest. You have to understand the market and cope with the frequent changes of the value. If you have a record made in the past, don’t trust that to judge the right time for selling your mineral rights today. This can lead to no profit or even loss.
3. Not considering the second offer
Even if you are in a financial crunch, don’t accept the first offer as soon as you get it. You will not be able to compare the first price with others if you accept the first offer you get.
Investing in mineral rights will be beneficial for you if you hire a professional to manage the sale of your mineral rights. With Ten31 Minerals, you can get the best deal for your mineral rights without having a headache.