I have a solid offer from them to purchase my small amount of mineral interest. Thanks
Out of curiosity, my question would be: on what basis do you believe you have a “solid offer”?
As far as the company you mention, I suspect they are one of (literally) hundreds of “a couple of guys smiling and dialing” looking to buy (very) low, aggregate, and turn to someone with a much larger capital base.
In a free market society, every asset class has it’s capital structure and supply chain. These type companies merely fit into the supply chain for mineral interests (at the low end - sometimes very low). As important as price is, there are a host of other important issues to watch out for. The most important thing you can do is keep your common sense hat on and discover the right questions to ask, and work with solid people who have a solid reputation.
Here are 3 easy quickies to tell your potential suitors:
- provide me a written purchase and sale agreement, and a copy of the form of deed you propose to use
- put me in touch with your banker (at a known bank) who will verify that you actually have capital
- require 5-10% of any purchase price contemplated to be put into escrow upon signing a purchase and sale agreement
Thank you for your response. When I say solid offer I mean higher than the others that have reached out to me, and after negotiating. He tells me they have most of the title in my section.
A four foot man looks tall in a room full of three feet men. You don’t want to determine what your assets are worth from random parties lobbing offers at you.
What’s that got to do with the price of rice in China? I’ve “got title” in lots of places across oil and gas country. That means nothing with respect to the value of your minerals.
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