Understanding Cell Tower Lease Buyout

When you have a cell tower on your piece of land, you can benefit from the initiative in two ways. One, the cell phone company can give you a continuous monthly income for the entire period of the lease, or you can opt for a cell tower lease buyout. When you go for the second option, you receive a lump sum of cash from a company that buys the lease from you. With that kind of arrangement, you cease to own the rights of the location and therefore do not receive the monthly payment from the cell phone company.

As a landowner, you need to know more about these terms used in cell-tower location arrangements, as this can help you select an option that can best suit your requirements. So, what exactly is a cell tower lease buyout? To begin with, in this special type of arrangement, you agree with a company to purchase the remainder of your lease period. The arrangement takes effect after the company pays you a lump sum amount of money after calculating your dues based on the length of the lease and the amount you receive at the end of each month.

In addition, upon finalization of the process, you as the location owner have nothing to do with the site as long as the lease is still in force. The cell tower, however, remains on your land to the expiry of the lease.

Advantage of a cell tower lease buyout

Lump sum payment: this is the main advantage of the arrangement. For many cell tower location owners, it is easier to use a lump sum amount of money in bigger investments than to use the small amount of money that comes at the end of every month. While some landowners prefer the monthly payout system, many of them also confess that lump sum payout is a better arrangement. For example, if you identify an investment opportunity that requires a bigger cash injection, the buyout system can be the best alternative. In addition, the buyout plan can help you eliminate debts, pay college fees, or finance an important project.

What do cell tower lease companies do?

When you decide to go for the lease buyout plan, you engage a company that acquires the site and the lease. It then converts your monthly or yearly payout into a lump sum amount of money that you receive as the location owner. Companies involved in lease buyout agreements know how to work around new cell tower leases and to factor in opportunities that may increase cell tower lease rates. In some cases, the site owner can arrange with the buyout company to purchase the parcel of land in which the tower is located. With a reliable company, you can enjoy a flexible term length, prompt lump sum payout, even cell tower lease extensions. Besides, you can arrange for a lump sum or quarterly payout with the company, including revenue sharing with tenants that may come in.

In a cell tower lease buyout, you cannot dismiss the support of a reliable company to help you achieve the results you want. For more information about the experts, visit http://www.celltowerleaseexperts.com/f2/services-we-offer/cell-site-lease-buyouts-2/cell-tower-lease-buyouts/