There are many opportunities to diversify your portfolio by investing in mineral rights. We’ve put together three articles and two videos that answer a lot of the mineral rights questions that investors have.
The common theme you’ll find is that mineral rights have great potential and can be a healthy part of your portfolio, but that it’s wise to go into the market well informed with an expert guide.
Invest in Oil and Gas Boom?
Even mainstream media has caught on to the popularity of investing in mineral rights. In a short video on the Fox News site, oil and gas industry expert Ed Deicke of JHS Capital Advisors tells you why he’s bullish on mineral rights too.
"All the money being brought in on the oil and gas that we are exporting out that's just increasing the gross domestic product here in the United States... we're kicking butt and taking names in the energy sector... "
So, you want to invest in a natural gas well?
Take the advice of professionals and do your homework when investing in mineral rights; even more so, if you’re planning on direct participation in the drilling.
"...go in with your eyes open. Be sure you understand the scope of decisions you may have to make."
Introduction to Mineral Rights Leasing
Pull up a chair and watch this excellent video that covers each phase of mineral rights leasing from ownership to royalty payments.
How does the order for payment for an oil and gas lease work?
In mineral rights, the devil is surely in the details. The smallest term or clause can be a source of disappointment. Curtis Talley Jr., an expert from the Michigan State University Extension service, shares his wisdom, writing that:
"I have talked with several mineral owners who have discovered [that] the order of payment…created disappointment and frustration. In one case, it had been more than six months since the lease was signed and the bonus had not been received."
1031 Exchange News: Oil and Gas Royalties Diversify Your Portfolio
Consider diversifying your portfolio with mineral rights, and still include those assets in a 1031 exchange. Robert Poe of Kernors LLC feels good about that approach, counseling his clients that
"Oil and gas rights can be a powerful part of a good investment portfolio and they qualify as part of a 1031 exchange like any other real property."
Mineral rights can be an important part of your portfolio. But they’re more complex than many other investments. Trust the professionals at Kernors LLC to help you create a portfolio that balances risk with return. We’ve been protecting and growing our client’s wealth since 1924.