A Well Negotiated Cell Tower Lease is Worth a Small Fortune

Cell tower or rooftop leases are fairly short as far as length goes, so negotiating one of these leases is not rocket science nor is it brain surgery. I don’t think I’m being too harsh when I say, “A well negotiated cell tower lease is worth a small fortune”, and “A poorly negotiated lease is a travesty”. The difference of the cash value of these two potentials can be 300% or more.

I’ve had so many folks call me. They start out with, “Verizon (or whoever) just contacted me about putting a tower on my property or a rooftop on one of my buildings…”. Then they proceed to ask questions about what should they ask as a monthly rent, or, Is $500 a month enough? Or, Is $2,000 a month too much? Folks, there are so many aspects of a good lease, I could easily go on for hours.

Terms of a great lease are not only escalators, monthly rent and the term of the lease, they involve possible longevity, geography and intentions of the cell phone carrier. Every scenario can differ. If and when you get ready to sell your lease is an awful time to find out that your lease is considered sub-standard because you, could a, would a or should a.

The cost of a professional to help negotiate a new lease or re-negotiate (before the lease is up) is so small compared to the added value a financial advisor who lives and breaths these documents can add to your lease.

Andrew G Kellerman’s expertise is in the telecom industry, dealing with many Fortune 500 companies. Background in stocks, bonds, commodities,and options as VP for Thomson KcKinnon, with over 30+ years in all aspects of real estate and mortgages.

(760) 470-1782 Call for a quote. It maybe the smartest decision You’ll ever make!

Posted in cell site lease value, cell site leases, cell tower lease value, cell tower leases, cell tower sales | Tagged , , , | Leave a comment

Cell Tower Lease Income: A Built-in Termination Clause

This is not a ‘hit piece’ that is attempting to scare cell tower lease owners into dumping their leases. On the contrary, this class of lease is an asset that should provide an increasing income for years to come. In fact, fewer than 5% of all cell tower leases have ever been terminated. Most of these were caused by redundancy which occurs when carriers merge or consolidate.

The long term income from a well negotiated telecom lease is in great demand, not just by land owners, but by buyers willing to advance up to 15 years of the income from the lease, even if the lease is in its last years before expiration.

At some point we all get concerned about losing our cell tower leases through decommissioning of our cell towers or roof top sites. We are not losers if we decide to “take our chips and go home”. Sometimes we have a need not to gamble any more.

Here are a few of the things we should all think about:

  • Will the carrier/tenant on my lease still need my cell site in 15 years?
  • Will continuing industry consolidation cause my cell site to become redundant?
  • Will technology over the next 10 to 15 years make my cell site obsolete?

These are all fair questions. Remember that there is a reason that virtually every cell site lease has a built-in termination clause.

Andrew G. Kellerman, President of 1st-CellTowerBroker.com, Inc., is a financial advisor, specializing in telecom leases. His background includes V.P. Thomson McKinnon Securities, commodity futures, stock options, stocks and private placements, real estate and mortgages. Call for a quote before you negotiate or sell a cellular lease (760) 470-1782

Posted in cell site leases, cell tower buyers, cell tower leases, cell tower sales, Uncategorized | Tagged , | Leave a comment

Cell Tower Leases: Negotiations, Re-Negotiations and Consulting

1st-CelltowerBroker.com, Inc. offers a service quite like no other. A unique no-money guarantee (no money up front). “If you are not satisfied with what we negotiated, don’t pay us”, Andrew Kellerman, CEO. This applies even if you choose to accept the lease.

We feel that this is a showing of what our abilities are and how we are willing to back them up.

  • Won’t the cell phone carrier just walk if your negotiations don’t meet our expectations?
  • What happens if we choose to change consultants in the middle of negotiations?
  • Have you ever had anyone not pay you for a lease negotiation?
  • How long have you been doing this?

Will the Carrier Walk?

If you have an offer from a cell phone carrier to put a cell tower or rooftop on your roof, they are very reluctant to walk away from any negotiations. They have spent anywhere from $5,000 to $10,000 on engineering already, so they will hang in there.

For the most part, each cell phone company will have contracted with an outside consultant (salesperson) to hammer you for the best price possible. They will hammer you because they get paid on the outcome of the resulting lease.

Changing Consultants is as Easy as Changing Your Socks

Not happy with the way negotiations are going? You can call anyone else you wish. You can get a partial list from our list of cell phone lease consultants.

Anyone Choose NOT to Pay 1st-CellTowerBroker.com?

We must be doing something right. We have never had anyone choose to not pay us for negotiating a lease or re-negotiating a lease. Our clients are happy clients.

1st-CellTowerBroker.com’s Experience

Andrew Kellerman, CEO and President of 1st-CelltowerBroker.com Inc. has been in the business dealing with cell tower leases for about seven years. He was trained by one of the top lease agragators in the nation, APWIP. The corporation structure was brought about for the need for tax advantages.

Andrew Kellerman was brought up in the financial world, with 10 years in stocks, bonds, commodities, stock options and over forty years in real estate and mortgages. His team is among the best in the nation. You’ve got nothing to lose and everything to gain.

Give him a call and talk over your situation 760-470-1782.

Posted in cell site leases, Cell tower lease negotiations, cell tower leases | Tagged , , , | Leave a comment

Sprint, Nextel, Now T-Mobile: Cell Tower Lease Redundancy Equals Termination

What Good For the Consumer May Not Be Good For The Lease Owner

Redundancies are the nemesis of a cell tower lease owner. The one big fear that can wipe out the once counted on cash flow is redundancy. Having the income was like cashing in monthly on the lottery. It is a pretty sure bet that every lease owner has received multiple inquiries and offers from the dozen or so reputable cell tower/rooftop lease buyers.

Why do Cell Phone Carriers Terminate Leases?

There’s an enormous expense that can be saved by eliminating redundant leases. Cell phone carriers may have multiple cell phone carriers on their towers or rooftop easements (if a general easement). Each carrier has an obligation to pay someone, normally this would be the master lease holder or in some cases the property owner, if he/she also owns the steel or leases to each carrier individually by specific easement. By terminating leases that duplicate coverage for a carrier, lease payments can and will eliminated. “A dollar saved is a dollar earned” (anon).

“What is My Lease Worth Now?”

There will be a lot of decisions made that will affect a lot of lease owners. Redundant leases are subject to termination. The value of a cell tower lease, if the tenant has two leases at the same location or even in close proximity may be in jeopardy of being terminated. The only company that knows ‘if’ or ‘when’ this will happen is not going to share that information until they are ready. The only way to find out what your cell lease is worth is to find out what someone will pay for it. To insure that price is the best price, an auction (RFP) should take place.

Andrew G. Kellerman, President of 1st-CellTowerBroker.com, Inc. has a financial background in: Stocks, Bonds, Commodities, Options, Real Estate, Mortgages, Cell Lease Consulting and Cell Lease Sales.

760 470-1782 or email

Posted in cell site lease bids, cell site lease value, cell site leases, cell tower buyers, cell tower lease termination, cell tower leases, cell tower multiples, cell tower sales, Uncategorized | Tagged , , , , | Leave a comment

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

 

Posted in cell tower buyers, cell tower lease buyouts, Cell tower lease negotiations, cell tower lease ROFR, cell tower lease value, cell tower leases | Tagged , , | Leave a comment

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

 

Posted in cell site lease bids, cell site lease value, cell site leases, cell tower buyers, cell tower buyouts, Cell tower escalation clause, Cell tower lease negotiations, Uncategorized | Tagged , , | Leave a comment

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

Posted in cell site lease joint venture, cell site lease value, cell site leases, Uncategorized | Tagged , , | Leave a comment

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

Posted in cell site lease value, cell site leases, cell tower buyers, cell tower buyouts, Cell tower lease negotiations, cell tower lease value, cell tower myths | Tagged , , , | Leave a comment

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

 

Posted in cell site lease value, cell tower buyers, cell tower lease buyouts, Cell tower lease negotiations, cell tower lease value | Tagged , , , | Leave a comment

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

 

 

 

 

Posted in cell site lease value, cell site leases, cell tower buyers, cell tower buyouts, Cell tower escalation clause, Uncategorized | Tagged , , | Leave a comment