For questions, sales inquiries, or any other information, please contact us at:
Mineral Rights 4Sale, Inc.
(A Subsidiary of SITCO - Shaya International Trading Corporation)
Michael R. Shaya, President & CEO
Phone: (248) 425-7748
Email: shayaintl@gmail.com
Website: mineralrights4sale.com
Mineral Rights 4Sale, Inc.
(A Subsidiary of SITCO - Shaya International Trading Corporation)
Michael R. Shaya, President & CEO
Phone: (248) 425-7748
Email: shayaintl@gmail.com
Website: mineralrights4sale.com
Frequently Asked Questions
Why would an owner sell his or her mineral rights?
Mineral rights are often severed from surface ownership when a family farm or ranch is sold. The rights continue to pass from generation to generation, becoming more and more fractionalized as decades pass. At the same time, oil and gas exploration results in production on a very small percentage of non-leased or leased property throughout the United States. You may decide that your mineral rights are more valuable to you as available cash than as a piece of paper.
The decision to sell may depend on the owner’s current needs, the number of net acres owned, the owner’s age, and many other considerations. For many owners, it makes sense to sell their mineral rights now and invest the proceeds in a more immediate need. Sellers have used their royalties to pay for vacations, invest in real estate, purchase vehicles, pay college tuitions, or even in some cases to retire mortgages or to retire altogether.
Why is now a good time to sell my mineral rights?
Long-term capital gains tax rates are at historically low levels. Current federal tax law provisions significantly raise the value of a sale: For an investor who disposes of an asset held for more than one year, the current law reduces the long-term net capital gains tax rate to 15% for persons in the highest tax bracket and to 5% or less for those in lower brackets. According to the Wall Street Journal, these are the lowest capital gains rates since the 1940s. Assuming that you have owned your interest for more than one year, you should not pay more than 15% of the purchase price in capital gains taxes. It is unclear how long these uniquely favorable conditions will last.
How do I find out the value of my mineral rights, or how do I get started on selling my mineral rights? Mineral Rights 4Sale, Inc. purchases both producing and non-producing mineral rights. Offers vary with the nature, geologic merit, and location of the property. Low long term capital gains tax rates may mean that now is a uniquely favorable time to monetize an otherwise illiquid asset. We expect to make reasonable, attractive offers and to make our purchases at the high end of the pricing scale.
For currently producing minerals, the price is generally calculated as a substantial multiple of monthly net revenue. The value paid is determined by several factors: 1) The actual royalty interest held; 2) The age and current decline rates of production; 3) The current commodity price.
Offers typically vary between thirty-six and seventy times monthly revenue. Of course, there is no fixed cap on price, and exceptional circumstances could generate exceptional results.
For non-producing minerals, the price is calculated per net acre, as for traditional real estate transactions.
How do you resolve difficult title and conveyance issues?
Often, owners do not have clear title to their mineral interests and therefore are unable to sell, transfer, or lease their rights. The cost to reopen a probate proceeding and clear a title may exceed the value of the mineral rights themselves. SITCO has the experience and legal expertise needed to make the process simple and straightforward, and has successfully reopened probates and facilitated ancillary probates for many owners in order to properly deed properties and allow for conveyance (sale with clear title).
Mineral rights are often severed from surface ownership when a family farm or ranch is sold. The rights continue to pass from generation to generation, becoming more and more fractionalized as decades pass. At the same time, oil and gas exploration results in production on a very small percentage of non-leased or leased property throughout the United States. You may decide that your mineral rights are more valuable to you as available cash than as a piece of paper.
The decision to sell may depend on the owner’s current needs, the number of net acres owned, the owner’s age, and many other considerations. For many owners, it makes sense to sell their mineral rights now and invest the proceeds in a more immediate need. Sellers have used their royalties to pay for vacations, invest in real estate, purchase vehicles, pay college tuitions, or even in some cases to retire mortgages or to retire altogether.
Why is now a good time to sell my mineral rights?
Long-term capital gains tax rates are at historically low levels. Current federal tax law provisions significantly raise the value of a sale: For an investor who disposes of an asset held for more than one year, the current law reduces the long-term net capital gains tax rate to 15% for persons in the highest tax bracket and to 5% or less for those in lower brackets. According to the Wall Street Journal, these are the lowest capital gains rates since the 1940s. Assuming that you have owned your interest for more than one year, you should not pay more than 15% of the purchase price in capital gains taxes. It is unclear how long these uniquely favorable conditions will last.
How do I find out the value of my mineral rights, or how do I get started on selling my mineral rights? Mineral Rights 4Sale, Inc. purchases both producing and non-producing mineral rights. Offers vary with the nature, geologic merit, and location of the property. Low long term capital gains tax rates may mean that now is a uniquely favorable time to monetize an otherwise illiquid asset. We expect to make reasonable, attractive offers and to make our purchases at the high end of the pricing scale.
For currently producing minerals, the price is generally calculated as a substantial multiple of monthly net revenue. The value paid is determined by several factors: 1) The actual royalty interest held; 2) The age and current decline rates of production; 3) The current commodity price.
Offers typically vary between thirty-six and seventy times monthly revenue. Of course, there is no fixed cap on price, and exceptional circumstances could generate exceptional results.
For non-producing minerals, the price is calculated per net acre, as for traditional real estate transactions.
How do you resolve difficult title and conveyance issues?
Often, owners do not have clear title to their mineral interests and therefore are unable to sell, transfer, or lease their rights. The cost to reopen a probate proceeding and clear a title may exceed the value of the mineral rights themselves. SITCO has the experience and legal expertise needed to make the process simple and straightforward, and has successfully reopened probates and facilitated ancillary probates for many owners in order to properly deed properties and allow for conveyance (sale with clear title).