What do we mean when we say creating long-term value for your cell site? We focus on 3 things:
Wireless Lease Rental Income Streams:
Every lease is different in some way. They all have the same components for the most part but structure really matters with wireless leases and cell sites. The biggest component is the on going rental income stream. There are a ways to make sure that income continues to grow year after year. At Cell Site Capital we use our experience and market data to make your cell site is valued correctly to create the best long-term lease for you. Whether it is a new site or an expiring lease let us show you what your site could be worth.
One of the keys to a solid investment property is the ability to sell or convert that asset to cash when needed. Most of our clients look at their cell site lease as a “non-core asset”. Because the wireless carrier or tower company owns the tower or equipment, cell sites are very difficult to borrow against with normal lending institutions and banks. Having the ability to convert that monthly or yearly income to cash really matters. Understanding “Rights of First Refusals” or “consent clauses” in a lease can make the difference between having the ability to liquidate the asset and having the Tower Company or wireless carrier make that decision for you.
Chances are you are being taxed on your wireless lease income the same way you are within your job, at ordinary income tax rate. This means whatever your current tax bracket might be, you are paying that same high tax amount on your wireless lease income each year. We structure our transactions to be “ long-term capital gains” eligible. This usually means a 15% total federal tax liability and in some cases much lower. You can keep more of you’re proceeds in your pocket.
Investors and large property owners also like the 1031 Exchange. This allows you to defer all taxes and reinvest in an income producing property. This allows you to leverage a wireless lease and purchase another property in order to gain a much higher return on your investment.
You should always check with your tax advisor to determine whether your transaction qualifies for this low tax treatment. Feel free to have your tax advisor give us a call do discuss our process and structure.
Click to request more information or give us a call today. Cell Site Capital offers the best structure and most competitive pay-outs to our land owners. Whether you are looking for consultation and information or a wireless lease buy-out proposal, let us help.