Cell Tower Lease Consultant: More Income and Higher Value

You Need Knowledge on Your side.

1st-CellTowerBroker.com, Inc.’s negotiating expertise can make your cell tower lease more valuable and produce more income. There are just so many lease advantages that the cell tower owners are not aware of. New twist are being added all the time. If these potentials are not contemplated when negotiating a lease or a sale of a lease, there will be a lot of money left on the table. That’s just a fact.

Negotiating a Cell Tower Lease

Whether you are negotiating a new tower lease or renegotiating a renewal of an expiring lease, the cell phone carriers are using very experienced negotiators. It is not a fair fight. They will come out the winner. There’s no need to ‘roll over’ and let them end up with all the financial advantages. We can help you to see where the weaknesses are and help shore those up. You’ll end up with more income and a lease that will be valued higher (leae buyouts), should you decide to sell your lease someday.

More Value When You Sell Your Cell Tower Lease

A better lease has better value. We know how to help you to receive those benefits resulting in a lease that has more value when you get ready to sell the lease. There are economic benefits that can go beyond the initial sale. Many buyers may promise you some or all of these, but only a few can/will deliver.

A Financial Analysis will be Provided: ‘What if’ Scenarios

When negotiating a cell tower lease or the sale of a cell tower lease you will be up against experts. You need knowledge on your side. Whether you need a consultant or a cell tower broker, we stand ready to help.

Call for a quote 760 470-1782

Andrew G Kellerman, CEO of 1st-CelltowerBroer.com, Inc. financial background includes: Stocks; Bonds (Treasury and Corporate); Commodities; Options; Insurance; Real Estate: Mortgages; Cellular Lease Consulting and Lease Sales

 

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Church Cell Site Leases: Always Undervalued and Under Priced

Churches are Low Hanging Fruit

Churches and other non-profit organizations like the Elks Club (BPOE) Kiwanis and the Lions Club, are what are considered ‘low hanging fruit’ when it comes to cell site towers and rooftop buyouts by the telecom lease aggregators. Their cell phone assets are normally undervalued and under priced.

Being a not-for-profit religious or social organization somehow makes them easier prey for both a cell phone carrier negotiating a lease and lease buyers. It may be the the very nature of being a non-profit organization that gives companies the idea that since they don’t seem to be trying to make a profit they would or should sell their assets for less.

Cell Site Lease Escalators

I’ve seen monthly lease offers from cell phone carriers to place a tower or a rooftop antenna on these properties that were half of what the same carrier is paying a few miles away. Absent from these offers were co-location rent sharing and many times even a market escalation figure.

A lease consultant is almost always needed, but rarely used. The benefits should be obvious for a cell site lease consultant being in on the negotiations. Beside having knowledge of the recent financial trends in the telecom industry, a consultant can spot opportunities in thee negotiations that would otherwise be overlooked because of the lack of experience in dealing with telecom leases.

Do yourself a favor and get a quote prior to negotiating any cell site lease. You will be money ahead. 760 470-1782

Andrew G Kellerman’s financial experience is: VP, Thomson McKinnon; Corp and US Bonds; Stocks; Commodities; Options; Insurance; Real Estate; Mortgages; Cell Phone site Lease Consulting and Sales

 

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Cell Site Lease: Sell Half, Keep Half

Sell Your Cell Tower Lease?

I’ve run into lots of cell site lease owners who can’t make up their minds on whether they should sell their lease or keep their lease. I can understand the quandary. It’s not always a black or white type decision. Often times the indecision may seem a little gray.

Cell Site Lease Joint Venture

There is a solution. Sell half interest in your cell site lease. As a lease consultant I’ve seen this as the perfect solution for some. It’s a ‘have your cake and eat it too’ type of a solution. There are many benefits to this type arrangement, even over selling your lease outright.

Your Cell Site Lease Partner: Management Team

When you ‘partner’ your site lease with the right telecom lease buyer you get all the benefits of the professional management that buyer brings. The re-negotiation of the lease, when it nears expiration, is going to be the best because the buyer owns half the lease. Any possibility of adding to the financial circumstances surrounding that lease will be watched closely.

The Right Cell Site Lease Buyer Will Have Your Interest at Heart

There are telecom (cellular) buyers that would make very good partners because they bank (keep) their leases and don’t package and sell them to Wall Street or private investors who have no desire to do anything other than clip coupons.

Before you try and negotiate a joint venture or any other telecom transaction get a quote. You will be money ahead. 760 470-1782

Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon, Stocks; US and Corp Bonds; Insurance; Commodities; Options; Real Estate; Mortgages; Cell Site Lease Consultation and Sales

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Cell Site Lease Consultant: Negotiate a Better Deal

Cell Site Lease Consultant

Nobody wants to pay for something they can do themselves. That’s understandable. Everyone wants the best deal they can get when originating a cell site lease or negotiating the sale of a cell site lease. Which way do you wish to go. Do it yourself? Or best deal possible?

The telecom industry has its idiosyncrasies when it comes to terminology and the needs of cell phone carriers and cell site lease buyers. Not everything is negotiable and not all that is negotiable will be revealed.

Originating a Cell Site Lease

Cell phone carriers have the upper hand when they knock on your door and offer you an income stream for the right to place a tower or rooftop cell site on your property. There is room to push a little, but it has to be within reason. By knowing their limits and what incentives are available is tantamount to putting together a great lease. One that has the highest buyout potential.

Cell Tower Lease Myths

When renegotiating a cell site lease when the present carrier lease nears expiration is the time when the carrier is in a slight weakened position when it comes to renewal terms. They have a great investment in the infrastructure and face the potential of having to deconstruct the equipment, which is very costly. They also face the potential of losing any sub-leases they have. This is the time that a terrific lease can be put together, one that has the highest buyout value.

Cell Tower Lease Buyers are Experts. Are You?

Dealing with the cell site lease buyers is another story. You’ll be dealing with salespeople who are paid to buy your lease at the lowest price possible. They are very good at what they do. They are experts. You need an expert on your side. You need a consultant who knows the companies, what their limits are and what they are capable of delivering versus their promises.

Get a quote before you negotiate 760 470-1782

Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon; US and Corp bonds; Stocks; Stock Options; Insurance; Commodities; Real Estate; Mortgages; Telecom Lease Consultant and Sales

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Cell Site Leases: Get the Most Out of a Buyout

Cell Site Lease Consultants

As a cell site lease consultant, I’ve had the opportunity to review lots of offers from cell tower buyers. Most lease owners go into a lease negotiation with only one thing in mind, that is the purchase price. They may calculate their price using a monthly multiple or they want what they heard that another cell site lease owner got. By the way, neither of these methods are going to get you the highest price. There are a dozen or more aspects of a lease that will determine what a cell site lease buyer will pay. We’ll address these at another time.

Cell Site Lease Negotiations

What astonishes me is, how much is left on the table even if an equitable price is reached on purchase price. In many lease transactions there are opportunities for additional income that could potentially be as much as the lease’s sale brought. I’m talking about the re-negotiation of the original lease with the cell phone carrier and sharing the sub-lease rents that the carrier may have.

Often times the greatest selling point to a lease is not its income or even its escalations, but when the lease expires. You’ll never hear this from a buyer because they want you to believe that as a seller you are in a weakened position because you are about to lose the lease because it is just about expired. In most cases, nothing could be farther from the truth.

Let’s use hypothetical Verizon lease that has 5 years left on it and presently is paying $1,000/month. You will hear from a cell site lease buyer, “we are taking a chance that Verizon will continue that lease beyond the five years”. What he is saying to him or herself is, “Wow, if I can pull this off I’m going to get a big commission and maybe a bonus to boot.

Here are the statistical facts: that lease will be re-negotiated; the lease will be re-negotiated for more money; the carrier is in their most vulnerable that they have been in. The carrier has probably spent North of a quarter million dollars and may have sub-leased their site to additional carriers. They need a new lease.

To take advantage of this a lease, seller should negotiate with a buyer, after agreeing on a price, a percentage of any new lease that is more than the old rent figure plus the normal escalation. A Verizon lease should normally be somewhere between $1,300 and $1,800/month. Let’s say you are successful in negotiating 50% (or more) of this increase and the buyer of your lease is able to get $1,500 or a $500 increase, which you are then due 50% or $250/month. You can either keep the income or turn around and sell that income for 150 (or so) times that figure or $37,500.

In these negotiations you should also ask for a portion of any sub-leases the buyer is able to get from the carrier upon the new lease’s terms. Remember, the lease that is presently governing the cell site is the rule and only a lease expiration or a re-negotiation can change that. Like the percentage that I spoke of with regards to the increase in rent per month, any participation in the sub-leases the carrier has can also be achieved by the buyer and shared with you. Again, the percentage of sub-lease rent can be kept or sold.

The CAVEAT

Not all cell site lease buyers are equipped  with the desire, talent or determination to negotiate beyond an extension of the present lease. They just don’t want to rock the boat. The problem comes when they promise you that if they are able to renegotiate at a higher rent figure or add carriers to the site they will pay you 75% (or anything) you ask because if it happens it would be an accident because they are not going to go and try and improve the lease’s economics. They are going to package a bunch of leases and sell them to Wall Street.

There are cell site lease buyers that have no interest in raising the rent due to an affiliation or contractual obligation prohibiting them from rent increases. All in all, the advice is that you need to determine if your cell site lease has the potentials we’ve covered, if so there are buyers that will either pay more for the lease or buyers who can actually deliver on these promises.

Andrew G Kellerman’s financial experience includes: VP, Thomson McKinnon; Stocks; US and Corp Bonds; Insurance; Commodities; Options; Real Estate; Mortgages; Telecom Lease Consulting and Sales

Call for a quote before you make a commitment 760 470-1782

 

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Cell Site Lease: How Important is the Escalation Clause?

Want to Sell Your Cell Site Lease

There are two most important aspects of a cell site lease when it comes to its buyout value. These are the initial lease payment and the escalation of the lease payment. The least understood of the two is this escalation or percentage that the lease payment will increase each period. This is referred to as the escalation clause in a cell site lease.

I’ve seen some lease payments that were awe inspiring, but had inferior escalations. These escalations do make a significant difference over the long run. I’ll show examples of three different configurations and then give you my opinion of what the buyout values could be, based on the initial rent and the escalations.

I ask that you to look only at these figures proportionately and not so much on the actual inferred purchase values, as there are many more items in a cell site lease that jointly can affect aits value. (examples are for illustration purposes only – please do your own math)

Example #1 – $1,000 initial monthly rent; 3% yearly escalator -buyout year 1 $160,000; year 5 $180,000 ; year 10 $208,750

Example #2 – $1,100 initial monthly rent; 10% term (5 year) escalator – buyout year 1 $161,000; buyout year 5 $177,400; buyout year 10 $194,500

Example #3 $800 initial monthly rent; 5% yearly escalator; buyout year 1 $164,000; buyout year 5 $210,000; buyout year 10 $255,000

Albert Einstein called compound interest the greatest mathematical invention of all time. Escalations equal compound interest. Remember this when negotiating your lease.

Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon; Stocks; US and corp bonds; Commodities; Insurance; Options, Real estate; Mortgages; Telecom lease consulting and sales

Get a quote before you negotiate 760 470-1782

 

 

 

 

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How to Value a Celltower Lease

Find Out the Value of Your Cell Tower/Rooftop Lease

When telecom lease buyers looks to purchase a lease, they will calculate what the the future value of that lease is in today’s dollars.

First there’s the future discount. This is much like a loan and will be discounted by the interest that would normally be be paid for that loan. Pay a 3% interest rate, nets you $0.97. Two years, the net would be $0.94 and so on.

Secondly, there needs to be a monetary reward for taking the risk of purchasing a lease that has a clause that states that it can be terminated with as little as 30 days notice (this is why banks will not lend on a telecom lease).

And third, the buyer of the lease needs to make a profit.

Cell Tower Lease Myths

I’ve sen so many calculate their lease payments for the next 20 years and believe that is what their lease is worth. These folks seldom sell their loans because they can’t comprehend that dollars tomorrow do not equal dollars today.

There are three main ingredients in evaluating a lease’s buyout value and another for the potential for additional vale being added at a later date. Telecom lease buyers are going to be looking at:

  • Present rent (frequency of payments)
  • Escalation % (frequency of change)
  • Co-location rents

The current lease rent will be the starting number where they will begin their calculations, so obviously this is most important number.

How much and how often will the lease payments escalate enter into the calculations of the future value of the income stream. A larger increase will be subject to a discount, but because the number is larger the discount is less significant.

Co-location Rents of Co-los

A cell tower/rooftop lease that has co-location rents (sub-lease rent sharing) has a tremendous importance in valuing the lease’s buyout value. Not just because there’s more income, but because there are additional carriers on the property, giving the lease more security because the risk of termination is less the more carriers that are located on the property. The loss of one carrier doesn’t necessarily means the total loss of income.

The one aspect that is often overlooked is the end of the present lease. This is often very important because when the lease is over, there is a most probably a chance to negotiate a better lease. Here is where I add the caveat. A lot of buyers will just ask for an extension of the present lease, including rent and escalations.

There are lease buyers that hunt for leases with short fuses because they will go in with guns a blazing and maximize every aspect of the lease. The odd thing is, when a lease is about up, lease holders believe their lease has less value.

Andrew G Kellerman’s finacial background includes: VP, Thomson McKinnon; Stocks, US and corporate bonds; Options; commodities; insurance; Real estate; Mortgages; Telecom lease consulting and sales

Call for a quote before you finalize any cell site lease negotiation or sale 760 470-1782

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Cell Tower Lease Consultants Are Worth Every Penney

Cell Telecom Lease Consultant

Hiring a cell tower lease consultant just makes cents. The fee usually turns out to be 10 to 25% of the money that is saved or made through their knowledge and negotiating skills. Having an intermediary is huge when negotiating a cell tower lease.

When you are face to face in a negotiation you will be at a great disadvantage. When an offer is made to a landowner, he/she is being forced to say yes or no, whereas a consultant can say, “I’m going to have to check with my client.” and then follow up with, “My client wants to know if maybe this will work.” An intermediary can keep the door open where a principal may not be able to continue negotiating through those ‘take it or leave it‘ moments.

The more obvious reasons for hiring a lease consultant is that they are familiar with the current financial trends when it comes to negotiating or selling a cell tower lease. In order to get the most out of your lease, price, terms and down the road additional incentives, it is important to know not only what, but who you are dealing with.

Cell Tower/Rooftop Lease Buyers

As cell tower lease buyers adjust their prerogatives in relation to the financial markets, there are times that can be taken advantage of. The industry is made up of a three types of buyers: those who sell to Wall Street; those who sell to their own set of investors; those who keep for their own portfolios.

Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon; stocks; commpdities; options US and corporate bonds; Insurance; real estate, mortgages; telecom lease consulting and sales

Call for a quote before you finalize any lease negotiation or sale 760 470-1782

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Cell Tower Lease Consultant: Why You Need one

Lease Consultants

Whether you are negotiating a new lease with  cell phone carrier who wishes to put a cell site on your property or are interested in selling your cell site lease, you need a consultant. Not just because he/she may have experience working with the telecom industry, but the simple fact that a consultant can say “maybe” and as an owner you can’t.

An intermediary can keep discussions going by virtue of the fact that the final word is not in their hands. “Let me see if the owner will be open to that” or “The owner may go along with that if you will bend a little here”. By keeping the negotiations alive, a better lease can almost always be achieved for the landowner.

When face to face, cell phone carrier v land owner, discussions take on a very different tone. They become a game of hope and bluff. Any wrong move could cost you a lease or could cost you the better deal. Carriers have priorities and if these aren’t met, they will walk away.

Before you try and negotiate any cell site lease transaction get a quote. You will be money ahead. 760 470-1782

Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon, Stocks; US and Corp Bonds; Insurance; Commodities; Options; Real Estate; Mortgages; Cell Site Lease Consultation and Sales

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Why Down is Faster: Cell Site Lease Values

Buyout Value of Your Cell Site Lease

The buyout value of cell site leases has risen consistently for the last 10 years. In the last year and a half, they have made a leap. If you are a student of economic trends you might feel that the proverbial bubble may be near.

It is not just cell tower leases, but the economy as a whole that needs to be heeded. There are many who say that the Federal Reserve has pumped a lot of money into our economy and that money has been used to chase the stock market higher and higher.

I can’t help but believe that as the Fed start winding down their stimulus, stock prices may change direction. They have tightened a little, lowering their bond purchases from $80B a month to $65B a month, hinting that inflation may be a concern.

History tells us that to fight inflation, interest rates have to rise. The 1970s, if you are old enough to remember, was such a time. Mortgage rates were as high as 18%. Real state was dead. Fixed rate investments plummeted as Treasury rates went up and closed in on 8%.

Imagine having a fixed rate investment during these times. Their value crashed. You could get 8% on a US bond with no risk, why would anybody want a fixed rate investment with some degree of inherent risk?

Joint Venture Your Lease: Reduce Your Exposure

I’m not saying everyone should bail out of your cell tower leases. I am saying that having a game plan may allow you to get out first if the worst actually happens.

Andrew G Kellerman’s financial history includes: VP for Thomson McKinnon Securities: stocks; US and corp bonds; commodities; options; real estate; mortgages; cell tower and rooftop consulting and sales

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