Buying royalties isn't "set it and forget it." You need to do your homework to avoid overpaying.
The biggest risk is commodity price volatility. If natural gas prices tank, so do your royalty payments. Additionally, buying non-producing minerals is a gamble; many tracts of land may never see a drill bit, leaving you with an asset that generates zero income for generations. buying natural gas royalties
: Once you acquire the rights, payments are typically treated as passive income, often reported on Schedule E and not subject to self-employment tax. Buying royalties isn't "set it and forget it