If you’re a cell site leaseholder who has been getting a barrage of phone calls about your lease from various third-party buyout companies, you may be feeling overwhelmed. A ton of information is coming in from numerous parties, all claiming to have an offer you can’t refuse. The optimist in you may be excited and hopeful, while your inner skeptic is fearful and unconvinced. Don’t worry—this kind of reaction is common.
Paul Hwang, Chief Executive Officer and Founder of The Filo Group, works directly with cell site owners every day and sees firsthand how they are often left feeling confused and worn-out by the process. “As is the case with any decision that can have a significant impact on your financial future, it’s normal to have mixed emotions. The key is to gain as much knowledge as you can to make an informed and confident decision,” advises Paul.
“By the time I speak with a leaseholder, she may have already been approached by several lease acquisition companies that are pressuring her to do business. First and foremost, she wants to be reassured that she’s getting an honest deal and that the wool isn’t being pulled over her eyes,” says Paul. “That’s why, as a leaseholder, it is important to closely evaluate the fine print and make sure you’re truly getting what you think you are. To guarantee a smooth and fruitful transaction, it’s critical to have a team of experts, like The Filo Group, on your side to assess the offer, advocate on your behalf, and ensure that you are 100% informed.”
Paul also offers these key tips:
Don’t just look at the overall dollar amount—assess the way the deal is structured.
As the old adage goes, the devil is in the details. Dollars signs can be persuasive, but it’s crucial that leaseholders scrutinize the exact terms of the deal when making a final decision.
“Cell site lease buyout contracts are notorious for having terms that are favorable for the acquisition company and not for the landlord. If you don’t know what you’re looking at and specifically looking for, you can go cross-eyed trying to sift through the legal jargon. And while it’s tempting to just sign on the dotted line and hope for the best, that could be a huge mistake,” warns Paul. “As just one example among many, keep a close eye on whether the contract involves you giving up an expanded easement. It’s not unusual for leaseholders to unwittingly sign away rights to a piece of their property and, consequently, limit future opportunities for themselves.”
Make sure the lease acquisition company can deliver on its promises.
Not all wireless lease acquisition companies are created equal. An agreement is only as good as the entities backing it.
Paul illustrates this point: “Let’s say the contract is for a million dollars, but the terms state that the sum is to be paid in $250,000 increments over the course of four years. Some outfits don’t have the stability or financial support to fulfill their end of the arrangement, meaning they may not even be around for the four years it takes to complete the deal, which leaves the leaseholder unpaid and unsatisfied. Alternatively, the fine print is such that the subsequent payments could be cancelled for a number of reasons. Because we have over 14 years of experience in the business of wireless lease buyouts, we know what goes on behind the scenes, and we’re familiar with the players, their reputations, and their abilities to follow through. We use that insider information when advising our clients.”
Always seek expert advice.
The wireless industry is vast and ever-changing. Each facet has its own nuances that can be exceedingly difficult to stay on top of, even for the savviest businessperson.
“People can get wrapped up in the allure of dollar signs, and understandably so. But it is imperative that they fully understand the risks of the deal and don’t leave money on the table,” says Paul. “Lease acquisition companies want what you have. What they don’t want is you partnering up with The Filo Group because we help you become telecom smart. For years we were on the buyout side of the business. We know every trick of the trade, and they can’t get anything past us. That’s bad news for them and great news for the leaseholder’s best interest.”
Whatever you do, don’t allow being overwhelmed to lead to inaction. Some leaseholders miss out on life-changing income because it’s easier and more comfortable to stick with the status quo. Alternatively, some leaseholders sign away rights and get less money than they deserve by jumping too quickly on a buyout offer. “It’s absolutely worth the work involved to explore and understand your options,” encourages Paul, “and The Filo Group is here to help you every step of the way.”
Contact us today for a free consultation.