Cell tower lease buyers have the big advantage over sellers and it isn't even
close. I've watched for years, sellers either get a call from cell lease buyers or
even worse call the buyers themselves thinking they are going to play one
against the other and get the highest price possible. As I said, it's not even
Before you 'go it alone' you may want to spend a couple months learning how
secure your tower is with regards to being or becoming redundant: learn the
mathematics cell tower lease yields and what the buyers consider the carriers'
risk of being bought, merged or going out of business altogether.; spend hours
and hours doing the yield math the buyers require when they look at a lease;
know which buyers are more likely to bid highest. Now you'd be ready to begin.
Problem is talking to cell tower buyers without at least an informal bid process is
inviting yourself to a gunfight armed with only a knife.
When buyers talk to a seller they can smell the 'low lying fruit'. Let me give you
an example. Let's say you are talking to three or four potential cell tower lease
buyers and buyer #1 offers you $140,000 and tells you that a monthly multiple
of 140 is really very high. Buyer #2 over bids buyer #1 by bidding $145,000 (a
monthly multiple of 145 and talks you into the deal telling you that buyer #1 is
right when he told you that the 140 monthly multiple is really high, but he'd give
you $145,000 if you sign now. Buyer #3 has not even bid yet and the deal is
over. The fact may have been that the multiple buyer #3 would have paid
$160,000 or higher (a 160 multiple).
Monthly multiples are not accurate measurements of value. The time frame to
the next escalation of your lease rent is a big determination of value when
buyers calculate their internal rates of return. Example: a cell tower lease with a
five year escalator with 1 month till the next escalation of 15% could be worth a
180 multiple while the same lease with 59 months till the next escalation may
only be worth less than a 130 month multiplier.
By allowing us to put together an open auction for you, we will alert the cell
tower lease buyers to the fact that they have someone on their side to even out
the playing field.
There are two ways we can do this. 1. We can sign you up for NO FEES (paid
by highest bidder) or 2. we can work directly for you (negotiated fee paid by
seller). The later better serves cell tower lease sellers as our loyalty is to them
and we will attract buyers they may not even know about. Often times these
unknown cell tower buyers are the historically highest bidders.
Call us for more information to talk about getting your auction on.
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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