Know Your Water Rights!

Posted by 31 July, 2008 (0) Comment
There is a huge natural gas BOOM in Texas, specifically in Tarrant County, and many people are making a lot of money from leasing out the right to drill for natural gas under their property (Wikipadia Article on the Barnett Shale – the geological formation which houses the natural gas). Unfortunately, my wife and I may not be able to capitalize on this as we own a newer home with which the mineral rights probably did not convey. We will, however, be keeping the mineral as well as the water rights for future rehabs and rentals.
No matter what part of the country you live in, if you are a real estate investor who is rehabbing houses to sell, you SHOULD be keeping your water rights.
Image from: http://sueannsnwprblog.blogspot.com/2007_11_01_archive.html
Why, you ask? There’s plenty of water, right? Hello, rain?
While the U.S. does enjoy an abundance of many things, a struggle for water is coming to a city near you (with the exception of L.A. which has been experiencing issues due to a water shortage for a while).
Who is this quack talking about water rights? He doesn’t have any credibility! He’s just some dude who installed a wordpress blog and only has one reader (probably his wife)!
While these objections may be true (my wife does read this), you may want to listen to billionaire T. Boone Pickens. Here is a recent article about Pickens from the Chicago Tribune. Apparently he is buying up water rights in Texas, and maybe you should too.
Here are some other articles to digest:
Even if you are not a real estate investor, you can still cash in. If you own a personal residence, KEEP YOUR WATER RIGHTS! If you are interested in more passive investing, be sure to read the Seeking Alpha article above. The author suggests taking a look at one particular company, Pico Holdings, that owns the water rights in Arizona, Nevada, and a small portion of Colorado. Those are really hot and dry places. Seems like some water may come in handy.
Categories : Real Estate Investing Tags : ,