Top 3 Reasons to Sell Your Wireless Lease

Top 3 Reasons to Sell Your Wireless Lease

As a wireless lease landowner, you have the option to convert your wireless lease into immediate capital. Aside from the obvious reason of receiving a lump sum payment in exchange for your lease, there are three reasons why should you sell your lease. Learn why selling your wireless lease today is the best decision you can make for your financial future.

1. Time Value of Money

Time Value of Money simply means that a dollar received today has greater value than a dollar received in the future. Money is more valuable today because of higher purchasing power and opportunity cost.

• Higher Purchasing Power: Due to inflation, if you were given$100,000 today in exchange for your wireless lease, it could be exchanged for more goods and services today than $100,000 in 50 years. The buying power of $100,000 in 1950 is the same as $998,500 in 2016. Meaning that only 66 years ago, you could buy the exact same amount of goods for only $100,000 but it would cost you $998,500 today. As a result, you have a higher purchasing power today than you will in the future with the same amount of money.
• Opportunity Cost – Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. For example, a $100,000 dollars received today from your wireless lease can be invested now to earn interest, resulting in a higher value in the future. But if you receive $100,000 from your wireless lease in the future, you would be losing out on the interest you could have earned.

2. Technology changes

Remember the first commercial mobile phone back in 1983? The first wireless phone cost $3,995, weighed 2.5 pounds, and relied on 1G analog cellular network. Now jump to today where we have iPhones and Samsung Galaxies costing $600, weighing less than 0.5 pounds, and have access to data on 4G native IP networks. The wireless industry is in a constant state of innovation.

How does this relate to you as a site owner?As technology changes and wireless carriers keep up with the market’s demands of more data, there is no saying how long cell sites and towers will be utilized in the future. Thus resulting in uncertainty of your future monthly income stream from your wireless tenant.

3. Risk of Termination

Since 2004, 56,000 sites have been decommissioned. Cell sites go away for various reasons – market mergers, acquisitions, technology changes, and consolidation. No one can predict if or when your site might fall to decommissioning.However there is termination language in wireless leaseswhich means there is some degree of termination risk. Therefore, the monthly rent you are receiving for a certain amount of time is not always guaranteed.

Understanding these reasons, do you see the power in selling your wireless lease? Speak to a wireless lease expert today who can further explain these reasons and how they can specifically play a factor in your wireless lease situation. Take control of your wireless asset and convert your cell site lease into immediate capital today! Call 866-574-2355 to speak with a wireless real estate expert.

Sources:

http://www.propertymetrics.com/blog/2014/06/17/time-value-of-money/
http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=100%2C000.00&year1=1966&year2=2016
https://en.wikipedia.org/wiki/History_of_mobile_phones