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I've advocated that real estate investors should be looking to purchase
residential, commercial or industrial real estate that have cell sites on them.
True, this is definitely a niche market, but it is well worth the trouble.
Telecom leases are generally valued at 160 to 200+ times their monthly rent
and in many cases the concurrent sale of the cell lease can save the
investor 10 to 20% off the price of already depressed pricing and could be
the source of the down payment. The scenario is the 'perfect storm'.
The seller can't borrow against the cell site lease because banks do not
lend on contracts that can be canceled (terminated).
The seller will seldom sell off the cell site because he/she believes the cell
site is a big plus and makes the property worth more.
because the cell site leases can be terminated with as little as 30 days
notice. A buyer can't get a larger loan to pay more for the property because
banks won't lend on the potential for termination of the site lease.
A good real estate broker who knows even a little about cell sites can find
these jewels through published property listings. This can prove invaluable
for an investor who demands superior pricing and leverage.
Finding the right broker is part one of the puzzle. Part two is teaming up with
the right lease broker. One who knows the buyers and how to package the
cell site transaction so that it will be the most attractive and bring the very
Using a lease broker will allow multiple offers and we all know competition
breeds the largest offers. This is especially true today. Cell site values have
never been stronger. I had one buyout firm tell me, "The competition is so
great right now, we can't promise a broker a commission". As a RE broker
today, I'd be trying to find my niche. Maybe it is cellular related properties.
There are many advocacy firms out there that would be delighted to help
you explore this unique market. http://1st-CellTowerBroker.com would be
more than willing to share with you what we have learned and how it could
profit you. The average cell lease is $100,000 and normal commission is 6
to 10%. It is not at all unusual for a cell site to bring a million dollars or more.
Do one of these cellular/real estate deals for an investor and you will have a
life long 'friend'.
I was recently involved in a transaction in Las Vegas, Nevada where an
industrial client purchased a site for his own use. There were two towers on
the property. His real estate broker contacted me regarding the sale of
these towers. The client received over $800,000 for the leases, recovering
most of his purchase price. The RE broker is a hero to his buyer and didn't
do so bad himself (commissions).
Andrew Kellerman 1st-CellTowerBroker.com, Inc.
Article Source: http://EzineArticles.com/?expert=Andrew_G_Kellerman
Must reads - "Cell Tower Lease Purchase Values",
"Cell Tower Lease Cash Values",
"Cell Tower Buyers"
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