The only real risk to investing in minerals and royalties is tied to commodity prices. Once the assets are purchased, you own them (outside of Over-Riding Royalty Interests). You have no monthly operating expenditures in order to maintain your investment or equipment, only annual taxes and that’s only if the interests are producing.
As long as you diversify your holdings to incorporate both oil and natural gas assets located in different basins or areas of the U.S., you should have no concentration risk.
If you’re interested in buying mineral and royalties, or want to learn more about the process, read our blog on How to Buy Mineral Rights or contact us and we can point you in the right direction.