im in need of a couple thousand due to a emergency. are there other options other than selling my interests like pulling a loan out or anything else other than selling .. i need help any advice please. medical emeregency in need of couple thousand
Yes, it seems so. google "loans on royalty interest" and you will see lenders. I do not know if they are any good or reputable, so let you beware.
Best,
Buddy Cotten
Hi Lisa!
I'm sorry to hear that you aren't feeling too chipper. Hope you are back running with the horses soon.
I haven't tried googling Buddy's suggestion yet, but can highly recommend your taking any advice he offers.
You didn't mention in your message what type of interests you own, but I assume you meant mineral interests. And you didn't mention whether they are presently under lease or whether they are producing or not.
If they are not presently under lease, perhaps we can find someone to lease them from you.
If they are presently under production and you are receiving royalties, you can maybe find a very understanding someone who will accept your royalties or part of them to pay off a loan. You could do that with a Term Assignment / Production Payment type instrument of some kind: When "$X" is received by the Assignee, the Term Assignment terminates and the payments revert back to you.
If you are not presently receiving any royalties, you would probably have to consider selling all or a part of your minerals.
It is my understanding that you can list your interests on the main page of The Forum. Otherwise, Buddy or I or any of the other industry professionals that are members of The Forum, can help you locate someone interested in your interests.
Either way, be sure and have a reputable Oil and Gas Attorney look over any papers before you sign them.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
If you are now receiving royalties, I would ask the bank you now use. I have with my royalties as collateral on loans in the past from my bank.
Your bank is a good place to start.
i dont have a bank account
Charles Cunningham said:
If you are now receiving royalties, I would ask the bank you now use. I have with my royalties as collateral on loans in the past from my bank.
Your bank is a good place to start.
This is excellent advice. I was going to attempt to say as much, but I would not have been able to word it so succinctly. The story of the Mr. and Mrs. Settles in Big Spring comes to mind. They built a grand hotel using their ranch as collateral. The hotel opened into the Great Depression, and they forever lost their ranch in the Howard-Glasscock field. Section 8 Page 17 "However, a looming financial crisis was already underway as early as the hotel’s grand opening. According to local legend, M.L. Tinsley fleeced around $100,000 from the Settles. They signed a promissory note for $125,000 using the ranch and their mineral rights as collateral in June 1930 to cover the shortfall. The promissory note was held by Group No.1 (later Continental Oil Corporation), who held an oil lease on the ranch. The price of oil fell from $3‐ $4 a barrel to 10 cents a barrel. The Settles Hotel Corporation, unable to meet their obligations, lost the hotel. It was sold at auction to Group No.1 for $75,000, which was applied to the note. This also meant that Group No. 1 now owned the Settles’ ranch, as well as all oil and mineral rights, worth millions of dollars."
Charles Emery Tooke III said:
...
If they are presently under production and you are receiving royalties, you can maybe find a very understanding someone who will accept your royalties or part of them to pay off a loan. You could do that with a Term Assignment / Production Payment type instrument of some kind: When "$X" is received by the Assignee, the Term Assignment terminates and the payments revert back to you.
...
Either way, be sure and have a reputable Oil and Gas Attorney look over any papers before you sign them.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Well, maybe we can help you find one: Where do you live, Lisa? Are you married? Have any family?
lisa gayle golledge said:
i dont have a bank account
Charles Cunningham said:If you are now receiving royalties, I would ask the bank you now use. I have with my royalties as collateral on loans in the past from my bank.
Your bank is a good place to start.
For what it’s worth, I got a card in the mail the other day from some place called Royalty Lender, Aledo, Texas 76008 (www.royaltylender.com). I know nothing about them. Hope I’m not breaking some rule by posting this. Maybe someone else knows something about them. Says they’re listed with BBB.
Aledo, Texas is just to the West of Fort Worth, Texas, where I live. I'll see what I can find out about them.
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Thanks, Charles! Linton
If you will google "Royalty Lenders" you should come up with3 or 4 different lenders like this. All have a 3% loan orgination fee, a lending amount of 25 times cash flow and all say they will not foreclose on your interest.
One even said it it outside of any type of government regulation. All said call for current interest rate.
The BBB website shows that Royalty Lenders is not accredited with them
There are two (2) companies that use the name Royalty Lender in their title. The one in Aledo is not a member of the BBB, the one in Dallas is a member
So the one in Aledo is claiming to be a member of the BBB but is NOT? THAT'S not a good sign! Beware.
I have borrowed from Royalty Lenders, and it is a reputable company.
I also am responsible for the lending operations of another royalty lender called Royalty Lending Financial Services -- www.RoyaltyLend.Com . With commodity prices such as they are today (in the pit of despair), royalty lending is an option to selling one's property.