Important Items To Look For In Cell Tower Lease Agreement

Unlike residential or cell tower lease agreements are usually presented by tenants and not the landowners. In these cases, it is important to have professional consultation hired by landlords since the agreement would be drafted by the tenant. Cell tower lease experts ensure that best interests of property owners are taken care of.

Here goes the list of important items you should look out for:

1.     Lease Limited Part Of Your Property

Cell tower companies asking for 10,000 square feet area for lease actually do not need this much of land. It is shocking when they are seen asking for hundred times more land from property owners. You will straightaway give away rights and much more to that land for a long period.

2.     Hire An Expert

Oftentimes the cellular company representatives are accompanied by legal experts too. Sitting on the table without an expert can cost you heavy. Being a layman, you might not be understanding the minute things about lease agreement. Moreover, negotiating a fair price would be easily possible with help of cell tower lease expert and ensure you don’t leave money on the table.

3.     Rent Escalations

Most of the landlords do not understand that over the time value of money decreases. Logically rent you are likely to decide might not match the market rates for 10 years later. There should be provision to revise or escalate the rent after few years of lease. This item can only be discussed with the help of a professional advocate.

4.     Don’t be too generous

While granting options to the tenants’ landlords need to be extra cautious. Whatever clauses they present to you are changeable subject to your convenience. Unless you are 100% sure about something don’t give thumbs up. Make sure your property is not just an option for the cell tower company.

5.      Keep the lease term as short as possible

Instead of looking at the longer lease period as a source of ancillary income you should mind the depreciation in value of money with due course of time. For getting paid better you should limit the lease period to the minimum. This opens new negotiation opportunities for you in during the renewal of cell site lease.

Cell tower lease expert working for you can make you thorough with such and more aspects of a cell lease agreement. It ultimately leads to taking an informed and profitable decision.

Lesser Known Ways To Get Better Cell Phone Connection

Are incomplete cell phone conversations taking a toll on your budding relationship? Are you tired of explaining the network problem to your clients? When signal is not proper in your cell phone, it becomes difficult to make use of all features of cell phone. The level of irritation and frustration when you are unable to share pictures and download images can be imagined. Many people sit back and continue suffering by saying they hardly have any control over cell phone tower installation. If you also think so then it is time to reconsider. There are ways with which you can carry out all functions you want to.
Considering the following tips you can come over the day-to-day cell phone tower network issues.
Put your Wi-Fi Into More Use
For making calls when network signal is not proper you can make better use of your Wi-Fi. Calls via the internet can be made with the support of Unlicensed Mobile Access or UMA. It is possible to make calls through all the major carriers as they extend support to UMA at varied degrees.
Charge Your Phone Battery
Low battery is quite challenging for connecting calls. Make sure your phone is charged before you move out of the house. If your work profile is mobile or you travel long distances it is a good idea to invest in portable battery charger. Practice the below given habits to avoid misuse of battery:

• Put off the Bluetooth when not in use
• Adjust the brightness to the optimum level
• Avoid extreme temperatures
• Close apps working in the background
• Check for any push notifications.Not doing this can certainly diminish the life of phone battery, moreover, you will struggle more with signal issues.

 Avoid Crowds
When you have to make important calls it is important you make them in lesser crowded areas. It will not only help you focus on your conversation but also your phone will be able to make a reliable connection.
Find Cell Phone Tower In Proximity
If you ever get approached by the carrier or tower companies for cell tower lease agreement consider it for at least discussion. Your network problem will get automatically solved and also you will get a huge amount of money for leasing out your property.

Originally Published on:- https://cellsitelease.tumblr.com/post/184269009364/lesser-known-ways-to-get-better-cell-phone

Cell Tower Lease: Discussing Important Aspects

Cellular tower lease is a topic of interest for both tower companies and wireless carriers. These companies often contact land owners for leasing out pieces of land, in lieu of which the property owners get additional income for an agreed period of time. The amount paid to the owners varies depending on a number of factors like location, the population density of the locality and more.

There are some property owners which sell their parcels of land to companies, third party investors etc. that are interested in buyout.

Appreciation In Value Nearing The Expiry Date

Cell phone tower lease is different from typical real estate leases for the value associated with former gets to improve over the time. In fact when it is close to the expiry period its value gets better. It happens owing to the costs like deconstruction and relocation that come into play if the lease is not renewed.

Continuing with the existing agreement saves the tower and carrier companies from starting the whole process from the scratch. Cellular lease agreements besides following real estate agreements consider telecommunication agreements too. Both the seller and the investor involved in a lease should be well acquainted with all the provisions for seamless progress of the lease.

Important Cell Tower Basics

Both parties involved in cellular lease should be aware of the fact that the lease encompasses ground lease, which is mutually agreed at the time of getting into agreement. Sometimes leases may include the adjacent grounds too.

Also, cell site lease mostly includes additional clauses like government approvals, construction fees, permits, termination and optional fees and more. While these clauses have a life of one or six months, lease term may extend up to five or ten years and the option for term extension can run up to thirty or fifty years.

There is also cell site lease cancellation provision which allows company or investor to call a quit without penalty. Nevertheless early cancellations are a rare sight, especially when there are multiple tenants in the space.

Property owners should see that leases should bring positive effects on the value of their assets because penalty is levied upon when the rights are transferred to a third party.

Things You Must Lookout For

It should be a win-win situation for both the sellers and the investors or buyers. There are some important things they both should consider so that the value of the real estate behind the lease remains unaffected. Of course the rates you get for the lease top the list but there are more to think about such as:

Right of first refusal affects the cash flows or sale of property and even both. Either involved parties should exempt this consideration from the sale of an underlying real estate or it shall be applied only when lease rights are not in sync with the property.

When any one or both the involved parties in lease cannot reach out to a mutually agreed rent for the configuration, it is best to refer the rent comparable from local investors with similar towers.

During the whole stretch of the lease period, there can be periodic in the value of tower. Those who do not have idea of how it works can involve cellular lease consultants to intervene and guide the sellers and buyers with proper insight and solutions.

It is important to take account of aforementioned points so that the investor and property owner both take rational decisions.

Originally Published on :-https://articles.abilogic.com/353633/cell-tower-lease-discussing-important.html

PREDATORY TRUTHS AND OPPORTUNISTIC SELLING

During my time working on the consulting side of the business, I have been asked several times about why being independent matters with cellular lease negotiations for cell site lease. I have also been asked about the difference between companies and their intentions. I have been exposed to nearly every sales approach and tactic ever developed. I have also been introduced and have been courted by nearly every company in the acquisition/aggregation marketplace.

I can say with a great deal of confidence that every single group I have encountered has been professional, courteous, and also very well marketed and represented. This representation is a byproduct of highly sophisticated and skilled leaders, very hard working and endearing sales representatives. It also an indication of a robust operating budget.

These groups are making a lot of money.

This operating budget is generally funded by a marketplace that landowners are not able to connect with, but there is also a significant portion of their budget that is generated by Opportunistic Selling.

Opportunistic Selling is not too dissimilar from the Predatory Selling which was a buzzword during the mortgage industry boom. If you do not recall that dark time in our country’s history, a mortgage sales rep would sell higher interest rates or less favorable terms to a landowner in order to generate higher yields and, thus, higher commission spreads.

I have known some reps who were making $500k-$1m dollars annually and many of them could not even explain to me the processes associated with their ascension to that level of income.

The reason that many people were extracting this much from industry, that failed, was that the entire market was unregulated. Representatives were permitted to do what they needed to close business, and often the market was dictated by the representative’s ability to charge more for certain programs. Or even worse, committing fraud to help advance their bottom line:

https://www.fool.com/investing/2016/09/18/dissecting-wells-fargos-fraud.aspx

Our goal at Leasehold Finance Advisors LLC is to help educate landowners in the types of Predatory Selling that have become the norm in cellular leasehold industry, so you can help avoid contributing to someone else’s wealth.

Here are some basic things you can look for, to help you know if the company that you are being approached by is aligned with your interests:

1. Are they always showing you recent news stories about mergers or technological advances aimed to make you feel like your site could go away? – If you are dealing with any group that likes to share these stories, stop right where you are and run away. Another tool that groups will use is “your site might go away if you don’t sign an extension now.” Anyone who will use negative news or fear to earn your business is not your ally.
2. Are they offering signing bonuses or imposing strict deadlines for your decision? – Many sales or lease negotiations will include signing bonuses attempting to lure you away from the total value of your transaction. Signing bonuses are nothing more than a way to reduce the value of the total negotiation through clever mathematics. If you are finished with your negotiation, they can be a nice added feature, but unless you know for sure you are at the top of your negotiation you are merely giving away money.
3. Does the company you are dealing with also acquire sites? – Make no mistake, it is impossible to wear both hats in this industry and do so with 100% altruism. If a company also finances their own transactions or is backed by a financial sponsor who buys sites, they will always be looking for a way to offer a landowner less than what they could get on the open market. If a company takes this approach with you, you may often feel like you are receiving top dollar and that “someone else is the one getting the bad deal” but in the end, you are contributing to that company’s ability to continue to pursue those opportunities.
4. Does the representative have a salary? – Salaries cost money. Salaries are often paid out to 50-100 different agents nationwide. When you deal with large companies with significant overhead it often feels good because their marketing materials and presence is sold as a feature to you. An example of that would be receiving .90 when you could have received a dollar. You may tell yourself that that .10 is worth it, knowing that you are dealing with a big company. Ask yourself this question: If I received $400,000 for an asset, would I be willing – at the close – to pay someone a $40,000 fee because they are a bigger company or because I like the person? Ask yourself how often you connect with the mortgage rep who closed on your last home purchase? The size of the company has no bearing on the value of your opportunity.
5. Are they offering you future “unguaranteed” consideration? – If someone makes claims of a dividend, revenue share, or any other component of the transaction that enhances the value of the transaction (beyond the pay-out) take a step back and ask yourself “Is this group willing to guarantee I will get what they are saying? Is this group willing to give me back my lump sum and site if they do not live up to their guarantees?” Now more than ever, creative deal structuring is luring landowners to transact in a way that increases their exposure to risk.
A recent example would be a group offering to trade your rental for future consideration or dividends.

THE SECRETS OF SELLING A CELL SITE

Understanding why companies will bid how they bid is one of the more difficult analysis an average landowner will have to make during their time leasing a tower site. While selling an asset is not always the preferred choice, when they do make the decision to sell they want to be assured that they are receiving the highest value achievable.

That is not always easy, as evidenced by the graph above. Investment groups will focus their attention on a certain rate of return (+/- variance in appetite) and merely factor in variables that – they alone – are aware of, not disclosing that information to the landowner, to drive up their rate of return after the acquisition.

If you look at the graph above, you can see the target ROI/multiple an investor may pay if you are in a 20 year lease. Assumptions are based upon a 3% annual escalator and a Tier 1 or Tier 2 Tenant. Notice how the both changes as you get closer to end of the lease.

An example would be a brokerage house that also acquires sites will often support a landowner in their endeavor to sell or negotiate a site. These groups will withhold how much they could get with a rent negotiation or a resale to benefit their acquisition. It is not unheard of to hear of people earning $100k-$300k commissions on one particular transaction-based relationship. And by the way, the people earning this type of settlement is a SALESPERSON.

Believe it.

On the flip side, many landowners will often recognize that their lease multiple is increasing every year and feel that if they raise their rent that they will be able to not only increase their rent roll but also that they will be able to achieve the same “high” multiple once they raise their rent.

This creates an exaggeration in value that often causes a landowner to not realize a substantial opportunity presented to them. Once the cell site lease is negotiated or extended the value of the sale (in multiple terms) resets back to the original value range. The reason for this is basically due to the lack of upside opportunity for the investor.

An example would be a landowner with a $500 monthly rent tower, with multiple tenants.   They get approached for a $100,000 sale opportunity and they figure that they are now receiving 200x in sale opportunity. They make the decision to renegotiate their lease and receive $800 in rent. Many landowners now erroneously believe that someone will now buy the site for $160,000 in the sale price.

This is not the case.

Sadly, many landowners today are compelled to deal with the 3-5 companies that approach them monthly often taking 10’s of thousands of dollars less than they should. Additionally, once a landowner extends their lease they often are now closing the door from their ability to deal with an extended group of investors.

Once the lease is extended, they are now exposed to a smaller pool of investors and (sadly) are subjected to pricing models that include overhead, commissions, and expenses for the investment company. Reason being, the highest paying investors will always gravitate towards the sites with expiring leases.

At Leasehold Finance Advisors we recommend taking a step back to understand how big this event could be.   LFA currently shops tower assets to over 15 different investment groups and ensures a landowner receives the highest value achievable.

Landowners… this value is yours…   You wouldn’t walk down the street and give away $50k of your hard earned money.Don’t give it to the next big banker or smooth talking salesperson that calls your line.

*Pricing Multiples above can often be impacted by the appetite of the company, negotiation, and often the timing of negotiation

Why You Need A Cell Tower Lease Consultant?

In recent few years landlord consultants, agents and attorneys have grown considerably. It is good news for the landowners who are open for cell site lease opportunities coming their way. Decades back when there was dearth of qualified and reliable Advisors landowners used to feel miserable and deals were done on the grounds which were not truly based on real estate facts and logics. But the scenario has completely changed now; you can hire a proficient consultant to help you through the process till end.

What To Expect From A Certified Cell Tower Consultant?

A property owner like you who is in discussion with wireless carriers would seek the professional assistance for taking care of his interests. You need professional support because the other side will turn up with a team of professionals. Deploying certified consultant for handling discussions from your side is imperative for not only protecting your rights as a land owner but also it will ensure that you get maximum out of it.

Hiring skilled consultant will benefit you in following ways:

·  It will be possible and easy to understand the rate and terms used during negotiations. You will get inculcated on various aspects of the contract. Often landowners who do not hire someone capable or carry on without any support encounter surprise consequences. There can be nothing more overwhelming than entering into an agreement which does not consider your interest.

·  It is a very challenging task to determine lease value of your property and negotiate with the wireless carriers to reach a fair price and suitable terms for your land asset. They can extend their support for cell tower lease renewals. Obviously you don’t want to lose on the value added to your property in all these years of agreement. Owing to demographic transitions, commercial interests and inflation you always have a say in renegotiation.

·    Since it is not only about money, you are equally concerned about your property. The professional assistance will help you understand the criteria of tower companies on utility bills, any damages done to property, roofing repairs if it is a rooftop site, safety guidelines, matters related to maintenance and many more.

With due professional assistance you will either get into a profitable agreement or you will be saved from huge losses to your pocket or property.

Things To Look For In Your Cell Tower Consultant

With a plethora of choices, it can be difficult for you which one to pick and which company is to be dropped. Here goes the list of qualities you should look for an expert you are hiring:

1. Relevant and Recent Work Experience- Not having recent and relevant experience on the carrier site does not make him the best Advisors for you. He may have worked in the past but not being aware of dynamic technology and lacking the inside insight does not make him the most suitable support.

2. Proven track of record- Having industry experience might not suffice unless it is accompanied with an excellent track record. If a consultant boasts of 300% success then you better look out for options because he is not sharing some realistic figures for his work. You will find the ace Advisors, just be a little patient.

3. Accredited References- Having positive feedbacks from accredited institutions like top universities, hospital systems, and real estate companies assure you to a great extent for giving the deal in right hands.

4. Insurance- Your consultant has to be insured to proffer you his services. Errors and Omissions Insurance Policy is a minimum to look out for in your consultant. It will help you as his client to be awarded the policy for his act of negligence.

The Bottom Line

You cannot expect the tower companies to be on your side and hence hiring a competent consultant is completely worth it.