How to Get Good Deals on Your Cell Phone Tower Lease?
The fair market value of cell phone tower lease ought to be evaluated and also, appraised. What seems to be the problem here is that, your average real estate appraiser is typically not an expert when it comes to 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.
But you’ll be surprised to learn that most wireless landlords are offered with a low cell phone tower lease buyout. Some portion of the lease buying financial institutions take advantage of sending letters and wireless landlords which causes doubts in their minds. 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. They prey the fear of these landlords and get the cell tower lease in exchange for a very low price.
It doesn’t make sense that you cash out of the cell phone tower lease simply because of the fact that you’re afraid that your tower might soon be obsolete. If it really has no value, then why would they ask you to sell it to them? These days, smartphones are growing day by day since many more people are bandwidth hogs. In return, this forces the carriers to increase their tower leases to meet high demand of their customers.
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 seek to get specific tower leases to be able to expand their portfolio. The buyout deals from the wireless financial service funds have a tendency to provide better deals compared to industry bottom feeders. The main reason for this is that, they take advantage of unacquainted landlords. You on the other hand must be aware that even though these buyouts are proposed by big names in the industry, still you need to ensure that it is reviewed.
A big question that majority of the cell site landlords asked is, what future they 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.