Convert your wireless tower or small cell site lease agreement to a telecommunications easement. Build equity and access capital up to 20x your annual rent.
Wireless Equity Group will convert your cell tower lease agreement to a telecommunications easement at no cost. The rights can then be sold to a telecommunications investor or tower company for a set period of time at up to 20 times the annual rents collected. The telecom company then becomes a partner with the property owner and any revenue from additional carriers that are added to the easement is shared with the property owner.
Benefits of a Telecom Easement
You don’t have to sell any real estate (unless you want to) when you convert your lease to a cell tower easement. The property owner can then cash out with a large lump sum payment at an average of up to 20x the annual collected rents. Those funds can then be re-invested into higher-performing assets and receive the following additional benefits:
- Telecommunication Easements have preferential tax treatment; are partially exempt and qualify for long-term capital gains.
- Telecom Easements qualify under 1031 exchange rules; allowing property owners the ability to buy additional real estate of equal or greater value.
- Pulling out Equity now on your cell tower easement eliminates the risk of a wireless carrier terminating or renegotiating their lease
- Re-investing in higher-performing and more flexible assets can be a hedge against increased inflation.
Ways our Clients Re-Invested funds and outperformed their telecom lease revenue
- Paid off debt
- Bought more real estate
- Re-Invested in their business
- Renovated their current property to increase value
- Set up a college fund
- Invested in Retirement planning – 401k/Life Insurance
Cost to Convert to a Telecom Easement
There are no costs to you, as the property owner, for converting your lease agreement to a telecom easement. When you sell your cell tower easement to a tower investor the tower company agrees to cover all closing costs except for any transfer taxes associated with the closing.
Telcom Easement Timeline
The process to convert a wireless lease to a telecom easement is based on several factors. The general timeline to convert a cell tower lease agreement to a telecom easement can be completed in 14-90 days depending on the terms of the current cell site lease.
Telecom Easement Requirements
In order to create a cell tower easement, there are several due diligence items required by the end purchaser which include but are not limited to the following:
- Receipt of a title commitment from showing title clear of any liens, encumbrances, outstanding taxes which are otherwise due and payable, or other unsatisfied title closing requirements necessary for an insured closing with marketable title;
- Approval of the Easement Agreement in a mutually agreeable form;
- Proper documentation of the Lease and rents, including your affirmation that you have not received any written or verbal notice of termination, modification or other correspondence from the tenant related to the Lease;
- Compliance with any tenant right of first refusal or consent requirement, if applicable, related to Landlord’s assignment of the Lease;
- Desktop environmental database search returns a determination of “Low” or “Moderate” risk.
- Proof of Rent Payments under the Lease (minimum of 3 months received in the last 6 months); e.g.: copies of rent checks/stubs and/or direct deposit statements.
- Landlord Request for Information (RFI): Completed and executed including social security numbers for individuals with 20% or greater ownership positions in the entity which owns the property.
- Landlord’s comments or Landlord’s counsel’s comments, if any, to the Easement Agreement (“Easement”)
- If an existing mortgage is in place on the property: A Mortgage Statement and Lender contact information for obtaining a non-disturbance agreement from Lender (required only if the property is encumbered by a Mortgage, Deed of Trust, Line of Credit or similar instrument).
- Legal entity organizational documents (including any Amendments thereto) showing proof of authority, for all entities owning an interest in the Property
Utility Easement Valuation Estimates as of 12/1/2022
| Rent/m | Low End | Average | High End |
| $5,000 | $960,000 | $1,030,200 | $1,110,000 |
| $4,900 | $940,800 | $1,009,596 | $1,087,800 |
| $4,800 | $921,600 | $988,992 | $1,065,600 |
| $4,700 | $902,400 | $968,388 | $1,043,400 |
| $4,600 | $883,200 | $947,784 | $1,021,200 |
| $4,500 | $864,000 | $927,180 | $999,000 |
| $4,400 | $844,800 | $906,576 | $976,800 |
| $4,300 | $825,600 | $885,972 | $954,600 |
| $4,200 | $806,400 | $865,368 | $932,400 |
| $4,100 | $787,200 | $844,764 | $910,200 |
| $4,000 | $768,000 | $824,160 | $888,000 |
| $3,900 | $748,800 | $803,556 | $865,800 |
| $3,800 | $729,600 | $782,952 | $843,600 |
| $3,700 | $710,400 | $762,348 | $821,400 |
| $3,600 | $691,200 | $741,744 | $799,200 |
| $3,500 | $672,000 | $721,140 | $777,000 |
| $3,400 | $652,800 | $700,536 | $754,800 |
| $3,300 | $633,600 | $679,932 | $732,600 |
| $3,200 | $614,400 | $659,328 | $710,400 |
| $3,100 | $595,200 | $638,724 | $688,200 |
| $3,000 | $576,000 | $618,120 | $666,000 |
| $2,900 | $556,800 | $597,516 | $643,800 |
| $2,800 | $537,600 | $576,912 | $621,600 |
| $2,700 | $518,400 | $556,308 | $599,400 |
| $2,600 | $499,200 | $535,704 | $577,200 |
| $2,500 | $480,000 | $515,100 | $555,000 |
| $2,400 | $460,800 | $494,496 | $532,800 |
| $2,300 | $441,600 | $473,892 | $510,600 |
| $2,200 | $422,400 | $453,288 | $488,400 |
| $2,100 | $403,200 | $432,684 | $466,200 |
| $2,000 | $384,000 | $412,080 | $444,000 |
| $1,900 | $364,800 | $391,476 | $421,800 |
| $1,800 | $345,600 | $370,872 | $399,600 |
| $1,700 | $326,400 | $350,268 | $377,400 |
| $1,600 | $307,200 | $329,664 | $355,200 |
| $1,500 | $288,000 | $309,060 | $333,000 |
| $1,400 | $268,800 | $288,456 | $310,800 |
| $1,300 | $249,600 | $267,852 | $288,600 |
| $1,200 | $230,400 | $247,248 | $266,400 |
| $1,100 | $211,200 | $226,644 | $244,200 |
| $1,000 | $192,000 | $206,040 | $222,000 |
| $900 | $172,800 | $185,436 | $199,800 |
| $800 | $153,600 | $164,832 | $177,600 |
| $700 | $134,400 | $144,228 | $155,400 |
| $600 | $115,200 | $123,624 | $133,200 |
| $500 | $96,000 | $103,020 | $111,000 |
| $400 | $76,800 | $82,416 | $88,800 |
| $300 | $57,600 | $61,812 | $66,600 |
Enter your current monthly rent and instantly see your estimated telecom easement value. To obtain a written Letter of Intent (LOI) and to begin the process to coverting your wireless lease agreement to an easement, complete the form and we will have an official offer to you within 72 hours.