Turn your mineral rights into an investment opportunity

Mineral rights are the privilege to exploit minerals within the area coverage of a piece of land. Mineral rights have more than one obligation; they defend the landowner from legal accusations and ensure environmental conservation from unruly miners and exploiters.

To understand the investment opportunities in mineral rights, we should understand the types of mineral ‘property’ according to the legal system. Firstly, mineral rights are separate from property ownership, thus making it possible to own mineral rights even without owning a building or a piece of land.

Types of mineral rights:

1. Unified estate.

It is also referred to as unified tenure or fee simple. It consists of owning both surface mineral rights and the whole property under one name. under the type of ownership, you are at liberty to manipulate or sell your mineral tights as you please.

2. Severed estate

It consists of a particular arrangement where individuals can sell their surface property rights but retain the mineral rights or vice versa. It is also known as a split estate. The type of agreement is prevalent where land or property is passed over through family generations. Massive cooperation that has sold the surface property to smaller entity individuals also retains the power to sell mineral rights.

3. Fractional ownership

The type of mineral rights ownership whereby two or more parties claim or divide mineral rights between each other after selling prior owned properties to their children differently or different institutions.

Types of investment opportunities depending on different mineral rights

Unified tenure rights have the liberty to either sell mineral rights partly to developers while still being able to protect themselves with surface rights. Selling a small percentage of mineral rights enables you to bargain better deals for the remaining mineral rights depending on the reserve’s size, even after a few years.

Another way a unified tenure allows you to capitalize on your mineral rights is by selling them to wealthy developers for a large quotation, then using the money to invest elsewhere. The best advice for such a bold move is to invest in an industry you are well versed with to earn even more money. You can also use the acquired money to pay off the pending mortgage balance and fully claim the surface rights.

 If you are in a split estate arrangement and have the ownership of mineral rights, you can also use this power to earn passive income. Owning mineral rights enables you to exploit a mineral reserve within the property. However, it could have been subdivided over time.

Therefore, you have the liberty hands to sell mineral rights to the surface property right owners. Alternatively, potential developers interested in the subsurface mineral rights can buy mineral rights from you if you are willing to sell them. Finally, you can sell a small percentage, say thirty percent, allowing you to retain some mineral rights and still earn.

When you make a certain amount of money after you sell mineral rights, the money you earn is used to develop other streams of income;

1.Farming is a lucrative opportunity primarily when you operate large scale. Carry out extensive research and hire the best specialists to obtain maximum profits. If developers buy mineral rights from you can get enough money to invest in such a venture.

2.Real estate development is another region of investment that people often underestimate. A mature real estate company can use your money to develop various property types such as rental suites or homes for sale, which you can recover the money you got when you sell mineral rights and even earn much more.

3.You can also build your rental complex to control if you are willing to bear the workload it comes with. When an interested developer buys mineral rights from you, bargain to the best price and use the money to own your real estate empire. With time you could even hire out help which allows you to live a comfortable life afterward.

4.There are numerous ways to earn passive income, such as cash bonds and stocks, which have made multiple people millionaires without exerting much labor. The only disadvantage to this is that economic trends are volatile, and you could lose money if you invest in the wrong companies.

I hope this article inspired you to sell your mineral rights and change your lifestyle.