Background. Carrollton was conducting a grassroots effort to acquire mineral rights in the Permian Basin. One potential seller was a recently retired couple living on the Texas Gulf Coast who owned several hundred acres of minerals in an area.
Challenge. Their minerals had not been leased in many years, so they understood downturns in the oil business. The couple wanted to supplement their retirement funds by selling their minerals but were concerned that if they did sell they could miss out on a bonanza if wells were drilled on their lands. They also wanted to move closer to their family, but were having trouble selling their residence during a down real estate market.
Solution. Carrollton offered to purchase their home at the appraised value and half of their mineral estate at the prevailing market price. Both parties were able to achieve a positive outcome. The sellers were able to sell their home, get an influx of cash, immediately move closer to family while retaining half of their mineral interest. Meanwhile, Carrollton was able to acquire a mineral position in an area where we were actively buying at a fair price and was able to sell the house several months later once the real estate market rebounded.