are you ready to ditch your 9 to-5 you can earn 10 20 $30,000 a month or even more buying selling and brokering mineral rights let's talk about [Music] it Howdy Folks my name is Steven Hatcher and I'm the creator of minerals guy I'm a professional mineral buyer in oil and gas attorney and I have over a decade of experience buying selling and developing oil and gas properties all across the country my business buys sells and trades in thousands thousand of Acres of mineral rights every single year using a proprietary system that we've developed if you want to learn how you can use my system to start a new career in mineral rights make sure you stay tuned until the end of this video so what are mineral rights mineral rights are legal rights in a piece of property to subsurface minerals like oil and natural gas it's like subsurface real estate the mineral rights owner owns the minerals in the ground and when those minerals get extracted the owner gets paid mineral rights owners Grant oil and gas leases to oil compan that want to drill on their land in exchange for granting that lease the oil and gas company is going to Grant a royalty interest to the owner of the mineral rights on any oil and gas that is produced from their property and these mineral royalties are 100% passive in fact mineral rights are the OG of passive income and those royalties are going to come in the mail every single month for as long as that well continues to produce and that's why they call it mailbox money so how much money are we talking about well depending on the size and location of the tract we're talking thousands hundreds of thousands or even millions of dollars in royalties but why would anyone want to sell them well the same reason that people choose to sell other assets like real estate they want liquidity so how large is this Minal rights opportunity estimates from public companies like kimal royalty Partners on the size of the market for Minal rights in the United States are as high as 800 billion doll and here's the interesting thing about the market it's highly highly fractionalized so what do I mean by that well let me give you an example let's say that Farmer John owned a 100 acre tract in East Texas back in the 1930s he and his wife had four children and each of their children had another four children so as mineral rights get passed from generation to generation they get divided among heirs there are literally millions of Americans who have inherited mineral rights you might have someone in California who owns Miner rights in North Louisiana the opportunity set is highly diverse and almost unlimited so how do you go about buying mineral rights well first you have to know where to look similar to surface real estate when it comes to minerals it's all about location location location if New York City is Mecca for real estate in the US then West Texas is Mecca for mineral rights but there are plenty of other areas around the country where mineral rights are extremely valuable places like North Louisiana North Dakota and Northeastern Colorado to name a few when you're buying mineral rights you want to be in the neighborhood where minerals are being developed where oil and gas companies are permitting Drilling and producing oil and gas Wells so the second thing that you have to know how to do is how to find mineral owners in most but not all cases the person who owns the surface real estate is not going to be the owner of the mineralites this is because it's very common in areas of active oil and gas development for land owners to reserve minerals when they sell surface and this creates a separate chain a title for the surface and the minerals using our example above let's say that Farmer John sold that 100 acre tract in East Texas in 1950 but he reserved the minerals the person who owns the surface track today would have no rights to the minerals but rather Farmer John's heirs who are spread from Maine to California own them chaining mineral title is a skill that anyone can learn this is actually what land men do for a living you have to learn how County deed records work and how to run title forwards and backwards using grantour or grante indexes and today most of this research can be conducted online from anywhere in the world in addition to running title there are other repositories in different states that contain mineral ownership information in Texas you can use the mineral tax roles which records the interest of every single mineral owner in every single well in the state in other places like Oklahoma and Ohio you can use pooling or unitization records to identify mineral owners so next Once you found a mineral owner that wants to sell you have to know how much you can pay for example let's say that you found one of Farmer John's SS who lives in Los Angeles and he's ready to sell what do you offer him and how do you know how much you can pay well it's not as easy as it is when it comes to real estate there is no Zillow there is no red fin when it comes to mineral rights but here are the three primary methods of mineral valuation the first is multiple of cash flow analysis this is where you offer the mineral owner a multiple of their existing royalty check the second method is to offer based on a price per acre which is similar to comp analysis in real estate the third and most sophisticated way to model the value of mineral rights is using DCF or discounted cash flow analysis this method projects future cash flows and then discounts those cash flows back to present value I literally just filmed a video explaining these three methods in detail you should see a link up at the top of the screen and we'll also post one down in the comments if you're ready to take a deep dive on Mineral valuation make sure that you go watch that video so if all of this sounds pretty interesting we've got a ton of free cont content on our Channel make sure that you like this video subscribe so that you get notified when we post new videos in addition if you're ready to take the leap and start buying and brokering minites we are building a comprehensive course to share our system for how we target find and value mineral rights if you want to jump on the wait list for the course make sure that you shoot me an email at stmineral guide.com [Music]