All Forum Posts by: David Pennington

> I would check with lenders though

That's a really good call-out. I will say this is one of several same-size plots split from a larger one and the others have been split in half the same as I'm planning. It's possible they had to find a cash buyer, but I think it's another point to this being mortgage-able.

I followed @Jay Hinrichs advice and checked with the county and they have no zoning regulations about drilling.

So it's possible someone could, however, it seems unlikely from everyone I can find, including the title company's . The original grants were for an 42acre chunk of an 82 acre lot. Since 1925 though the oil industry has moved on from this area and drilling isn't common here. Once this is split into 1.5acre lots and houses are built I doubt someone will try to find all the heirs and try to put a pad behind one of the houses.

It's possible, but seems worth the risk.

Thanks for the recommendation @Jay Hinrichs. The lot is outside of the city limits (just barely) so I'm only familiar with city zoning regulations, not county or state regulations. Do you happen to know what terms I should use to find these?

The contract I could find says the following:

```
...together with the right of ingress and egress at all times for the purpose of mining, drilling and exploring said land for oil, gas and other minerals, and removing the same therefrom.

And said above described land being now under an oil and gas lease originally executed in favor of [Oil Company], Chicago and now held by [Oil Company] it is understood and agreed that this sale is made subject to said lease, but covers and includes of all the oil royalty and gas rental or royalty due and to be paid under the terms of said lease.

It is agreed and understood that of the money rentals which may be paid to extend the term within which a well may be begun under the term of said lease is to be paid to the said [purchaser], and in the event that the said above described lease for any reason becomes cancelled or forfeited, then and in that event, the lease interest and all future rental on said land, for oil, gas and mineral privileges shall be owned jointly by [owner] and wife and [purchaser] each owning & interest in all oil, gas and other mineral in and upon said land, together with interest in all future rente.

This sale is made for and in consideration of the sum of Ten Dollars, cash in hand paid, the receipt of which is hereby acknowledged.

To have and to hold the above described property, together with all and singular the rights and appurtenances thereto in anywise belonging unto the said [owner] heirs and assigns forever, and we do hereby bind ourselves, heirs, executors and administrator to warrant and forever defend all and singular the said property unto the said [purchaser] heir and assignee against every person whomsoever lawfully claiming or to claim the same or any part thereof.
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Thanks for the feedback. I'm paying cash and currently in the options period and going to talk with the title company on Monday. The mineral rights don't bother me as much as them being combined with the surface rights. Once this is two 1.5acre tracks I don't really want to put a house on one/both and then find a drilling truck showing up to install a pump in the backyard.

I am purchasing a 3acre lot an hour outside Dallas which not only fails to convey mineral rights, but also gives "appurtenant rights to use the surface of the land" to someone back in 1925. 

I plan on splitting this land into two 1.5 acre lots as there is enough road frontage, but I'm concerned that someone could show up and want to start drilling in the backyard.

I think someone wanting to drill is unlikely for the following reasons:
- the original owners are probably dead and the ownership is split between inheritance to multiple people
- the lot is too small for them to mess with
- there is only a single active well/pump within 30 miles from what I can see online. This is not a good area for drilling.
- the lot is very close to the city limits and might be included within the next few years
- the rights were from a larger 40 acre tract that were from a larger 80 acre tract that were from a larger....

Nevertheless, I am curious if anyone has recommendations on how to research this?

(apologies for the misspellings in the post title)

I really enjoyed the fact that Dave Green had the advice and perspective of a wiser/older friend. After hearing Green a few times, I was pretty convinced he is the most trust worthy person someone could ever get RE advice from. I'm new to RE myself, but I'm not new to life.

A lot of investors are excited or focused on the one or two things they figured out that's working for theme. Dave could understand that and yet balance it with the other parts you don't hear about until 20-30 years later after a few bad times and life-reflection. It was really refreshing and gave BP a lot of credibility in my eyes.

Life isn't only about the bottom line. Stress, risk, relationships, and all the non-flashy things apart from money count for a lot.

Maybe one day I'll get a chance to meet him myself.

It's possible the market has adjusted some already and will adjust more in the future.

- Personal savings rate as a percentage of disposable income is very low (3.6%)
- Unemployment is very low

Markets don't stay ecstatic or suppressed forever. They always swing to far each direction before returning back to a middle ground then passing through to the other side.

I've never purchased an investment property. I've listened to many ways to structure deals and done my own math and (so far) have not been able to make something pencil out in the RE space that was in my comfort zone of risk. All my money is still in equities.

I'm sure by now at lot of people in my position would have already reached out, but I'm not going to waste someones time until I'm fairly sure I have a path forward.

I'm a mentor of sorts in the tech space and have learned I can't wish/donate/coach/bribe people into having drive. Not greed, but drive and a willingness to put in the time to work and learn on your own with a little direction. It's in every industry.

Requiring people to read a list of books first is an idea I might borrow.