Property owners can make money out of their land in many ways including a cell tower lease buyouts. Companies usually pay a certain sum for several years or even decades. This is in exchange for the right to build a tower or use an existing tower. Their aim is to improve their coverage and provide better service to their customers to attract more subscribers. While this is a nice way to earn passive income, there are several reasons why people might want to give it up and to cell tower lease buyouts instead.
The money paid for the lease might not be much if you look at the monthly rates. However, the figures can be substantial if you look at the yearly payments. It is especially large for multi-decade lease contracts. Rather than get the money bit by bit, it might be more useful to get it as a lump sum. The amount may be enough to cover a financial emergency if the owner does not have enough cash on hand for it. For example, someone in the family may have gotten sick and hospital bills are piling up.
In some cases, people cash out despite being financially stable because they want to cash in on an investment opportunity. Perhaps they think that they can make the lump sum grow more if they place it in another asset or business. This has to be studied carefully as investments can just as easily result in losses. Meanwhile, leases are guaranteed money because of the contract. It is important for owners to determine their risk appetite so they can decide accordingly. It is also crucial to weigh the investment scheme to avoid scams and maximize potential profits.
If a landowner has accumulated substantial debts, then he can get himself in a dire situation where the only way out is to sell assets to pay them off. Selling the land itself can be too drastic but selling the lease should be fine. He can still retain the property while another entity manages the cell tower. If the loans are repaid right away, then the borrower will not have to worry about the mounting interest rates. Peace of mind is priceless. Buyouts may not be the ideal scenario but they can really help in this case.
Always study your options carefully to protect your personal interests.