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Should you sell your cell tower lease?

There are many reasons why our customers choose to sell their cell tower lease for a lump sum of cash. Some use the money to pay down debt, cover medical expenses, pay for college, or fund their retirement. Others use their lease buyout cash to purchase real estate or expand their business.

If you need cash to cover a major expense right now, the decision to sell your cell tower lease might be an easy one for you to make, especially if you don’t have an alternative source for raising cash. If your site meets our criteria, we can complete a lease purchase transaction in a straightforward, timely manner, and get cash into your hands quickly so that you can meet that urgent expense.

But what if you don’t need for cash right now? Does that mean that selling your cell tower lease is a bad idea? Before we answer that, let’s back up and consider your ground lease for what it really is: a financial asset. Like stocks, bonds, mutual funds, real estate, retirement accounts, bank CDs or any other type of financial asset that you own, a cell tower lease represents a portion of your personal wealth. And like any financial asset, it carries risk.

So what are the inherent risks to a cell tower lease? As you know, your monthly rent can be reduced by the cell site owner, or the site could be decommissioned following a consolidation in the wireless industry, resulting in your monthly rent disappearing altogether. While this is a genuine risk, the truth is it’s a statistically low risk and unlikely to happen.

A far greater risk is opportunity cost. That means losing out on the opportunity to earn superior growth from a financial asset. Applied to your cell tower lease, it means that your lease buyout cash invested today may provide significantly stronger growth over the next 10, 20 or 30 years compared to cumulative value of monthly rent in the same time period. For many of our clients, the decision to sell their cell tower lease to Landmark Dividend was never about needing money now, but wanting to achieve the best possible growth over the long term.

If you’d like to learn more about the process of liquidating your cell tower lease, give us a call today at 1-800-843-2024 or click here to submit your information and we’ll contact you. There is never a cost or obligation to speak with us. We’re here to provide you with straightforward information to help you make the best possible financial decision regarding your cell tower lease.