Mineral rights properties have been a hot topic nowadays. It has been an interesting investment for real estate investors since last year but it has only begun to boom in the real estate market now. Let’s look more closely at the nature of mineral rights and mineral lease transactions.

Purchasing mineral rights isn’t as simple as buying a house or a car. When buying mineral rights, the energy/mining company has to get a mining permit and organize everyone’s schedule to commence operation on the property.

This is if the buyer wants to remove and make use of the minerals, of course. There are buyers who just prefer to invest in the property. The investment would include the plan to sell that property to energy/mining companies themselves.

Mineral Rights and Surface Rights

Mineral rights are different from surface rights. Surface rights only focus on the properties (buildings, landmarks, etc.) that is at the surface of the property. Mineral rights, on the other hand, refer to the energy or minerals that are present under the property. This would explain why we can have a surface rights owner and a different mineral rights owner.

Naturally, we can expect that there would be disagreements between the mineral rights owner and the surface rights owner. These would most often come out during the extraction of the minerals, and most of the time it is the surface rights owner who gets inconvenienced. Disagreements like these can be cleared up by looking back to the mineral rights agreement, or the mineral lease agreement. When it is written that the mineral rights owner has the right to operate mineral extraction any time he/she wants, then there is nothing that the surface rights owner can do. This is the reason why written agreements and contracts should be kept and valued. Legal assistance is always a big help, especially when it comes to mineral rights leasing.

Surface rights owners, and surface rights buyers, should also take a look at the mineral rights agreement. You may not be directly involved in the transaction of the mineral rights of your property. But you are still a part of that property and there may be certain things you need to prepare yourself for (like the extraction of the minerals at an inconvenient time).

Seek legal assistance when you are going to buy a property that may have mineral rights attached to it. Copies of mineral rights transactions are normally kept at a government office if you cannot find the original ones. Buyers should always ask what rights are included in the sale of a property. You can ask your lawyer to research on the property you want to buy and the extent of the ownership being offered to you. A lawyer’s assistance is important especially if you’re dealing with a property that has historic mineral activity and potential mining activity.

State and Local Laws

Most states have laws and regulations pertaining to mineral rights ownership, transactions, and extraction. There are laws and regulations that emphasizes the limitations of a mining company’s actions during extraction, for example. These laws are put down to help protect the environment and the parties involved. Both the mineral rights owner and the surface rights owner should be aware of these laws to avoid future problems and disagreements. To make matter clearer for both parties, lawyers and legal assistance should be present.

Obviously, mineral rights and mineral rights transactions are a very complex situation. They require a lot of research, a lot of counsel, and a lot of effort, time, and money. The most important thing to remember is to always ask about the rights and seek legal assistance.

Many people don’t really give a thought if there is anything valuable underneath the surface of a property. Most of us would only look at the exterior part of the property and the land, but not really what’s beneath it. Well, you just might have to, especially when you’re buying a property in a place where minerals and resources are abundant. In this case you have to buy the land with the mineral rights.

Check first whether the property you’re buying really does have mineral deposits underneath. You can ask for help from a local geology surveyor for this. You can ask around real estate agents, developers, or lawyers for any recommended surveyor.

Local and state laws regarding mineral rights are usually the same in many states. But it won’t hurt to check just to make sure. The state you’re in may have different definitions and elements for mineral rights purchase and extraction. Ask help from the local land commission or a real estate lawyer you know in the area.

When creating the contract for the purchase of the land and the mineral rights, it is important to write down the minerals included in the purchase. Include the sub-surface extractions and clear up any issues regarding the price of the mineral rights.

Now the seller might want to keep some of the minerals of the property. In order to obtain all the mineral rights, you’ll have to negotiate the price of the mineral upward. You should define the minerals and rights included in the transaction clearly to avoid future disputes.

One important thing to remember when doing a deal with a property with mineral rights is to always seek counsel from a real estate lawyer. Have your contract looked over and checked before finally agreeing to the deal. Buying land with mineral rights, after all, have great advantages for you as the buyer and you’ll need to make sure that the mineral rights are yours.

One advertising strategy in attracting sellers to your real estate investing business is to have a killer ad copy. Creating a great real estate ad copy should be part of your marketing campaigns in order to get more exposure and more clients.

Making a great ad copy is not as hard as it sounds, although it will require some effort and some time for testing and improving on it. Basically, the ad copy will be just like how you would talk to a potential seller and telling him or her to consider you when selling their house or property.

The best technique creating a great real estate ad copy is to make it so that you tell your potential sellers about yourself as a real estate investor. Show them what and who you really are as a real estate investor, in a way that they will feel that they can trust you. This way, you will be the first on their list when they want to sell their house.

Tips on Making a Great Ad Copy

1. Think about who and what type of person it is you are trying to sell yourself to. Put yourself in their shoes and try to determine what their situation may be. Try to think on what they may want or need.

 

2. After thinking on the customer, think about YOU. Work on your good and bad points and take note of the things that will make you appealing to the sellers. Think about why they should contact you or see you. Think about how you can personally interact with them, too. Clearly write down your services and experience.

 

3. A unique selling proposition should be in order. Think about what you can offer the sellers that other real estate investors have not or could not. You have to be different from your competitors in order to stand out and be noticed by the potential sellers.

 

4. Write down your first ad copy by combining the three steps above. If you have trouble writing it, you can talk it out and record it as if you’re personally talking to a potential seller. Listen to it afterwards and write it down.
   

 

5. Test your copy and improvise. Take your time with this. Test your copy more than once. Come back to it and improve on it after a day or two. Always have a fresh mind when revising the copy. Testing the copy and revising it many times will help you create an ad copy that gives out a strong message to the potential sellers.

Keep in mind, too, that confidence and enthusiasm can be evident in you ad copy. That is why it is important to be confident and proud of your work and services. Remember not to promise a lot. But always make the effort to do something extra and over deliver.

Do not fear that your copy is inferior and is not to be seen by the public yet. Your ad copy doesn’t have to be perfect before you can send it out. On the contrary, you will be able to see the results of your ‘test’ copies and make more improvements.

When selling your home, there are some things you need to remember to make sure that no one is inconvenienced or that your house is perfectly ready to be sold anytime! When on sale, the number one priority is for your house to be ALWAYS available for show. While this may seem to be inconvenient for you at times, you will be able to show your house to a lot of prospects and, thus, will enable you to sell your house faster.

Most real estate agents will call hours beforehand when showing your house to prospective buyers. However inconvenient it may be for you, the best decision would be to allow the agents show the house to the prospects as planned. Refusing might only lead you to lose a prospective buyer.

Here are other reminders for you when selling your home:

1. It’s Best Not To Be Home.

The prospective buyers will not be comfortable viewing your home when you’re around. They will feel like intruders. They may also not be up to being critical of the house because of the your presence.

If you cannot leave the premises, do your best to not intervene with the agent and guests. Try to remain out of sight. You can answer any inquiries from the agent or guests, but only when asked.

2. Turn On All the Lights In and Out Of the House.

Even if it’s broad daylight, turning on all the lights in and out of your house is recommended. The lights will help brighten up areas in your house which cannot be reached by natural sunlight. It will also prevent harsh shadows and will make your house more cheerful and bright to look at.

3. No Scented Sprays or Artificial Fragrances!

You never know if the guests are allergic to certain scents or fragrances. It may also offend others. If you want a pleasant smell around your house, opt for something natural. Or you can have a potpourri pot. You can also try turning on your stove burner or oven for a moment and putting a drop of vanilla extract on it.

4. Keep Your Pets Controlled Or Take Them With You.

To let the agents freely take the prospective buyers on a tour around your home, it is best for you to take your pets with you outdoors. It is not recommended for pets to go running around the property. Some prospects may not be too keen on having pets, or may be allergic.

It is also better to have a notice put up. If you cannot take your pets with you, keep them in safely penned area on your backyard. For household pets, you can put them in a room and put a sign on the door stating about the pets.

5. Keep Everything Tidy and Clean.

Make sure to empty your trash bins every time prospects come. Go through the bedrooms and see to it that the beds are made, and the curtains are well placed. Papers and scatters should be picked up and stacked neatly where it belongs. Do not leave empty glasses, saucers, or any unnecessary stuff around the house. The house has to be freshly dusted and swept or vacuumed. It is important for the house to be clean and to present it with a positive atmosphere.

In every property that you’re going to invest in, you’ll have to go through a real estate agent. Working with a real estate agent can be critical in your career as a real estate investor. It is important to have a harmonious working relationship with th real estate agent and push towards your goal in real estate investment.

Choosing a real estate agent, or realtor, is especially important when you are specifically investing in a certain real estate niche. For instance, if you are only looking for properties that can be turned into lease options, then you would want a real estate agent who can find a seller or property that fits your terms.

Choosing a Real Estate Agent

There are four main factors that influence your choice of real estate agents:

• the reputation of a real estate agent
• the real estate agent’s knowledge on the area or market
• the real estate agent’s associations or connections
• the professional designation held by the real estate agent

Considering all four, it is recommended that you choose a real estate agent who has established a commendable portfolio and is working for a successful firm or organization. A seasoned real estate agent would naturally already be learned on how the market works and has considerable information about the area he or she covers.

Opt to work with a real estate agent who works directly with the sellers. The real estate agent should also be able to know which sellers are in trouble and will most likely accept your terms in investing in the property.

Working Side by Side With Your Real Estate Agent

Of course, you as a real estate investor also have a job to do. You can’t leave everything –– looking for a property, negotiating with the seller, etc. — to the real estate agent. On the contrary, it is you who has to start off fostering a good working relationship with the real estate agent.

A concern among many real estate investors is that not all real estate agents understand what you do and, in the process, cannot fully execute your plans and may not recognize potential deals. Bear in mind that real estate agents are trained in the retail marketing. You may have different marketing techniques which they are not familiar with yet. With regards to this, you will need to be patient and persistent with them.

You can try explaining to the real estate agents what it is you really want and what deals you are specifically looking for. You can send them a letter explaining your concepts and terms, or have a presentation for them to encourage more interaction and concerns. You can also network with them and share what you do and ask for their assistance.

Your main goal is to establish a fruitful business relationship with the real estate agent, wherein he or she will be able to understand what makes up a good deal for you. Given a situation, for example, when the real estate agent meets a seller who is in a hurry to sell his or her home and may willingly accept your terms, the real estate agent will think of you and make a start for negotiating a good deal.

A successful real estate investor would naturally equate to having lots of successful real estated deals. A real estate deal is not considered to be successful if it isn’t completed and you’ve gained a promising profit. What does one have to do to garner successful real estate deals?

The 6 Steps

1. Find Motivated Sellers

Motivated sellers are a very huge part of a successful real estate deal. Without them, you wouldn’t even have a deal. Motivated sellers are especially preferred rather than the unmotivated ones since you’re probably not going to have a very successful negotiation with an unmotivated client.

Motivated sellers can come to you themselves. But most of the time it’ll be you who has to find and target them. Building your own prospective sellers list can do wonders for your real estate career.

2. Is It a Good or Bad Deal?

The next thing you have to look up when you’ve found a motivated seller is whether or not the property serves as a good or bad deal. Knowing if a deal is good or bad is critical. Bad deals have a way of sticking as bad deals. As much as possible, study and analyze the property and determine whether you can successfully invest in it.

When you’ve found that you’ve entered into a bad deal, renegotiate and immediately get off the deal. Getting out of it as soon as possible will help you cut back on losses in money and time. This is better than losing more in the future.

3. Clarify Your Goal: What To Do With the Property

Goal-setting is simple, but important, in real estate deals. What is your goal with the property? Why invest in it? Your answer should be obvious and easy: it’s either to make long-term equity or short-term profit. Either one is the correct answer. Either one will result to you making the most out of this deal.

4. Back End Strategy: How To Get Rid Of the Property

The back end strategy is something that every real estate deal will go through. How will you get rid of the property? How will you profit from it? Are you going to buy and flip it? Or buy and hold it? Are you going to lease or rent it? Any way it goes, just remember to think about your back end strategy before making an offer int eh negotiations.

5. Prepare a Back Up Plan

Some real estate investors don’t prepare a back up plan. It may not even be needed. But having a back up plan would help lighten things up when your original plan goes amok. Bear in mind that even experienced real estate investors make mistakes. For example, the property might not be sold as soon as you’d like. You’d be forced to extend and incur more expenses. Getting a back up plan to counter or adjust to the changes would be a really good boost.

6. Financing

Never get financing out of your system. This is huge part of your business and career, after all. Once you’ve made sure that the property is a good deal, and after you’ve made plans on what to do with the property, it is time to dig in with papers and numbers.

Budgeting, forecasting, and planning will be critical for the development of the deal. You have to make out an offer wherein you can get the property as cheap as possible, and sell it as quick as possible. If you’re going to hold on to the property a bit longer, or if you see that the property needs remodeling or refurnishing, you need to make a strict budget on the expenses and costs. Forecasting your ROI and profitability may also help you determine which course or strategy to take to come up with the highest income.

Success in real estate isn’t just all about the number of deals you get and the amount of profit you receive. It’s also about recognizing whether a property is a good catch for you or not. It won’t matter if you have less deals than others. If your deals prove to be better than theirs, you can certainly surpass their profit margins even if they have more properties.

But what makes an ideal real estate deal? The key word is “ideal.”

I – Income

D- Depreciation

E – Equity build-up

A – Appreciation

L – Leverage

The income refers to either your present income or a future retirement income. In any case, you’re in it for the money, so the income should be one of the center points when looking out for a good deal. Depreciation is a tax write-off or loss on the accounts, but it is actually a tax benefit to real estate. Equity build-up is gaining equity as you pay your debt on the property. You can also opt to force equity on the property by fixing and remodeling it. Appreciation involves raising the value of real estate over time. Lastly, leverage is putting in an investment to get a worthwhile return. Leverage is basically one of the key benefits in real estate. Basically, it’s a dollar-for-dollar basis wherein when the stock market goes up, your returns will go up too.

Determine Risk and Upside Potential

With every deal comes risks and the possibility of having an upside potential. Taking risks is common in the real estate market. There are almost always risks. The less the leverage, the greater the risks. The more you owe, the bigger the risks.

Risks are something that every real estate investor has to be seriously considering about. This is because when you lose in a deal, you do not just lose your money. You also lose the amount of time you spent working hard on that deal, and you also lose your some of your credibility in the field. Your time and effort used in that deal would have been put to waste.

Determining whether the deal has an upside potential is also important. There are actually a lot of properties out there that can be developed and creatively altered to increase its attractiveness and appeal to the buyers.

Risk, upside potential, and IDEAL are basically what will guide you in recognizing a great real estate deal. These will also help in telling you which real estate deals have a big probability of flopping, and therefore give you an early sign to avoid that kind of deal.

Move Out of a Bad Deal!

There are times when we notice too late that we’ve made a bad deal. We may have neglected to check on some things that could prove to be the cause of the problems with the deal. When this happens, it is important not to drag the deal longer than necessary as it will only provide a loss for you. When you’re already in a deal before you realized that it will only cost you more than give you gains, the best move is to negotiate yourself out of that deal.

Add to the criteria (IDEAL, risk, and upside potential) the need for knowledge and research, you will be able to realize at least at an early stage that you have to move out of the deal as soon as possible. Knowledge is a known powerhouse of real estate. The more knowledge you possess, the less risks there are.