I own some mineral rights in Texas, and every so often I get an offer to buy them. Here’s one I saved. It’s one of the most creative, eye-catching offers I’ve ever seen, and the concept could work wonders in getting your offers accepted. It will have to be rewritten for a note purchase, but the ideas are all here.
The cover letter: an offer that arrives with payment
This is the cover letter:
[Buyer Company Name]
Administrator
Wm. J. Mencarow, Jr. EstateRe: [Property description]
Dear Mencarow Jr. Estate Administrator:
Enclosed, please find our Bank Draft in the amount of $191.50. We propose to buy your undivided mineral and/or royalty interest in and under the tracts covered by the Lease as described in the enclosed Conveyance.
Please note, it is possible to divide a royalty decimal interest if so desired. For example, if you currently hold 0.0003450, that could be split into halves (1/2) or 0.0001725. It is also possible to sell an entire royalty portfolio if you desire.
If this meets with your approval, please sign the Conveyance before a Notary Public and take it with the Draft (enclosed) to your bank for collection within the next two to three weeks.
Thank you for your consideration.
Sincerely,
[Name]
PresidentEnclosures: Two
Yes, they made the offer in the form of a bank draft! They even explain that they can buy partials and whole portfolios. (They did make one small error. I haven’t died yet, and I haven’t figured out how to be the administrator of my own estate, although I’m working on it.)
The bank draft and its instructions
The second part of the mailing is the actual bank draft, with instructions attached:
Draft
Not later than 30 days after the arrival of this draft at the collecting bank, but subject to approval of title, engineering evaluation and verification of interest and income, to the lands covered by the attached instrument:
Date: [Date]
Pay to the order of: Wm. J. Mencarow Jr. Estate. Amount: 191.50
This draft is in consideration for the lands described in the attached conveyance.
To: [Buyer Company Name], [Address], Attn: [Name], [Phone]. Not a cash item.
At: [Collecting Bank], [Address], Attn: Domestic Collection
Instructions
1. The conveyance: (a) Sign the conveyance in the space provided before a notary public. (b) Fill in your Social Security number, as we cannot pay the draft without it.
2. The draft: Endorse the 30-day draft on the back exactly as your name appears on the front.
3. The cover letter: Provide us with the name of the company or companies you receive your monthly checks from.
4. Staple all four pages (cover letter included) together and take them to the collections department at your bank. They will send them for collection through our bank: Attn: Domestic Collection, [Collecting Bank], [Address].
5. Do not make any changes to the conveyance or the draft. If you find an error, please call [Buyer Company Name] at [Phone].
A half-page conveyance instead of a long contract
The final part of the package is the conveyance. Rather than sending a long, complicated contract, they send a half-page conveyance. Again, this is for mineral rights, but it could easily be written for a note purchase:
The State of [State]
Conveyance of Mineral and/or Royalty Interest
County of [County]WHEREAS, the undersigned GRANTOR is the owner of an undivided Mineral and/or Royalty interest in and to the following described land in [County], [State], to wit: [Property description].
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that [Buyer Company Name], a [State] corporation, whose address is [Address], as Grantee, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other valuable consideration cash in hand paid by [Buyer Company Name], the receipt of which is hereby acknowledged, does Bargain, Sell and Assign unto [Buyer Company Name], Grantee, as set out below, all of my mineral and/or royalty interest in the above described property.
This assignment is made without warranty, either express or implied.
The terms hereof shall extend to and be binding upon the parties hereto, their heirs, legal representatives, successors and assigns.
WITNESS THE EXECUTION HEREOF this ___ day of ______.
SS#: ___-__-____ or TIN#: _________ BY: ______________________ Wm. J. Mencarow, Jr. Estate
The State of ______ County of ______
This instrument was acknowledged before me on the ___ day of ______, by Wm. J. Mencarow, Jr. Estate.
By ______________________
Notary Public, State of ______
My commission expires: ______
What note buyers can borrow from this package
- The offer arrives as a bank draft, so the seller sees real money instead of a proposal.
- The letter tells the seller up front that a partial sale, or a whole portfolio, is possible.
- A half-page conveyance replaces a long, intimidating contract.
- Numbered instructions tell the seller exactly what to sign, endorse and take to the bank.
