General Discussion

badtoworse

(5,957 posts)

25. That actually sounds like a risky play to me

Tue May 22, 2012, 12:36 PM

May 2012

I assume your venture capitalist is buying blindly, i.e. with no test data confirming that the properties have substantial mineral resources. Natural gas prices are down right now, so there may not be the market to sell those rights at present. They may need to sit on them until the natural gas market recovers.

BTW, I've been involved in leasing land for wind projects, a very similar exercise as acquiring mineral rights. Generally speaking, the landowners are savvy people who know what their land is worth and what is a fair price for a lease or sale of the mineral rights. IOW, they're not naive idiots.

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The 1 Percent Is Buying Up All Of The Low End Real Estate [View all] xchrom May 2012 OP

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The smaller investors don't have the money to come into the market.......... socialist_n_TN May 2012 #12

The shift from federal income taxes to local property taxes is what keeps me out. ieoeja May 2012 #14

OMG!! guardian May 2012 #23

you don't live in NY then belcffub May 2012 #29

In NJ, we're right up there with you. badtoworse May 2012 #31

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Where do you live?! SunSeeker May 2012 #26

The house was selling for only $5,000 in Lindenhurst, IL. ieoeja May 2012 #36

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He was going to buy it for his buddy who is living in his basement. dkf May 2012 #32

ok... now that I re-read it... belcffub May 2012 #35

Not that nice. I just want him out of my damn basement! ieoeja May 2012 #38

Props that you even considered it. dkf May 2012 #40

Funny you should mention the upstairs.... ieoeja May 2012 #39

+1 bemildred May 2012 #15

Absolutely. And I've been watching this first hand. Gregorian May 2012 #16

The big money is *always* bargain hunting. Robb May 2012 #17

They're professional investors; that's what they're paid to do. badtoworse May 2012 #19

Nope. I had lunch with a venture capital guy a month or so ago Robb May 2012 #22

That actually sounds like a risky play to me badtoworse May 2012 #25

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Where I am, existing MineralMan May 2012 #34