Thousands of land owners across the country have cell towers on their properties and as a result, enjoy receiving a passive monthly income from this arrangement. However, some of them are eager to bring in a lump sum of cash to cover various unexpected expenses. This is where cell phone tower lease buyouts can be a great help.
A cell phone tower lease buyout is a process that involves purchasing the remainder of a cell tower lease from a land owner in exchange for a single lump sum payment. Once the land owner receives the lump sum payout, he or she will no longer receive the monthly rental income for the site. After cell phone tower lease buyouts have been finalized, land owners will no longer have anything to do with the site, even though it will still remain on their land until the lease period comes to an end.
One of the main advantages of lease buyouts is the fact that land owners receive a cash lump sum for existing cell site leases that are on their properties. While some of them prefer to receive the monthly rental income, others have stated that the lump sum payouts have also extremely advantageous to them. In some cases, better investment opportunities have been identified elsewhere that requires a cash injection and other land owners have stated that the cash payouts have enabled them to eliminate debts or fund other projects that are more important to them.
An added advantage of cell tower lease buyouts is that the cash lump sum received by land owners can even be put towards a retirement fund. There are virtually no limits with regards to what these cash payout can be used for. However, if the cash is invested in the correct manner, land owners may be entitled to additional tax breaks. In order to maximize this benefit, it is best for land owners to discuss their options with a tax advisor or specialist investor.
Unfortunately, no one has the ability to predict the future with regards to income and growth figures in the cellular industry. As a result, land owners stand a chance of losing their monthly income from a site lease if the wireless network carrier decide to terminate it. However, if land owners accept cell tower lease buyouts, they are at least guaranteed of receiving fair market value for the lease of their property – even if the initial contract is terminated.
When considering the option of cell phone tower lease buyouts, land owners should ensure that they entrust this process to a company that is honest and reliable. This will enable the process to go quickly and smoothly, and in most cases, these deals are processed in approximately 30 days. If you are a land owner and considering selling the existing portion of your cell site lease, give Towerpoint a call to discuss your options.