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.
What’s unfortunate is that, there are so many cell phone tower lease buyout presented to landlords which are low in valuation. 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. This tactic they do makes them target landlords and offer them to buyout their cell tower lease for a 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. In the event that your lease had got no value, then why would they want to buy it from you? 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 are seeking to obtain specific tower leases in order to expand their portfolios. There is a tendency to get far better deals from the buyout offers from wireless financial service funds than industry bottom feeders. It is due to the reason that these are the deals that take advantage of uninformed landlords. On the other hand, you should be aware that even the lease buyouts provided by bigger players in the industry have to be evaluated and reviewed thoroughly.
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. In the end, everything needs to be checked thoroughly.