If you’re looking to embark on a new investment venture, you may want to take a look at buying mineral rights. With minerals such as cobalt experiencing a 10% year on year increase in price, it makes sense to introduce minerals into your portfolio.
That said, buying mineral rights can be complicated, and you can’t just go online and search ‘minerals for sale.’
This post will teach you how to get started with buying mineral rights. Keep reading, and you’ll learn how to spot the diamond in the dirt when it comes to investing in mineral rights.
Let’s begin!
What Are Mineral Rights?
For a given piece of land, you’ll find that two kinds of ownership come into play.
The first is surface ownership, and this relates to the ownership of anything above ground. Such a form of ownership is a good idea if you want to invest in real estate.
Mineral rights, however, allow you to claim ownership of anything that’s below ground for a specific area.
In a lot of cases, you may be able to buy the mineral rights to a location without having to buy the land.
Finding Mineral Rights Opportunities
Plenty of websites give you the opportunity to buy minerals or at least the chance to buy mineral rights.
If you’re going to use a website to help you source mineral rights, try to find one that’s been around for a long time.
Such websites will likely have a better vetting process in place, thereby improving the quality of the listings.
Be Sure to Practice Caution
Buying mineral rights isn’t easy, and you need to be careful you don’t fall victim to any sort of scam.
This is important when you consider that someone might promote the mineral rights to a region, even if someone else already owns them. Thankfully, you can find out whether someone owns the rights by checking local records.
If you want to be thorough, you can hire a lawyer to help you take care of due diligence.
Check the Local Laws
Before you buy the mineral rights to a piece of land, be sure to check the local laws.
This is because some regions have strict rules on how you can extract certain minerals.
In some cases, regulations can mean you have to use costly means of mineral extraction. If you fail to do the math ahead of time, this could lead to you losing out on a lot of money.
For instance, in certain parts of the US, there’s a ban on fracking. Your mineral rights may include an area that’s rich in gas. But without the ability to make use of fracking, you may not be able to access this gas in a cost-efficient manner.
Is This the Best Way to Find Minerals for Sale?
If you want to invest in minerals, you can either find minerals for sale or identify locations where you can buy mineral rights.
The latter option can often yield a better profit since it cuts out a lot of intermediaries. That said, finding profitable opportunities to buy mineral rights isn’t easy, and it takes a lot of due diligence.
Yes, finding profitable mineral rights is a difficult task. But provided you keep looking for opportunities, you should soon identify some mineral rights that’ll produce a favorable ROI.
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