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Mineral Rights Investing Explained for Real Estate Investors

By January 7, 2026Real Estate Pros Show

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Show Summary

In this episode of the Real Estate Pros podcast, host Micah Johnson interviews Tommy Brachey, an expert in mineral rights. Tommy shares his journey into this niche market, explaining how mineral rights can be a lucrative investment, especially when combined with 1031 exchanges and self-directed retirement accounts. He discusses the importance of education in this field, the risks involved, and how to identify and acquire mineral rights. The conversation highlights the unique aspects of mineral rights as a real estate asset class and the potential for passive income it offers.

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    Tommy Brachey | Mineral Rights (00:00)
    In mineral rights, unlike traditional real estate, you can deed down to the penny. What do I mean by that? Well, if you wanted to just deed the doors to a house, you can’t, right? You’d say, well, that house is a million dollars, but I only have 300 grand. Okay, well, you can’t buy 30 % of the house. Mineral rights, you can do that. If I have a $1 million mineral rights property, and you’re like, I only have or I only want to spend $300,000.

    or you can make it obscure. I only want to spend $301,000.10. You can do that. I can essentially split the mineral deed into two separate standalone deeds and deed you $301,000.10 worth of mineral rights. And I retain the remainder. have that portion, if you will. Although that portion is now your whole piece, if that makes sense.

    Micah Johnson (02:24)
    Hey, everyone. Welcome to the Real Estate Pros podcast. I’m your host, Micah Johnson. And today I am joined by Tommy Brachey who is making some serious waves in a niche that I’m excited to discuss with you in the mineral rights world and really introducing me to an asset class I didn’t know much about. So I am excited for our audience to get to hear this, possibly find out something you haven’t heard and unlock a door that you didn’t even know existed. So Tommy.

    Pleasure to have you, man. Thanks for joining me. Absolutely, man. So let’s dive in. First off, for people that don’t know much about you, give us a short rundown of who you are, what your main focus is, and what markets you’re operating in.

    Tommy Brachey | Mineral Rights (02:53)
    Nah, I appreciate you having me on the show, Micah.

    Absolutely. So Dallas, Texas is home base for me, but I do travel the country putting on 1031 exchange and self-directed IRA and solo 401k education. But the reason I put on those seminars and networking events is all those roads lead to transacting and mineral rights because mineral rights are compatible with those retirement vehicles and the 1031 exchange. ⁓

    The reason I travel all over the country to do that is, like we talked about backstage, Micah, is nobody Googles what I do. It’s very niche. Some people say it’s a niche within a niche because a lot of people don’t know about self-directed plans or 1031s in the first place. And then people that do know about those vehicles don’t know that mineral rights are compatible with them. that’s, you know, that 30,000 foot view of what I do is I put on educational seminars, panel discussions.

    ⁓ as well as in-person networking events, especially here in my backyard in the Dallas-Fort Worth area. ⁓ That’s kind of the meat and potatoes of what I do, but that’s really the tip of the iceberg.

    Micah Johnson (04:13)
    Okay, so let’s rewind back to the beginning. Let’s find, I’m interested in, want the audience to know how you got to where you are today. What was that journey that led you to something people don’t even know how to Google?

    Tommy Brachey | Mineral Rights (04:26)
    Right, right. I usually make a joke when people ask me that question. If you know what a plinko board is, you drop like the ping pong ball and it hits the pegs on the way down. I kind of fell into it to be completely honest with you. You can do all the planning you want, which you should, but it doesn’t mean you’re going to necessarily land in your predetermined spot, right? So, you know, I’m formally educated in real estate and finance, double majored in that at the University of North Texas a while back.

    But out of college, I was in the real estate finance and mortgage space for about seven and a half, eight years. Ultimately decided I wanted to do something else. The industry treated me well by and large. towards the end of that stretch, this might sound fancier than it needs to, but mutual friends of mine introduced me to a geophysicist who is in the oil and gas space and effectively the mineral rights space as well.

    ⁓ So, you over the years, you know, I started to kind of ponder like how do I bring my knowledge and my network into what you do, right? So that’s kind of where we landed initially was putting on the 1031 exchange education, right? Which, I’ll say this, you know, I mentioned I was, you know, I have a degree in real estate and finance. 1031 exchanges might have been a footnote, might have been in the glossary, you know? ⁓ And I’m a licensed real estate agent as well. ⁓

    Currently advisor vice president with the EXP Commercial. We can touch on that a little bit if we’d like. even taking the real estate exam for your license, 1031 exchanges and mineral rights were at best a footnote. So I talk to professionals all the time that are very seasoned, very skilled and knowledgeable and successful in their lane ⁓ that know very little to sometimes almost none ⁓ of what it is that we’re talking about here today.

    Micah Johnson (06:08)
    Yeah.

    Tommy Brachey | Mineral Rights (07:13)
    If that answers your question.

    Micah Johnson (07:13)
    I think you

    said it well earlier with it. It does. think what you said well is that niche within a niche, which is one thing I love about real estate in general is real estate is such a big term and you can find your different place in it that really lines up with you as a person, right? So listening to your story on your arc there, you got into the industry in one version and then underneath the same umbrella, leverage those same skills and understanding to

    Tommy Brachey | Mineral Rights (07:25)
    Mm.

    Micah Johnson (07:41)
    kind of shine a light on something most of us can’t see.

    Tommy Brachey | Mineral Rights (07:45)
    Absolutely, absolutely. I might steal that, that’s a pun, because you can’t really see underground for mineral rights.

    Micah Johnson (07:53)
    Right, there you go. Intended, unintended. Okay, so let’s dig in with that. What conversations with that geophysicist really started to click in your mind to say, okay, hold on, there’s a connection here. You’re talking about something that I can leverage my expertise into and create a business out of.

    Tommy Brachey | Mineral Rights (08:11)
    Absolutely, absolutely. This will start with the 1031 exchange aspect. In the mineral rights space, unlike what I call, what I refer to as traditional real estate, think your raw land, think your residential home like a rental, or think even like commercial building like a Starbucks or an office building, right? Consider that traditional real estate for these, for my context. So when you’re 1031 exchanging, well first off for your listeners, 1031 exchange in quick layman’s terms.

    is when you buy or sell an investment property, you sell it, your gain, I should say, or your profit is subjected to capital gains taxes, generally speaking. What the 1031 exchange allows you to do is if you sell it, but you utilize a 1031 exchange to acquire a replacement property that’s also deeded real estate for business or investment purposes, you can defer or essentially not pay now.

    those capital gains taxes as long as you use those would-be tax dollars to buy that replacement property. So it’s technically not tax free, it’s tax deferral, but there are strategies to, they call it, not to be morbid, but they call it swap till you drop, where you can defer, defer, defer until the time of your eventual death, but we can get into that later. Yeah, so essentially, you know, the perk of this asset class, or what really got my wheels turning was the fact that

    Micah Johnson (09:28)
    Interesting. Okay.

    Tommy Brachey | Mineral Rights (09:36)
    In mineral rights, unlike traditional real estate, you can deed down to the penny. What do I mean by that? Well, if you wanted to just deed the doors to a house, you can’t, right? You’d say, well, that house is a million dollars, but I only have 300 grand. Okay, well, you can’t buy 30 % of the house. Mineral rights, you can do that. If I have a $1 million mineral rights property, and you’re like, I only have or I only want to spend $300,000.

    or you can make it obscure. I only want to spend $301,000.10. You can do that. I can essentially split or bifurcate the mineral deed into two separate standalone deeds and deed you $301,000.10 worth of mineral rights. And I retain the remainder. have that portion, if you will. Although that portion is now your whole piece, if that makes sense.

    So what does that mean in a 1031 exchange? It’s, let’s use easy numbers, right? You have a $1 million exchange and your replacement house is, you’re selling a rental house and your replacement rental house that you wanna buy is $799,000. It’s like, okay, great. But you have $201,000 left over. That’s subjected to capital gains tax, because you’re not using it. They call that the boot money.

    essentially the remainder. So what I’m able to do, and this is one of the first mechanisms we implemented from a business model perspective is I’m not gonna try to talk anyone out of their replacement property that they’ve already identified. I’m gonna ask, what are you doing with that $201,000? And it’s like, well, the story usually is I can’t find anything at that price point that’s savory, you know? And I don’t wanna add cash on top to buy anything else. So they feel kinda stuck.

    And capital gains on $201,000 could be, depending, every situation has plenty of variables, but it could be as high as 50 grand. It could be $30,000 or $70,000. You know, that’s a lot of tax money, generally speaking, especially on the larger exchanges. So what I’m able to do is come in and just be like, identify me as your second or your third replacement property in an exchange. I will deed you that exact remaining boot amount or remaining dollar amount.

    in your exchange to optimize your 1031 exchange, save the day from a capital gains tax exposure perspective for you, and to kick it all off, you’re gonna start getting cash flow monthly, directly from the operator. Now, I try to avoid industry terms like we talked about backstage, but an operator is simply who’s drilling on your property. Is it Exxon, Chevron, Conoco, what have you, right? So that’s kind of the step one. It’s like I satisfy those that remainder.

    That applies for residential or commercial transactions. Like I mentioned, I’m advisor vice president with the EXPs commercial arm for that exact reason. ⁓ Except now in a commercial transaction, you’re looking at 20, 30, 40 million dollar plus exchanges with significant dollars at risk from a tax exposure perspective. But with that being said, you know, I accommodate the residential crowd all the same. ⁓ Then we also do full exchanges. Yep.

    Micah Johnson (13:24)
    think that’s fascinating.

    Real quick, let me cut in. think that’s fascinating on that particular part about the boot money. Because having, I’ve been in real estate since 2014. I have worked with a couple of 1031 exchanges in my career. And that right there, that leftover has happened every time. And it’s created massive amounts of stress in the process.

    Heck, it’s even killed deals where they think I can’t do that deal or they’ll go look for a deal that takes all their money and then they have to add some more in and it’s not really getting that full benefit. So I’m blown away by that. That’s awesome.

    Tommy Brachey | Mineral Rights (14:01)
    Yeah, it’s a huge perk because people just don’t know they have options, but they also don’t know that they could Google this, right, because they don’t know it exists. So that’s again why I do these conversations with you on podcasts. It’s why I do the in-person events across the country, simply because people rarely stumble upon this information on their own online.

    Micah Johnson (14:11)
    Right? Right?

    It seems rather difficult to string together, right? And in this particular asset class, like it’s, it’s, it’s easy to get on and Google single family and learn about fix and flipping or buying, holding, or doing that. It’s, it’s a little simpler still to look up commercial stuff. But what you’re talking about is that again, niche of a niche where in reality though, the value it brings to these particular customer types is phenomenal.

    if you can really solve that problem for them. So when you’re traveling around and speaking, who’s your primary audience that you’re educating?

    Tommy Brachey | Mineral Rights (15:00)
    Yeah, I can cast a really wide net to be completely frank with you, but my primary audiences consist of fellow agents and brokers like myself. I’m an agent, not a broker to be clear. But whether they’re residential or commercial, you know when I’m talking to the residential folks, it’s usually, I make this joke and I stole this term from a friend of mine, recovering landlords you know. They’re tired of dealing with the tenants.

    Yeah, the toilets, the trash, the property tax, the maintenance, the insurance requirements. I mean, the unexpected bills. You get where I’m going, right? Because a lot of landlords, you know they get into this space thinking it’s passive income or at least close to it. And almost every single one of them have a rude awakening that, this is at least a part-time job with expenses. you’re essentially running, yeah, you’re essentially running another business or

    Micah Johnson (15:35)
    Yeah? Yep.

    at least.

    Tommy Brachey | Mineral Rights (15:55)
    that passive business you found out is very active. Which, you know, I mentioned a few things there. Yeah, no doubt about it. so that’s one primary target. The others are real estate agents and brokers that just typically have real estate investor clients, right? Because remember, middle rights are technically real estate. You get a deed to this, just like you do to your house or a piece of raw land or a commercial office building. It’s the same.

    Micah Johnson (15:58)
    you’re right there.

    Tommy Brachey | Mineral Rights (16:17)
    It’s just not your common sense flavor of real estate, which again, that’s why I have to spread the awareness. So, you know when I’m talking to brokers and agents that have, real estate investor clients, I’m saying put me on the menu, you know, especially if they’re doing a 1031 exchange. But if you know, you don’t have to 1031 into this, by the way. You can just buy these with cash, of course. But the 1031 exchange market is underserved. So, you know.

    Have these conversations with the mister or missus broker to your clients and if they have an interest or an appetite to even just learn more about the asset class, make the introduction. And if you’re a real estate agent or real estate broker, you know there’s financial incentivization for that too. There’s something in it for everybody to win. Just keep in mind it is real estate.

    Micah Johnson (17:01)
    So they can still

    make the commission off of this deal. There’s still a way to get paid. It’s, it’s man, that’s, that’s, I’m just sitting here. My mind’s kind of spinning because it is, we’re digging into stuff I haven’t heard. And again, cause it’s not just, it’s not your normal thing that you know. So, okay. I’m a land owner. Let’s dig into some nuts and bolts of it. So I have a piece of land or I’m buying a piece of land to do this with.

    Is there a particular place I want to look in America? there a particular, where am I trying to be for this?

    Tommy Brachey | Mineral Rights (17:34)
    Yeah.

    Yeah, absolutely. That’s a great question. And first, to just to be clear on the terminology, when when you’re saying land, we’re talking about the subsurface land, the subsurface estate, because just because you buy the land doesn’t mean you own the mineral rights. Oftentimes, not always, but often. Yeah. So oftentimes they’re severed. So somebody you might own your house, which means you also own the surface estate or the land. But that doesn’t automatically mean you own the mineral rights.

    Micah Johnson (17:44)
    Yeah. Yeah.

    Okay, let’s dig into that.

    Tommy Brachey | Mineral Rights (18:03)
    It also doesn’t automatically mean you own the air rights. By the way, air rights are technically real estate too. That’s not my wheelhouse, but they exist. the truth is, if you don’t know if you own the mineral rights, you probably don’t, right? Now, that’s not always true, but that’s a good, usually safe rule of thumb, right? So to get back to your question though, if you bought like some mineral rights anywhere in the country, is there,

    Micah Johnson (18:04)
    Okay.

    Tommy Brachey | Mineral Rights (18:29)
    Are there preferred locations? Absolutely. Just like in traditional real estate, location, location, location, right? Think about it, if you’re buying a house in, you know, Manhattan or for people local to DFW Highland Park, right? It’s not going to be the same as if you bought it in, you know, in no disrespect to anybody living in rural Kansas, but your real estate usually isn’t worth the same per square foot, right? The same is said for mineral rights.

    The formation, a formation is like an underground, think of it as, you can think of it as a reservoir to keep it in layman’s terms. But there’s an underground deposits of oil and natural gas in the Permian basin, which is in West Texas and southeastern New Mexico. That is the highest producing oil basin on planet earth as of time of this recording, not just in the United States. Right. And that’s primarily the sandbox that I operate in. There are exceptions. There’s a

    There are formations in Louisiana with natural gas that we buy from time to time. Same thing with Colorado and Wyoming. But our bread and butter is the Permian Basin, which again is West Texas and Southeastern New Mexico. That’s kind of where the players play, so to speak. That’s where your Exxons are actively drilling, your Chevrons, your Conicos, your SM Energy, Diamondback. Those are all the big names in the industry.

    They’re there and they’re there in abundance for a reason.

    Micah Johnson (19:54)
    Yeah, they’re not guessing. That’s what those geophysicists are for. They go find where that is and understand that’s a cool job. I’m based out of St. Augustine and when I was a realtor years ago, I’d sold a really historic house here in downtown and the buyer was a geophysicist out of Italy is where he’s from, but he was working out in Texas. And that was my first time hearing of somebody say that they even look for that underground.

    Tommy Brachey | Mineral Rights (19:56)
    Right. Exactly.

    well.

    Micah Johnson (20:21)
    what he did, like his way of doing it. Cause I never thought about how you go find it. I don’t know, dousing rods. What are we doing here? But the science behind how you go look for that’s really powerful. Yeah. Well, Jen ain’t just shooting a rabbit and holes popping up. Okay. Let’s dig in for a second on that.

    Tommy Brachey | Mineral Rights (20:27)
    ⁓ Yeah, it’s not like the Beverly Hillbillies.

    Yeah, yeah, unfortunately it’s not that easy.

    Micah Johnson (20:42)
    how do you go specifically look for mineral rights then? So if most likely whoever owns the land doesn’t own the mineral rights, how do you find out who does?

    Tommy Brachey | Mineral Rights (20:46)
    Hmm.

    Yeah, that actually can get a little tricky. There’s a couple ways to do that. I mean, ultimately, you know there’s a saying that everybody has almost in every industry is follow the money, right? So what do I mean in this context? It’s tax rolls, right? You can know who owns what based on publicly available information. Now that’s not a fail safe way to do it, but it’s a starting point, right? Because a lot of people own these ⁓ own…

    just real estate in general or assets in general under an LLC and that can afford you depending on how you structure it, some anonymity ⁓ or at least some gatekeeping. ⁓ But there’s also ⁓ family offices own these things, large investment groups own it. ⁓ They will, and I could talk about that for an hour, but essentially there are family offices that are willing and able, excuse me, to divest some of their assets ⁓ at certain points of time.

    ⁓ One example of that would be if you own mineral rights and let’s just say Exxon for the sake of example sends you a letter in the mail saying they’re adding new wells to your property. When I put on my classes for mineral rights, I make a joke. It’s like that’s like Christmas Day. ⁓ Coincidentally, we’re recording this like the day before Christmas Eve, but ⁓ getting that letter in the mail is like Christmas Day because all that means for you as a mineral rights owner is your cash flow in about seven, eight or nine months when those wells are completed and fully operational.

    Your cash flow is going through the roof and you don’t get a bill as a mineral rights owner. You don’t get a cash call as a mineral rights owner ever. In fact, in Texas, this isn’t true in every state, but remember the Permian is primarily in Texas. ⁓ There’s no traditional property tax. There is ad valorem tax, but it is small, very small, which is a huge perk for the asset class, especially for real estate investors, ⁓ because Texas, stereotypically speaking, is a very tax friendly state.

    Micah Johnson (22:35)
    Mmm.

    Tommy Brachey | Mineral Rights (22:47)
    But the exception is property tax. You get clobbered with property tax in Texas. So the fact that mineral rights are by and large exempt from that, again, with the exception of ad valorem, is a massive perk. But as far as finding the mineral rights, it’s people on tax rolls, family office relationships we’ve developed. The geophysicist I briefly mentioned, he has a network that’s about 23, 24 years old at this point out in the Midland, Texas and Permian area.

    Micah Johnson (23:02)
    For sure.

    Tommy Brachey | Mineral Rights (23:17)
    So we get first look at like all the off-market mineral rights transactions amongst very few others. And we acquire our mineral rights in cash. We don’t have any debt insurance or debt facilities that we leverage. There’s no red tape to cut. There’s no third party to wait on for a feedback loop or approval perspective. So they like working with us, right? We’ll send a wire, you know, same business day or the next, right?

    ⁓ So that’s why they like doing business with us, but that’s also kind of the secret sauce of why we have the access that we do. ⁓ It’s decades of networking out there and it’s decades of just good and fast business out there. ⁓ So it’s kind of why your everyday real estate investor can’t just go grab it. There’s no Zillow for this, so to speak. There are mineral rights exchanges like the US Mineral Exchange. ⁓

    But it’s not as robust ⁓ as your Zillow of the world. But there’s some alternative ways. But generally speaking, those properties are picked over. You know the the meat and potatoes of the transactions in this space are primarily, if not exclusively, off market.

    Micah Johnson (24:24)
    Which makes sense. It really does because the fact is, of it’s hard to Google and it’s hard to put these lines together, unless you’ve taken the time to understand exactly how it works, you wouldn’t even know where to start. Real estate investing, you’re typically looking out, here’s the house. You can see something upfront. You know where you’re beginning. We’re here. This is a whole different animal.

    Tommy Brachey | Mineral Rights (24:41)
    Exactly.

    Right, no, you’re exactly right. And what makes it a little tougher to grasp just at the offset is it’s not visual. It’s not a visual asset class, even though it’s real property, even though it’s deeded real estate. I mean, you think about land and office building or a house, you can click through the photos, you can get a feel for it. Like, do I love it, do I not? Will this work for me, will it not?

    It’s a different kind of pictures for mineral rights. You’re looking at seismic data. You’re looking at charts. You’re looking at projections of cash flow. Very different mindset, very different mentality that you have to have when you’re shopping around and vetting this asset class, which can be intimidating. It’s not that it’s rocket science. It’s not that it’s overly complicated. It’s just that it’s foreign to most. people, human nature, they kind of steer away from what they don’t understand. But.

    People start to listen when you start to see the ROIs in this space, the truly passive nature of the asset class. I mean, you literally, you acquire mineral rights. You get deed entitled at the county clerk’s office, just like traditional real estate, like your houses. You then provide a copy of your executed deed to the operator, which by the way, we take care for you.

    So again, the operators just say it’s Exxon for your particular property. We let Exxon know, hey, by the way, this was filed at the county clerk. you know, Micah Johnson now owns, you know, 0.05 NRI on this mineral rights property that you’re operating. When you go into pay status, or if you already are in pay status, you need to pay him going forward on a monthly basis. He’s entitled to do that as the owner of that property. From there, you get direct deposit every month. That’s it.

    You pay your ab alarm tax at the end of the year, you’re done. There’s no tenants to manage, there’s no maintenance, there’s no toilets, there’s no trash. You never get a cash call like I mentioned earlier, you never get a bill. If something goes wrong on the operations side, like they have to repair an oil well, that’s not your bill, that’s Exxon’s bill, that’s the working interest guys. They have to take care of that. So essentially it’s the most passive investment out there. I mean you can compare it to, it’s as easy to get dividends on a stock.

    Except dividends don’t pay like this.

    Micah Johnson (27:00)
    Yeah, no man. And it sounds, it sounds awesome. It sounds like a definitely a class that people can get into. What’s some things that they should look out for? What are some inherent risks that could pop up that if someone is thinking about moving this way, what do they need to watch out for?

    Tommy Brachey | Mineral Rights (27:17)
    Absolutely, and when I’m talking to potential clients or putting on a class, I talk about this exact thing out of the gate. I like to rip that band-aid off, so to speak, early. It’s not all sunshine and rainbows, because nothing is, right? You know returns can’t be guaranteed. So what that leads to is there’s two primary risks. There’s technically three, and I’ll tell you about all three. So the first one, and these are gonna sound like common sense after I say them, but the first one is commodity price.

    Right, so in my domain, it’s oil and to a lesser degree natural gas. So, if you hold all other variables constant and the price of oil goes up, well that month’s royalty check is gonna go up. I make a joke in my classes when you have that scenario, it’s like well, you might grumble at the gas pump, but you’re gonna smile walking in from your mailbox, right? Because your check’s paid. You know, it’s like ⁓ well, gas cost me a few extra bucks, but my checks are a lot higher, you know.

    Now, conversely, which is the crux of asking the question, you what are the worst case scenarios or the downside scenarios, is again, you hold all other variables constant, oil price goes down, that month’s royalty check will reflect a lesser amount most likely. The same exact thing can be said about risk number two, production volume. Again, it’s gonna sound like common sense after I say it, but think of the number, in my instances, production volume is pertained to the number of barrels of oil.

    coming out of the ground that you get in a given month. So again, you hold all their variables constant, including oil price for that given month. If production’s up, your check’s gonna be higher and vice versa. Now, I mentioned there’s really a third variable here. Some people call it a risk and I accept that. I don’t really look at it that way, but it’s from a time value of money perspective. You might recall earlier I mentioned that

    know, wells can take seven, eight, nine months before they fully go online and they’re operational. So it brings me to a point. We buy properties, generally speaking. Our properties have newly permitted wells on them. That way our clients can get what’s called flush production. What that means is essentially the first drop of oil that comes out of those wells. And you want that as a mineral owner because think of it as, I make an analogy in my course.

    like a two liter of Dr. Pepper or a two liter of Sprite, first time you open that two liter, the most pressure, you hear it, the most pressure comes out the first time you open it. The second, third, fourth, fifth, 10th. Yeah, even as high as the 10th time, you have a lot of pressure, but nothing’s ever like that first open, right? You want that first open because that gets you the front loaded ROI. You get higher production and it slowly declines over time and it kind of plateaus or valleys, if you will, I should say.

    Micah Johnson (29:52)
    Okay.

    Tommy Brachey | Mineral Rights (30:10)
    You know after about month 18 to 24 you have a more of a steady cash flow on new wells But if you can capture the first 18 to 24 months on a new well you absolutely crush it generally speaking So that’s why we time it that way That’s what makes our OIs and our property so attractive to invent real estate investors now What does that have to do with the third variable? Well the seven eight nine month time frame if you get a property Let’s just say you buy it from us to keep the example simple

    If you buy it from us right after it’s permitted, like, we got it, brand new permitted property, nice. Then we have a real estate investors like, I want it. We’re like, perfect. We transact. Here’s where they have to wait for that first month’s royalty check because the wells aren’t done yet. So while you do get paid monthly, you might have to wait X number of months, whether it be three, four, five, six, depending on how early you bought the property.

    Micah Johnson (30:59)
    Gotcha.

    Tommy Brachey | Mineral Rights (31:07)
    then you start getting your flush production, right? So we just do that for expectation management. We’re handholding our clients. It’s like, hey, look, you got in early on this. ⁓ You have X number of months until they’re expected to have those wells completed and get you into pay status. Now, every now and then we do have properties that don’t have new wells they’re currently producing. You’ll get checks immediately on those after they administratively process the transfer. But generally speaking, our business model is to get those newly permitted wells, if that makes sense to you.

    Micah Johnson (31:37)
    It does, it does. And that’s a fascinating thing to think about of making sure they know that lag, right? That there’s going to be the time frame and helping them adjust for it to know this is going to be a it’s a good asset class and it’s going to work. You just need to plan on this because that’s, man, expectations are everything out of the gate. And if someone’s thinking they’re fixing to just turn that old money on and it’s not going to be on yet, that yeah, that could be a little bit of a shock.

    Tommy Brachey | Mineral Rights (31:44)
    Yes.

    Yeah, yeah. you know, that comes with growing pains over time. You know, it used to be something when we were new, it’s like we’d mention it. Because to us it’s common sense, but don’t ever assume things, right? So you know, we do some hand holding with some people early on years ago and we’re like, guys, we gotta drive this point home. So we do.

    Micah Johnson (32:19)
    No.

    And we were talking a little bit about that backstage, just that how important education is in the real estate business in general. But the further you niche down, how important it is. Because when you really get into the nitty gritty of asset classes, you start to see, wow, okay, here’s the information and the meat that you really need to understand to make sure you’re successful at.

    Tommy Brachey | Mineral Rights (32:38)
    Mm-hmm.

    Yeah, yeah, it’s again, it’s, it’s not rocket science. It’s really not that complicated, but common sense can fail you, right? Don’t try to logic your way through this. Don’t be like, well, that would make sense. Why would it be any other way? Remember, a lot of this stuff is simply what happened to be regulated into existence as a rule or as a perk, you know, ⁓ there’s no logic in your way through that. ⁓ So I tell people in my classes, or when I’m presenting one on one with with interested parties,

    It’s ask any questions. There are no dumb questions. And generally speaking, feel free to interrupt me. Like, I don’t want you to forget a question as we go through either if I’m going through the asset class as a whole or if we’re diving into a particular mineral property, ask, ask, ask. Some people, they say like, this is a dumb question. I’m like, it’s probably not. You know, just, I can’t drive that point home enough, really what I’m saying. Yeah.

    Micah Johnson (33:42)
    Probably.

    I couldn’t agree more because, typically if you have it, someone else does, just say it out loud and you’ll help the whole class. Just get it out there, get the information out there.

    Now, Tommy, it seems like you’re the expert or at least one of the experts in this industry. If someone wants to tap into your knowledge and reach out to you, what is the best way to contact you and touch base?

    Tommy Brachey | Mineral Rights (34:05)
    Yeah, yeah, I mean my direct line, you can call, you can text this, if you really wanted to, could FaceTime it, I suppose. But my direct line is 214-998-8198. My email address is mgmt, short for management, at keyrealestateconsulting.com. That also is my website, keyrealestateconsulting.com.

    And from a social media perspective, I’m primarily active on LinkedIn. I do have presence on other platforms. But if you search for Thomas Brachey, that’s B-R-A-C-H-E-Y, you’ll find me. I’ll be the only search result on LinkedIn. Yeah, those are the best ways to get in contact with me. I’ve got a whole wealth of knowledge on this stuff published as well. I have three books published on the topic. One of them’s for 1031s. Another one’s for mineral rights themselves.

    And another one is, maybe we can do another podcast someday, is on the self-directed IRAs and solo 401Ks and the type of real estate assets those can hold, mineral rights being one of them. I also have some published webinars I’d be happy to provide. So there’s also a one-pager, and the one-pager really drives the value, I think. People like the fact the books exist, but that one-pager people are willing and able to read. But for those of you that like to read, I’ve got plenty for you.

    Micah Johnson (35:05)
    Definitely.

    Excellent. Well, perfect, man. I listen, I appreciate your time. You’re story your perspective here. We will make sure that those the number links to you are in the comp or in the description below on this. If you’ve gotten value out of this by tuning in today, please subscribe to our podcast here at Real Estate Pros. We’ve got some more conversations coming out with operators just like Tommy, who are really making a dent in the real estate space and discovering those niche asset classes that can set you apart, change your life.

    Thanks so much for joining us today. We’ll see you on the next episode.

    Tommy Brachey | Mineral Rights (35:53)
    Thank you, Micah. Take care, everybody.

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