Direct Access to Opportunities That Were Once
Out of Reach
Let's be honest…mineral buying companies are a dime a dozen.
There are literally a thousand different places where someone can sell their oil and gas mineral and royalty interest. So how do you know which one to choose? A slick looking website or a big office in Dallas doesn't necessarily mean that's who will give you the best offer. The truth is that a large percentage of companies that are actively trying to buy mineral interest can't even afford to keep them all. Even if they could, keeping the mineral interest that they buy isn't even their real business model.
The real plan is for them to get you to agree to a purchase price upfront and then get a binding commitment from you that you'll sell your interest to them for that price at a later date. They enforce this verbal agreement by having you sign a Purchase and Sale Agreement (PSA). They'll then immediately shop your interest around in the hopes of finding a company with real money that is willing to buy it from them as soon as they buy it from you. Their profit is actually made up of the difference between the amount they pay you and the amount they can sell it for. The problem for you is that these companies have to build in a margin that they'll keep when they sell your interest to the next group up the chain. This makes it a model that doesn't pay you as much as your interest is really worth. We'll refer to these companies as Tier 3 mineral buyers.
The real drivers of the mineral acquisition industry are Tier 1 companies.
These institutional investors are the companies with the deepest pockets that play the long game. They are the groups that intend on holding interest for many years as part of an investment portfolio made up of thousands of properties. These "buy and hold" firms aren't only some of the largest mineral acquisition firms, but many of the biggest players in this space are actually made up of banks, private equity firms, retirement funds, family offices and hedge funds. These groups intend on acquiring and holding hundreds of thousands of acres, and have hundreds of millions of dollars available to do so. They can afford to pay the highest prices, but unfortunately, many of these companies are very exclusive and don't typically deal with smaller individual mineral owners. These firms don't have the bandwidth to evaluate and acquire thousands of smaller deals per year. They prefer to make fewer, larger acquisitions from the largest landowners or from Tier 2 firms. These transactions are typically for thousands of acres and several million dollars in value.
Since VantagePoint already had longstanding relationships with several of the most established and reputable Tier 1 firms, we developed a concept where small to medium-sized interest is bundled together and then offered to Tier 1 firms, once the cumulative value meets their minimum requirements. Having direct access to these companies allows us to showcase your properties directly to the firms that have the most to gain from buying your interest, regardless of the size or value. These relationships and our bundling concept are the foundation for helping you skip the line and deal directly with the companies that value your interest the most.