MD7 WORKS WITH ALL TYPES OF LANDLORDS

Non-profit institutions, for example, may handle cash payments differently than other organizations due to their tax-free status.

Cell tower lease assignments are especially advantageous to religious and other non-profit institutions because of their tax-exempt status. Md7 provides up-front cash to these institutions through its lease prepayment programs. The cash is tax free to the institutions and Md7 assumes the risk of early termination of the cell site lease.

Government entities have a fiduciary responsibility to manage at-risk income streams differently from guaranteed monies.

Due to their significant property holdings, government entities such as municipalities, utilities, school districts and transit authorities, frequently receive monthly income from cell site leases. While the contracts are written for 10- to 20-year terms, cell tower site leases are often devalued due to the early termination clauses found in most contracts. This poses a financial challenge for government planners. They are obligated to operate their budgets in a fiscally prudent manner, but the cell site income cannot be viewed as risk free despite the long-term contracts. Further, termination clauses can inhibit their ability to leverage these leases with financial institutions. Md7 removes the risk by accepting an assignment of rent in exchange for providing an up-front cash payment, which secures this cell site income. This affords the landlord numerous financial options such as the opportunity to diversify its investment portfolio, service debt, make capital improvements or fund priority budget items. In short, a secured lease prepayment enables the public-sector landlord to immediately realize the significant value of its cell site lease portfolio and finance critical initiatives.

Businesses looking for expansion loans may find banks unwilling to lend funds against a cell site lease with an early termination clause.

Contracts are fundamental business assets. Most businesses that hold cell site leases understand that their contract with the wireless carrier likely grants the carrier the right to an early termination that allows the carrier to respond to industry volatility. However, financial institutions are often unwilling to loan businesses funds against cell site income that is not guaranteed. Md7 remedies the situation by providing up-front cash to landlords and by accepting the risk of early termination.

Individuals may find they need cash quickly, and want a fast and simple funding process.

Individual landlords of cell site leases are often unaware of the early termination clauses that exist in most contracts with wireless carriers. The individual landlord has often structured his or her financial plan with the assumption that the monthly income from a cell site lease will continue for all 10, 15, or 20 years of the contract. That’s a risky assumption. With major changes in wireless technology, such as density requirements and transmitter sizes, wireless companies are no longer locked into needing the tallest building or highest hill in an area. Site termination has become an increased risk. Through lease prepayments, Md7 provides an up-front cash payment to you while assuming the risk of lease cancellation.