Cell Phone Tower Lease Initial Payment ?

by V
(Not Specified)

I have been approached by a major cell phone company to possibly put a tower on my land. I know about the monthly payments, but how much should ask for/get for the initial down payment ? They are saying $7,500 but that sounds really low.
Thank you!

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Apr 01, 2011
Sounds like you need help...
by: Tower Genius

I would not jump to assumptions. You mentioned that "You know about the monthly payments" -- well that may be correct, but do you know about the rest of the telecom legalese they put in front of you?

Based on your question, it sounds like the site acquisition representative is dangling the carrot in front of you trying to get you to take a $7500 payment and that sounds like a large amount of money, but that generally means that they are giving it in exchange for horrible terms.

There is no such thing as a "down payment" for a cell tower. Sometimes a carrier will agree to include a one-time payment of perhaps $1-3K to help you cover your legal expenses, but only in cases where they really need your site and you have leverage to negotiate. There are Option Payments that carriers pay for the option to lease your property. Fair market value for these are anywhere from $500 to $1500 per year, and they usually range from 1 to 2 years.

The tower leasing reps offering a large upfront cash down payment are usually the kind of tower developers who give our industry a bad reputation. I would be very cautious.

Since you have not provided any other detail is it difficult to properly answer your question. Give us a call as soon as possible or fill out a Contact Form on this site.

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