Calculation to figure if cell site buyout offer is good or not

by Robin
(Dallas Texas)

What formula would I use to figure whether a cellular lease buyout is good vs. hanging on to the monthly income? e.g. present value, a discounted cash flow statement, ?? thanks.

Comments for Calculation to figure if cell site buyout offer is good or not

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Feb 18, 2012
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starstarstarstarstar 		Apple to Orange comparison....watch out....
by: Sean (Tower Genius)

Please give us a call to discuss. I am 99% sure I know who offered you this deal and I would prefer to discuss the details of such an arrangement in depth with you.

Believe me... these deals are not always what they appear and I can explain why to you.

Please contact us at 888-313-9750. The call will not cost you anything for our initial advice and it could save you lots of money over the long haul.
Feb 18, 2012
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starstarstarstarstar 		Additional Information
by: Anonymous

1-Tower owned by Crown Castle
2-Yearly--$19,300
3-None---every 5 yrs interest increase
4-30 yrs left
5-we own land under tower
6-recent offer of buyout of $400,000, $60,000 down, remain to finance for 2.5% interest times 20 years, payments about $1802 per month

Are these figures in line with the current prices?
Feb 15, 2012
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starstarstar 		More information is needed
by: Tower Genius

Who is the tower tenant?
How much rent are they paying?
What are the yearly rental escalations?
When did your lease agreement commence and how much time is left on the deal?
Do you own the steel and control the ground space?
What does the site cover?
Feb 15, 2012
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starstarstarstarstar 		Value of Land for Cell Tower
by: Anonymous

We have been made an offer by the cell tower company to outright buy the land under the tower. What would be the value of an 80'x 80'
site located on (two combined US Hwy) in the state of Alabama?
Jul 29, 2010
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starstarstarstarstar 		Calculating a lease buyout offer
by: Tower Genius

Thanks for the question Robin. The financial aspects are very important, but at the end of the day, everyone who sells their cell tower lease has a reason. You are giving up long term income for cash tomorrow. Giving up long future payments may or may not be what you need unless you can take they payout and put it into an income producing investment. A cell tower lease can be terminated so you can hedge the risk by selling your lease and putting it into something else. Not all lease buyout deals are apples to apples.

1. When did your cell tower lease commence?
2. What is your current rental and escalations?
3. How much left on the back-end of the lease?
4. Do you control the ground space and/or are you receiving or can you receive additional collocation revenue?

Please contact me at 888-313-9759 or email me at steve(at)Tower Genius(dot)com to discuss.

Thanks.

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