Website design By BotEap.comCell Tower Lease: Charge It Or?

Website design By BotEap.comThere are several ways to convert your cell tower or rooftop lease into cash without giving up title. Like any other real estate, you can choose to sell your lease, go into a joint venture with your lease, or recently the option to refinance your lease is now possible.

Website design By BotEap.comThis gives you, the landlord, more options than you’ve ever had to get the cash you need, when you need it, no matter why you need it. Let’s explore these and see if one of these is for you.

Website design By BotEap.comSell ​​your cell tower lease

Website design By BotEap.comFor the past twenty years, selling a cell phone tower rental was the only method to convert that cash flow into a lump sum. Private and Wall Street buyers paid cash for the leases, giving investors an above-average income stream. There were risks that some leases would lose their value due to carrier mergers and acquisitions, but these were discounted and the reward proved to be worth the risk.

Website design By BotEap.comAs this set of telecom-based assets has evolved, risks have skewed downward and buyers tend to pay more for basically the same assets. There are also more players who are willing to bid even higher on purchase prices that are actually allotments of these leases ranging from 30 to 99 years. During these periods of time the buyers obtain the benefit of receiving the income that is produced. They also run the risk of a partial or total loss if a carrier or a set of carriers choose to abandon or finish a tower or rooftop.

Website design By BotEap.comJoint Venture the lease of your tower

Website design By BotEap.comWhat? Yes, sell a portion of the property in your lease or sell part of the time you have left in your lease. Almost anything is possible, as long as it makes sense to someone who is willing to pay for the reward they might receive. Remember, you have a cash flow and that can be sold if it is discounted enough to allow someone else to make a profit.

Website design By BotEap.comWhat I like best about the JV (joint venture) possibility is that you can get your cake and eat it. Sell ​​half and still receive half of the income. Here’s the sweet part; You have a professional manager on board who will take care of this lease until, forever, if planned correctly.

Website design By BotEap.comWhen the time comes to renegotiate the lease, your ‘manager’ will do the best he can because he has an interest (just like yours). Whatever other operator your ‘manager’ can attract, the more revenue you will get.

Website design By BotEap.comAnd you have a built-in buyer in case you ever decide to ditch your lease balance.

Website design By BotEap.comRefinance your cell tower lease

Website design By BotEap.comThis is new and huge. Until recently, a bank wouldn’t lend you a penny on your cell tower lease for good reason; it had a release clause. This meant that the carrier of the cell phone, its tenant, could, for any reason, just 30 days in advance, withdraw from the lease.

Website design By BotEap.comWe have discovered a source who has learned the risk / reward calculations (probably former cell phone tower buyers) and is willing to loan money to build new towers, loan money to buy a tower lease, or even group leases. They will loan up to $ 25 million for the appropriate project.