Frequently Asked Questions
1. If my lease can be terminated, why do you want to buy it? For most landlords, receiving site rent is a "zero-sum" proposition: either they receive rent, or they don't. On the other hand, WIP seeks to compile a portfolio of site leases in which a single lease termination is far less consequential. This is one reason why WIP is able to pay a large, up-front lump sum for the future rent associated with your site and assume the risk of a possible site termination. In addition to this, WIP purchases future rent on a discounted basis reflecting the financial risk associated with potential site terminations.
2. What is WIP buying exactly? WIP is essentially buying the right to receive site rent for a period of 15-30 years and certain limited rights designed to ensure its ability to collect the "purchased" rent. The legal term for this right is a "leasehold interest." Depending on the circumstances, WIP may also seek an easement, which is a right to use another person's real estate for a specific purpose. The term of the easement would be equal to that of the leasehold interest, i.e., 15-30 years
3. How much will WIP pay for my cell site lease? The price paid for your cell site lease depends on the wireless carrier or tower company on your site, the location of your site, the terms of your lease, the prepayment period and on a risk assessment. Please feel free to contact us; we will provide you with an immediate estimate with absolutely no obligation on your part.
4. But wouldn't I make more money by keeping the lease? This depends largely on whether (a) the lease is eventually terminated by the carrier or tower company or (b) the carrier or tower company obtains a future reduction in site rent. Due to these considerations, it is generally difficult to borrow against the lease at your local bank. Even if your site is not terminated and rent is not reduced, the cash flow associated with your lease will be realized in small increments over a long-term period. In most cases, the comparison between receiving a lump sum amount today versus receiving smaller and uncertain incremental payments over a long-term period is the key decision point.
5. When can I receive the money? Once we receive a valid, signed agreement from you we will usually send you a check within 30 days.
6. If I convert my lease to cash, will I still own the underlying property? Yes. WIP is interested only in purchasing the rent specifically associated with your site for a fixed period of time. After the prepayment period has come to an end, the right to receive all rent will revert back to you -- unless you choose to enter into another lease prepayment transaction.
7. If I convert my lease, can I still sell my property? Yes. You are free to sell your property without any restrictions and keep the money you received from WIP in connection with the lease prepayment.
8. What happens if the tenant terminates the lease during the 15-30 year lease prepayment period? You will keep the full amount of the up-front lump sum, even if the wireless carrier or tower company terminates the lease at any time during the 15-30 year lease prepayment period. In other words, the risk of lease termination has been effectively and unconditionally transferred by virtue of the prepayment transaction with "no strings attached."
9. I have multiple tenants. Can I "cash in" on all of them? Yes. Assuming your leases meet our criteria, WIP will convert each of them into cash.
10. Does WIP have the money to move quickly? Yes. WIP has access to a significant pool of funding provided by a major private equity institution. This ensures our ability to execute and enables you to receive your lump sum payment quickly (usually within 30 days).
11. OK, I'm interested. What do I do? Find a copy of your cell site leases. Then e-mail us, contact us on-line, or call us at (888) 880-4699. We look forward to working with you.