REALIZING THE VALUE OF A RENT GUARANTEE

Financial Leverage:

• You can leverage the value of a guaranteed lease by taking it to a lending institution and borrowing against it, then using the guaranteed payments to pay back the loan.
• A guaranteed lease increases the value of your property by tens of thousands of dollars when calculating the capitalization rate.
• With top credit rating and name recognition, carriers lend credibility to your tenant portfolio, which ultimately enhances the quality of your investment due to better cap and default rates.
• When selling or refinancing a building, both buyers and lenders look for known names on the tenant roster, particularly with projects that may be in secondary markets and/or with only local tenants.
• The net profit of your cell site lease is considerably higher than other tenant leases, considering a carrier does not consume property management resources or exact operating expenses related to occupancy, such as tenant improvements or broker commissions, from your bottom line — costs than can deduct 20 to 30 percent from the lease value.
• Typically, small space tenants will only commit to a two to three-year lease, while carriers are often willing to offer a five to 10-year guarantee. And, because they rent space that no one else wants, cell site leases allow landlords to earn income they otherwise wouldn’t, and potentially achieve more than 100% tenancy.

Education: As the carrier’s authorized program administrator, Md7 has access to the most up-to-date information about the carrier’s network strategy and plans.  We seek to educate landlords on the changing marketplace that could threaten their cell site revenue stream and offer an opportunity to protect their income.

Security: A rent guarantee program provides financial security to landlords in a dynamically changing industry. Many current sites may not be suitable for a technically upgraded network or expansion. Locking in your site now guarantees it will stay a part of the network, regardless of its technical compatibility.

Trust: Md7 is a preferred real estate asset manager for top national wireless carriers and is authorized by your carrier to administer this program.  We have built our business and reputation upon solid relationships with both landlords and carriers.  Our excellent credentials validate our experience and expertise and are evidenced by letters of authorization, industry reports and testimonials from among the thousands of landlords we have helped to secure their cell site revenue.

Authority: Your carrier determines which landlords are invited to participate in the rent guarantee program, and has authorized Md7 to administer this program because of our expertise in real estate asset management and cell site leasing.  Md7 will oversee all aspects of your rent guarantee and guide you through the decision-making process efficiently and with the highest standard of care.