I have worked in the mineral exploration industry in Canada for the past 10 years.  

I am not sure this debate has occurred here on the boards.First let's understand what the definition of a security actually is:The term ‘‘security’’ means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a ‘‘security’’, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.So right there at the beginning of the definition we see "any note".

Minerals don't adhere as well. 

. = -$20,000Appraisal = -$400total in- $44,000 ($26,000 mine)Rent ASAP $800/mo (approx $2400 net for 6 months)In 6 months, Refi 70% of ARV = $49kQuestions:Am I crazy for taking the 12.75%?  

I live in El Paso, and I studied a Master Degree in EE at UTEP (Go Miners!!).

On a typical move-out/move-in job I had my "standard" tool box plus a materials box containing;the standard paint color I used for rentals-Navajo White, a bunch of paint stirring sticks (for sheetrock repair more than stirring paint), a couple of pieces of sheetrock 2' X 2', Elmer's glue, sheetrock screws, switch plates, a couple of outlets and switches, scrubbing stuff and chemicals, DOORSTOPS, light bulbs, mineral spirits and linseed oil and 000 steel wool for touching up stained wood, paper towels, TOILET PAPER, rags, paint brushes, SMALL LADDER, joint compound.Once you've gone through every room doing the "touch ups" you'll have a good idea if you need to come back with your 8' and extension ladders, paint rollers and 5 gallon can of paint and drop clothes.

That's different than a royalty for, say, gas or mineral rights.

Let me start with mine: Rents in my market have been going up probably 3-6% per year depending on housing type, and I raise my rents to about 2-3.5% Depending on length of tenancy.

., would be land, DSTs, oil & gas mineral rights, etc. 

I locate lost heirs to mineral interests for my day job and I am pretty good at finding people but these people seem to have evaporated into thin air.