Sure, you could buy a list of a county’s mineral right owners from us and mail an offer to everyone on the list. You then would expect a 0.3% response rate. But is that what the smart money does?
No, the smart money has a plan, they have a target profile they are after. So they filter their data to find a high return rich population in the data. For example, they assume the cost is $70 to receive a response call, do basic due diligence, complete an offer, and file the deed at the courthouse. Thus, they filter out any royalty worth less then $70 from the database. Then they remove their ‘knock list’ of names. Folks they know won’t sell, or people who’ve called in not wanting more offers. This saves them postage money as well as handling cost. They may also remove royalty trust owners, and major corporations, and any other institution who they are confident won’t sell.
Then they may divide their mail out into two groups:
- General Public
- Targeted high return group
The targeted group will get a different letter and approach, perhaps a follow up letter, or a follow up phone call. This group might be the Texas mineral rights owners that live outside of Texas, or the estates of recently deceased, or residents living in a crisis area like Galveston after the hurricane or the 9th Ward in New Orleans who may have a heightened need of immediate cash to rebuild after the flood.
Whatever your royalty buying warchest is, you should engage it with a plan of attack in buying mineral rights. Learn from the smart money, use your warchest wisely. There is a profit to be made so do it with a plan.