Is it just the land value or are they trying to get value for the minerals in the ground?

Mine rented for $75 more than I had expected and it is worthwhile.

However, an exception exists if the collateral is something that is tied to a particular piece of real property, such as timber, mineral rights, or fixtures.

Just for reference between my grandpa, his two deceased siblings, and another landowner in town, they own 15,000 mineral acres of which roughly 5,000 are surface. 

And another issue, these will be commercial loans, with similar debt coverage ratios required and showing the ability to manage/service, so that will be a hill to climb for most small investors.Accounts receivable financing is another issue and a specialized arena, some banks do and there are financing companies that deal exclusively in A/R, leases and other annuity or cash flows, such as mineral rights and royalties.Any time there is a stream of cash from any credit worthy source, there will be a present value and a market for investing in or based on that stream.

So even if it burns to the ground, I will still have more than I started with - and a piece of land with mineral rights to boot.

When we were snooping at the County office discussing a multi family project for the miners, the head of economic development put us in contact with the prison warden.

If you look at the definition of a security here:www.sec.gov/about/laws/sa33.pdfyou find:(1) 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.I've highlighted some of the terms that could refer to a loan.Now, like Corey Dutton I don't really think the SEC trolls craigslist looking for these ads.

Vacuum then mop with mineral spirits.4.

@Shaun Reilly,In substance the two do not differ because they are both a "Security", though the loan may come from a lender and fall under lending regulations.If the loan is from a private person you are technically still engaged in offering a security by strict definition.From the SEC:Sec. 2 SECURITIES ACT OF 1933The term ‘‘security’’ means any note, stock, treasurystock, security future, security-based swap, bond, debenture,evidence of indebtedness, certificate of interest or participationin any profit-sharing agreement, collateral-trust certificate,preorganization certificate or subscription, transferable share,investment contract, voting-trust certificate, certificate of depositfor a security, fractional undivided interest in oil, gas, orother mineral rights, any put, call, straddle, option, or privilegeon any security, certificate of deposit, or group or index of securities(including any interest therein or based on the valuethereof), or any put, call, straddle, option, or privilege enteredinto on a national securities exchange relating to foreign currency,or, in general, any interest or instrument commonlyknown as a ‘‘security’’, or any certificate of interest or participationin, temporary or interim certificate for, receipt for, guaranteeof, or warrant or right to subscribe to or purchase, anyof the foregoing.