(Courtesy of Nexus Towers) Have you ever seen cell towers on private property and wondered how they got there? The answer is that cellular providers search for good locations to provide coverage to a given area and offer cell tower leases to property owners. With the growing need to provide nationwide coverage, an increasing number of providers need towers in urban, suburban and rural neighborhoods across the country.
According to Meir Waldman of Nexus Towers, traditional real estate investors are looking for the kind of tenants that can bring them more revenue. Oddly, many people ignore the potential revenue opportunity available on their rooftops. Verizon, AT&T, T-Mobile, and others are some of the biggest providers of cell towers, and if your home rests in the right spot, it could put you in a good position to acquire a cell tower lease.
The first rooftop cell tower lease agreements came about in the mid-’90s, but they have evolved with the evolution of cellular technology. Waldman noted that we have no idea what cell towers and their leases will look like in another 20 years. Consequently, it is important that tenants do not sign deals without talking to a consultant first. Nexus Towers offers free lease consulting so that tenants can retain the value of their investment.
So, while hosting a cell tower is a good investment, it is still a fragile agreement that will likely not last forever. This makes lease buyouts a good idea if you want to sell your property and cash out now. But this doesn’t mean that you should just sell everything all at once; you could get the best deal by separating your cell tower lease(s) from your property and other assets.
For example, let’s say that you have fine art or antique furniture in your home. You could sell your home and the furniture all in one sale and increase the total price by a small sum, or you could sell the individual pieces of furniture separately and make a lot more. The same concept applies to real estate and cell towers. If you want to sell your home, you should sell your house and your lease separately, increasing the total dollar amount you get from the sale. You should never give away your cell tower lease at a discounted price.
After years of working with cell tower leases, Meir Waldman knows that many property owners are accustomed to putting up their guard when talking about lease agreements. They do this because most people who want to talk about leases are buyers. Many owners feel unsure if these offers reflect the real market value of their lease—and rightfully so. On average, unsolicited offers only equate to roughly 70 percent of the market value.
If you choose to work with Nexus Towers, Nexus manages a bidding process among all reputable investors. Then, owners are presented with multiple options. These deals are tailor-fit based on the owner’s individual needs. That’s why Nexus Towers has a 100 percent success rate at closing deals.
In addition, there is also a misconception that if you sell the lease on your rooftop, you actually sell your rooftop. Thankfully, this is not the case. You (the owner) still have the right to use the rooftop as you see fit excluding Telecom. For telecom purposes you may be able to add new tenants and retain 100 percent of the revenue or you may share in the revenue of new tenants depending on how the sale of your existing telecom leases was structured. Nexus Towers vets investors to ensure that they make good partners and form good joint ventures with property owners. In short, we are in the business of bringing parties together to make good deals.
As we have seen over the past few decades, technology is always evolving. There is a huge opportunity for owners to cash out now on 5G towers. These opportunities may not be around 10, 5, or even 2 years from now. The value of your portfolio will decline if you allow carriers to bully you into reduced rate leases over time. So, we recommend selling while buyers are offering excellent buyout sums. With the help of Nexus Towers, you can turn your valuable lease into cash today.