Dont take that first offer from the market. Instead, let me help you market and sell your minerals at the best price possible. | welcome you to dial me up; let’s talk about how | can help you and your family.
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FREQUENTLY ASKED QUESTIONS
Why Should | Sell?
My customers have sold their royalties and minerals for a variety of reasons. I’m here to help walk you through the selling process and make the best financial decision for you. Bottom line: the proceeds from sales at the prices | achieve for my clients would often take years to accumulate In monthly royalty checks. Enjoy your money today rather than waiting years to recoup it
one month at a time.
Here are just a few of the common reasons clients have decided to sell:
- Liquidity: Turning mineral or royalty interests into immediate cash.
- Legacy: Estate and trust planning
- Relief: Helping to pay off debt
- Tax advantages: Leveraging a 1031 exchange in the property sale
- Capital: Looking to reinvest other ventures
- Simplicity: Getting rid of accounting hassles
How is Homestead Mineral Brokers different from other mineral brokerage firms?
I work for you, the seller, plain and simple. Other mineral brokers are acting on behalf of the end buyer, and are incentivized to purchase your minerals at the lowest price possible. Homestead Mineral Brokers takes your minerals to market, knowing exactly to whom to showcase your assets.
As a seller-side broker, my approach is focused squarely on protecting sellers from unfair lowball offers; being a committed partner who walks through the process with sellers end-to-end; and finding the most competitive prices for your mineral interests. I achieve this is by: maintaining an extensive list of pre-qualified buyers who are highly motivated to pay premium prices for interests in your area.
How do! know what my minerals are worth? Can you value my minerals before the sale?
Yes. I work closely with Herco LLC , which has 40 years in the mineral appraisal business. I utilize their expertise to complete a mineral appraisal that will tell you exactly what your mineral rights are worth. If you need a step-up in basis for tax purposes, I can handle that as well.
Can I sell only part of my minerals?
Absolutely. In fact, I frequently encourage sellers to keep a portion of their minerals to hedge against long-term improvements in cash flow. This allows the mineral owner to immediately cash out a portion of the value, removing all price and production risk from the equation. If you have the ability to “let it ride,” the portion you own may become more valuable in the future or may be preserved in your estate for your dependents.
Still, it is not unusual for owners who have kept a portion of their minerals to come back to me and sell the remainder. This is particularly true if cash flow continues to be depressed after the initial sale. I am happy to work with you on an additional purchase should that happen.
What if I’m not sure exactly what I own?
That’s ok! I can help you figure that out. I’ll review your existing documentation for information and clues. If that doesn’t yield the answers I need, we can partner with Herco LLC . They have landmen on retainer, ready to head to any county and run title for us. When the landman is done, we will know exactly where and how much you own.
Is the sale taxable?
Yes, the sale is subject to federal and state income taxes (where applicable; e.g., Texas owners don’t have to pay a state income tax). The good news is if you’ve owned the minerals for a few years, the sale will be categorized as a capital gain, which is potentially a much lower tax rate than ordinary income. In fact, this is potentially a large value-add and reason to cash out now. I always advise mineral owners to seek guidance from their own tax advisors on these matters. I do not offer tax advice.
What if my mineral rights are non-producing?
Homestead Mineral Brokers can sell all types of acreage, whether producing or non-producing, and with all acreage amounts, from large consortiums to individual mineral owners. Your non-producing mineral rights can sometimes be more valuable than a mineral interest with wells on it.
WHAT PEOPLE SAY
Don’t take that first offer from the market. Instead, let me help you market and sell your minerals at the best price possible. I welcome you to dial me up; let’s talk about how I can help you and your family.