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Reasons to Sell

Tax Advantages

The IRS treats mineral and royalty property the same as real estate or other long term investment. This means you will pay long term capital gains rates on the sale of your property, which are much lower than taxes on ordinary income. 

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Additionally, you may also select to do a "1031 exchange." A 1031 exchange allows you to exchange your property for a similar property and pay no taxes on the amount exchanged.

Risk Reduction

There are several risks associated with royalty ownership.

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  • Production is always trending downwards overtime, meaning the check you get now is going to decrease without a new well or secondary recovery operations. 

  • There is no guarantee new development will ever occur on your interest. The Permian Basin is a massive area, subject to ever-changing market conditions. 

  • Oil and gas assets require diligence to maintain. You must keep title records handy, watch for tax documents, be sure to change your address if you move, and stay up to date with your division orders.

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Peace of Mind

Many choose to sell their mineral and royalty interests so that they may use a lump-sum now to impact their lives, instead of waiting years for royalty payments to accumulate. Furthermore, mineral and royalty interests can complicate estate planning. Many choose to liquidate their assets to create a more simple estate.  

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Sales Process

Simple and Straightforward

We strive to make the sales process as simple and straightforward as possible. We strive to make sure everyone is comfortable with every step, and understands every aspect of the process. Our goal is to have all of the research, paperwork, and closing done in thirty days or less.

Quote and Title Research

Once you are interested in selling your property, we will get you a quote within days. Then we will begin a title research period. This involves a detailed check into the title history of the property. We are looking for any title defects, or things like liens or other burdens. If an issue is discovered, we will take the necessary steps to cure the title. 

Paperwork and Closing

After confirming good title, we will then send a packet with all of the necessary paperwork to complete the sale. Once all of the paperwork is reviewed and properly executed, we will make arrangements to close the sale.

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