Real estate investors buying foreclosures are increasingly finding apartment buildings with leases of existing cellular antennas. Cell phone tower leases can be a foreclosure buyer’s best friend. However, buying foreclosed properties with a cell site lease is not easy, but the deals are there. Even the savvy real estate investor who buys a lot of foreclosures will likely not be a telecom leasing expert, and frankly, even real estate investment experts don’t know how to deal with a cell phone tower lease when buying a property. mortgage. edifice.
A cellular antenna lease will be attached to the cell tower in raw land or the rooftop cellular antenna installation on commercial or residential property. If the property is in foreclosure and the bank is not yet the recipient, it will be difficult to get the information unless the landlord / landlord cooperates and trusts you enough to allow you to view the lease. There really is no way to identify these types of foreclosed properties. These types of offers are very difficult to find and we recommend that you do not waste time chasing these rainbows. Focus on the ripe fruit: residential apartment buildings and bank-owned commercial properties
It is much easier to search for REOs with existing cellular tenants. If the property is owned by a bank, as a recipient, they should disclose all existing leases that tax the premises before the sale, and it is in their best interest to provide the details of the lease or, if you are lucky … multiple carrier leases.
You need to calculate the value of the lease. You want to know the start date of the lease, which is the date they started paying the owner after cell site approval. You want to know how much rent they pay monthly and what are the annual increases that the previous owner agreed to and how many years are left at the back of the lease. The particular cell phone operator will also determine the value of the cell phone tower lease on Wall Street.
How can real estate investors find foreclosed properties that have cell phone operators as tenants?
This is where you need to get creative. Good foreclosure investors have their bird dogs that send them offers. Chances are, they never thought of looking for cell phone site lease foreclosures. Your best option is to connect with your bank’s foreclosure specialist or REO administrator.
All major banks have buildings on their books with cell site leases that they are not marketing to investors. They’re just too busy to put together a database of foreclosed properties with tenants from existing wireless service providers.
Successful real estate investors looking to find these deals should leverage their existing relationships with banks doing business in the territory in which they operate to identify potential deals that have existing cell leases and where the bank acts as a recipient. Ask your banker to scan your foreclosure / REO database for terms like Verizon Wireless, T-Mobile, Omnipoint, Cellco, Sprint, Nextel, Alltel, Cingular, AT&T, Metro PCS, Crown, Towerco, SBA or American Tower. If you find a foreclosed property or building with a cell tower lease attached, it can significantly sweeten the deal on its own because you can take cash out of the cell lease, often for six-figure amounts, and put it in for the mortgage or to buy. other. edifice.
It’s also a very good idea to have a cell phone tower leasing expert review the terms of your lease, which disqualifies 99% of real estate attorneys.