Cell Tower Lease Purchase

A cell tower lease purchase is when an entity, usually a company, pays an individual landowner a multiple of the yearly rental income produced by a cellular tower for the right to future rental income. The purchase price is paid at the start of a business’s operation, and all rental payments made after that add to the payment of the purchase price. This arrangement allows companies to own a piece of property and use it for their own business needs without paying for a long-term lease on the property. In this economy, these purchases make great sense.

Buying Out Cell Tower Lease Agreement

There are two common methods of buying out a cell tower lease agreement. One is a lump sum payment. The other method is through an installation process that goes much like a mortgage. Either way, the companies involved must sign a legally binding contract. One important thing to note is that even if the buyout amount is a significant amount of money, the buyout may not be issued until a year after the termination of the agreement.

Why is it a Popular System?

When companies need to get rid of the property, they often do so by purchasing a large quantity of long-term cell tower lease buys from landlords. Cell Tower Lease Buyouts (also known as CTO) allows landlords to sell their vacant properties to the buying company, at a discount, in order to generate immediate cash. Typically, landlords are able to sell their units for more than half of what they owe the current tenant. Some of these large CTO deals can produce a multiple-million dollar profit for the purchasing company. However, there are some restrictions placed on these deals by federal and state law.

Investment and Cell Tower Broker Services

To find out what the best deals for long-term leases are in your area, contact an investment firm that specializes in real estate. These firms will have the ability to search the marketplace to locate the absolute best cell tower lease buyouts offers and make recommendations to you regarding the best options. Some investors prefer to use a real estate attorney to help them with these types of transactions. Others choose to do the research themselves, but many investors find that hiring a real estate attorney allows them to understand more about the purchase process and will provide them with greater peace of mind.