Based on our years of service to cell site owners, we've compiled this list of the questions we encounter most often, and provided the answers you'll need to move forward toward your goals.
Each client brings to the table a unique set of concerns, areas of interest, and financial objectives. What are yours? To get the answers relevant to your particular situation, call us.
- What is an easement?
- How much will I get for my lease?
- If my lease is in danger of termination, why do you want to buy it from me?
- Can you tell me more about what's going on in the telecommunications industry?
- I'd like to tell you more about my site. When can we talk?
- What are the tax implications of the Unison lease conversion?
- Do I pay more taxes this way?
- Is it true that I'm not getting as much money as I would by keeping the lease?
- Do I still get my monthly lease check while the lease conversion is being processed?
- Will my tenant let me convert my lease with Unison?
- If I convert my lease, do I still own the property where the site is located?
- What happens if I have a mortgage?
- If I convert my lease, can I sell my property later - and still keep the money?
- What happens if the tenant damages my property after the lease conversion?
- How long does the Unison lease conversion take?
- Are there any factors that could delay the lease conversion process?
- Does Unison have the money to close my lease conversion?
- Do you charge for any of your consultations or services?
What is an easement?
An easement gives someone the right to use your land for a specifically stated purpose. For example, a telephone or power company may have an access easement on your property to install and maintain the telephone or power poles. The Unison easement allows us to access and operate a wireless communications site.
How much will I get for my lease?
Our site development specialist can give you a good sense of your lease's actual cash value after we examine the lease and learn more about your wireless site. Please read our What to Expect page for more information on how we determine the value of your site.
If my lease is in danger of termination, why do you want to buy it from me?
Unison pools its lease termination risk through a large nationwide portfolio. Like an insurance plan, the risk presented by one lease is absorbed by the larger pool, so one termination does not affect Unison as significantly as it would affect you.
Can you tell me more about what's going on in the telecommunications industry?
The telecom industry these days is volatile. Cell phone market penetration has matured. Wireless companies now fight harder to retain their customers, and make less money per customer across the board.
Meanwhile, cell phone and tower companies continue to carry over $100 billion in debt, and servicing that debt further reduces profitability.
High debt and low profit are driving a major wave of consolidation, as carriers and operators seek to reduce expenses. Not surprisingly, most carriers have implemented large scale rent reduction programs, and are beginning to decommission overlapping sites. We've compiled a user-friendly Industry Facts page to summarize these and other key trends in the telecom sector.
If you hold one wireless lease, the lack of a lease guarantee and the efforts to reduce rent and eliminate overlap pose a material financial risk. Unison's program is designed to counter that risk through consolidation and marketing for future and/or replacement tenants. By converting your lease, you not only eliminate this risk, you seize the opportunity to maximize your profits and secure your financial future.
I'd like to tell you more about my wireless site. When can we talk?
Right away! Call us toll free at 1-866-599-SITE (1-866-599-7483, between 9AM and 5PM EST), or email us.
What are the tax implications of the Unison lease conversion?
Unison's lease conversion has been carefully structured to qualify in most cases for capital gains treatment, as well as the 1031 Like-Kind Exchange (which defers tax liability indefinitely into the future, until you or your heirs take the investment out of real-estate form). We can provide basic guidance on standard tax treatment of our transaction; however, your accountant or tax advisor remains your best and final resource for tax advice.
Do I pay more taxes this way?
No. Right now you probably pay ordinary income tax on your monthly lease income. When you convert your lease, in many cases the lump sum is eligible for the Capital Gains tax rate, which is significantly lower than the Ordinary Income tax rate. You may also qualify for an indefinite tax deferral through the 1031 Like-Kind Exchange program. (Please note: For 1031 exchanges, arrangements must be made before the lease conversion agreement is written, so planning is important.) We recommend you discuss this with your tax advisor to find out how much you can save.
Is it true that I'm not getting as much money as I would by keeping the lease?
Not if the lease is canceled or the rent is reduced. You have a lease that is cancelable with 90 days notice - or less. Factors outside your control - such as competition, consolidation, and new technology - could make your site unnecessary or less valuable to the tenants. In that case, you'd be getting a lot less money than what appears to be left on the lease.
The best insurance against this is a lump sum of money you can reinvest in more secure assets - a lump sum that YOU control, and that can provide a greater financial opportunity than holding your lease.
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Do I still get my monthly lease check while the lease conversion is being processed?
Yes. You'll get your monthly lease payment up until the moment you receive our lump sum.
Will my tenant let me convert my lease with Unison?
In most cases, yes. You own the land or rooftop space that you rent to the tower company or the wireless carrier - they only own the equipment on that land. It's your right to do what's in your best interest with your property and the lease agreement.
In very few cases, your tenant has a "Right of First Refusal" provision in the lease. Sometimes these provisions apply to our transaction and sometimes they don't - we can advise you further once we have reviewed your lease. Contact us to learn more.
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If I convert my lease, do I still own the land where the site is located?
Yes. You only transfer easement and lease rights to us, not your property as a whole.
What happens if I have a mortgage?
You'll need a simple Non-Disturbance Agreement from your bank. This is a one page form releasing the rent payments on the site from the bank's security on the property. We've obtained agreements with hundreds of lenders and we'll be happy to help you with this as part of the conversion process.
If I convert my lease, can I sell my property later - and still keep the money?
Yes. The lease conversion won't prevent you from selling your property, and you keep all the money you receive from Unison.
What happens if the tenant damages my property after the lease conversion?
The tenant continues to have a legal obligation to repair damage to your property after we assume the lease, and we will work with you to make sure the tenants live up to all their obligations.
How long does the Unison lease conversion take?
Usually between 30 to 120 days, and sometimes even less than one month. You can find out more about the process on our What to Expect page.
Are there any factors that could delay the lease conversion process?
Any unresolved issues that could limit your control over the property rights may slow the process down until they are formally resolved. These can include:
- Divorce
- Estate issues
- Commercial liens
- Judgment liens
- Insufficient documentation to prove title or authority to act on behalf of the formal owner of the property
We'll work with you to address these situations as rapidly as possible, and make every effort to complete the lease conversion process within 30-120 days.
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Does Unison have the money to close my lease conversion?
Yes. We have arranged our financing in advance through world class financial institutions including UBS. There will be no funding issues to delay your lease conversion.
Do you charge for any of your consultations or services?
There is no charge for our consultation, and no obligation. Call us today to find out how easy it is to convert your unsecured lease into a secure lump sum investment opportunity.
