How to Get Good Deals on Your Cell Phone Tower Lease?
There needs to be proper evaluation and appraisal of cell phone tower lease to get fair market value. The problem here however is, your average real estate appraiser is often not an expert in tower lease procurement. There are different factors that affect cell tower lease purchase and valuations and these include wireless carries lease values, are the cell tower leasing terms favorable for lease buyer, does the cell site enables extra carriers to pay rent, location of the tower, seller’s credit worthiness, how aggressive is the buyer’s tower portfolio and if the cell tower matched the requirements of buyer.
The sad thing is that, a lot of cell phone tower lease buyout offered to wireless landlords are quite low. There are some lease buying financial institutions that are deliberately taking advantage of sending letters to the wireless landlords which results to confusion and doubts in them. This is a result of advancing and innovating cellular technology as well as wireless carriers who might merge which cause the tower lease to ultimately lose its value. This tactic they do makes them target landlords and offer them to buyout their cell tower lease for a low price.
It just doesn’t make sense that you have to cash out of cell phone tower lease all because you are afraid that sooner or later, the tower will be obsolete. If it really has no value, then why would they ask you to sell it to them? Many people these days are bandwidth hogs given the fact that they all have easy access to the internet using their smartphones. This forces carriers to meet the higher capacity load resulting to needing more tower leases.
The best case scenario which is in favor of the landlord when they’re presented with the lease purchase offer is when it’s presented by a reputable and known investment group. Wireless capital investors are seeking to obtain specific tower leases in order to expand their portfolios. The buyout deals from the wireless financial service funds have a tendency to provide better deals compared to industry bottom feeders. It’s because these are the kinds of deals that are taking advantage of uninitiated landlords. While the buyout offers made by these companies are seem reasonable and fair, still you need to make sure that you have taken the time to review it to ensure that you are not being tricked.
One question that most cell site landlords are asking is, what future they do have for cell tower leasing. They weigh options to either take the chance to hold on it and hope that they can get a large monthly rent check or sell it for a lump sum. Like what is mentioned earlier, everything has to be checked thoroughly.