Cell Tower Lease Buyout?

by Daniel
(Apex, North Carolina)

I have a cell tower on my property here in North Carolina. We have four carriers on the tower and we receive the initial lease payment plus 30% of all colocation revenue at the site. The total value of my lease, as it stands now, is worth just over $2.1 Million dollars over a 30 year period.

A company called me recently offering me a one time lump sum buyout of the lease. The company offered me $320,000.00 to sell my cell tower lease to them. I could use the cash to pay off some debt I have as well as it would pay off what I owe on the property.

Is this a good deal? Should I jump at it since the carriers may take the tower down ahead of the full lease period? Thanks for any direction you can provide.

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Mar 02, 2016
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Cell Tower Lease Buyout/Apex NC
by: Ralph B. Charlotte NC, USA

Hi Dan,
A Lease gives you the right to a stream of payments over the agreed upon number of years. Thus, a Lease is an asset... The beauty about the stream of payments is that "You do not need to sell it in its entirety, they can be sold Partially as well."
That is to mean, If you are 50 years old and have signed a 30-year Lease... You can Partially sell 15-years worth of payments to those seeking to buy it - you use the cash raised to pay off debt, pay off or down your home, etc... By the time the partial buyout is up, you are 65 years old. At this point, you resume with your payments streams for your retirement... That was just one way you can structure these things at your benefit.

Dec 29, 2014
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Should I sell my T-Mobile lease?
by: Jackson

I'm thinking about selling my tower lease with t-Mobile because I've received a few cash purchase offers. I'm concerned about further consolidation. Any thoughts?

May 07, 2012
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Re: Your cell tower buyout tax questions...
by: Nicole

"So my mom has a cell tower on her property and was approached for a buy out. She wants to move back to CA with the money and sell her home she currently lives in. So my question is does the money from the buyout effect her Medicare income in any way and if she reinvests $$$ in a new home does she get hit with capital gains? We have lots of questions regarding the buyout."

I can answer ALL your questions for you. Please give me a call at 858-###-#### or email me at name@####.com

Editor's note...

Sorry Nicole... can't post an ad here.

Apr 27, 2012
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Cell Tower buyout tax questions
by: Anonymous

So my mom has a cell tower on her property and was approached for a buy out. She wants to move back to CA with the money and sell her home she currently lives in. So my question is does the money from the buyout effect her Medicare income in any way and if she reinvests $$$ in a new home does she get hit with capital gains? We have lots of questions regarding the buyout.

Oct 17, 2010
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Cell tower lease buyout avoid prepaid rent
by: Pete

Watch out with your cell tower lease buyout because if you get it as prepaid rent you will get crushed on the taxes. Get advice before you do anything.

Apr 27, 2010
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RE: Cell Tower Lease Buyout?
by: Tower Guy

You are better off dealing with a reputable lease acquisition firm backed by serious wireless capital. Deep pockets are a good thing.

Have a professional review any lease buyout offers you receive, as long as you're OK with passing up future payments for some cash now, then go green $$.

Jul 04, 2009
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About Your Cell Tower Lease Buyout Offer
by: Stu

Dan, HELLO!! If they were taking down the site why would they offer you anything?! They want the site.
Many of these lease buyout firms try to convince unsuspecting land owners that they may not be a need for their cell tower in the future which is a complete lie.

Regarding the terms of your lease, how long have each of the carriers been on the tower and how many years do you have left on your leases? Also how did you end up only getting to keep 30% of the carrier co-location revenue?

Sell the lease if you need the money now. Hold onto it if you want to enjoy the long term income.

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