There are many benefits to landlords that choose a cell tower lease buyout. Like any decision, your options should be weighed carefully with a qualified cell tower advisor. The team at Tower Advantage are happy to provide you with a free consultation to better understand your specific cell tower lease situation, including the 10 benefits of a cell tower lease buyout.
10. Retirement Planning
By selling a cell tower lease, landlords can fund their retirement accounts with a lump-sum payment in order to maximize their money. When combining this purpose with some of the others benefits listed, selling your lease can help leverage your assets.
9. Capital Improvements
Does your property need repair, restoration or an addition to enhance its value? This is another benefit of a cell tower lease buyout. Landlords have used proceeds from a cell tower lease sale from everything from kitchen remodels to adding on a second story to their residence.
8. Children’s Education Fund
The cost of higher education has increased exponentially over the last several decades. Even parents that have saved regularly since their children were young, face the difficult realization that it still may not be enough with the rising costs.
7. Sell Your Property For More
When landlords sell their cell tower lease separately from the rest of the property, they can often increase their sales proceeds. That is because the companies who only purchase the cell tower leases value them differently than parties looking to acquire the entire property.
6. Pay Off Your Mortgage
A cell tower lease buyout can help your balance sheet and your cash flow. Without a mortgage, you can often use that extra money towards other things that provide you with more “bang-for-your-buck!” We always recommend consulting your tax advisor for these situations.
5. Unforeseen Life Event
An unforeseen life event can often create many problems that are difficult to overcome without the necessary resources. Many times, that unforeseen life event can be solved with money. Whether it is a legal issue, a potential bankruptcy, or a health concern, a cell tower lease buyout may provide you with the money necessary to get back on track.
4. Improve Your Business
Since cell tower leases are not guaranteed, and often have termination clauses that are less than 90 days, banks often do not provide loans that are collateralized by cell tower leases. A cell tower lease buyout can provide a business owner with the funds necessary to do a variety of things to better their business situation, including expanding their business by adding more employees or more locations.
3. Mergers and Acquisitions
Mergers and acquisitions can result in the loss of a cell tower lease. When companies merge or are acquired, there are cell sites that often overlap or become redundant in a specific area. These changed circumstances cause the company to decommission cell towers. Some examples include Nextel and Cricket tower leases that lost all of their value although they were once worth hundreds of thousands of dollars.
2. Avoiding Technology Risks
Technology is always advancing. When it changes, or becomes obsolete, the leases associated with that technology lose their value. A cell tower lease buyout provides an option for landlords to avoid this risk.
1. Value of Money Today
Have you ever heard of the time value of money (TVM)? The TVM is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. Although a cell tower lease buyout will not necessarily provide you the exact same amount today, the concept still holds true in light of other variables that relate to a cell tower lease’s potential longevity. These are just 10 benefits of a cell tower lease buyout.
Contact us today to learn more about whether
a cell tower lease buyout is right for you.
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