Long-term property acquisition and payment method

Abstract

Methods for the long-term leasing by a company of a plurality of properties, two or more of which are separately owned by identifying each property to be leased; and tendering to each property owner an offer to lease each property for a term of years with a lump sum payment as consideration.

Description

CROSS-REFERENCE TO RELATED APPLICATION[0001]This application is related to and claims priority benefit under 35 U.S.C. §119(e) of U.S. Provisional Patent Application No. 60 / 429,667 filed Nov. 27, 2002, the disclosure of which is hereby incorporated herein by reference.FIELD OF THE INVENTION[0002]The present invention relates generally to acquiring the right to use all or portion of parcels of real property for long periods of time. In particular, the present invention relates to a method for implementing a site acquisition strategy and financing approach for establishing and maintaining wireless communications networks residing at cell tower sites.BACKGROUND OF THE INVENTION[0003]Until now, companies engaged in network build-outs for wireless communications facilities follow a similar if not identical method for acquiring the use of land necessary to establish their networks. Site selections are determined by dropped call rates as well as the quality of reception. We have all seen t...

AI Technical Summary

Benefits of technology

[0008]This need is met by the present invention. The present invention provides a system and method for long-term acquisitions and financing of real estate that it is substantially more beneficial for a an entity requiring property rights to many parcels of land and is contrary to the current methods presently in widespread use. Rather than seek the usual and customary commercial or ground lease type of agreement for the long-term use of a property, this method actively promotes, as an overriding discipline and standard business practice, all cash, or its equivalent, upfront, or, in the alternative, short-term lump-sum payments for the long-term right to use a property, preferably a parcel of land. The term “Lump Sum” as used through out this application is considered to include any method of payment (consideration) to a landowner that decreases the number of and duration of payments needed to acquire the right to use a parcel of land.

[0013]Therefore, according to a preferred embodiment of the present invention, the method of the invention further includes the steps of determining the amount of debt encumbering each property and calculating for each encumbered property a lump sum payment (s) in a subjective range with it's center approximately near to the amount of debt encumbering the property. Presenting the property owner with a menu of various acquisition options that include the Lump Sum Payment option along with or independent of the industry standard typical lease arrangements facilitates the offering method according to this embodiment.

[0015]The invention recognizes and contemplates that not every property owner will accept a lump sum payment for a long-term property lease. However if lump sum offers are implemented as a standard business practice on a national scale, preferably with step by step standard guidelines presented within a menu of options, the method of the present invention will be successful with many locations, both new and existing. Even if only a very small percentage of landowners accept this payment method, the result is an increase in profitability Operating cash flow is increased and long-term payment liability is reduced.

Problems solved by technology

The prior art methods fail to take into account the fundamental differences between a private property owner and a property owner who is engaged in commercial leasing for gain.

By failing to appreciate this, the companies presently engaged have consistently used the wrong approach and thusly overpaid for the right to build cell towers on properties of interest.

Moreover, the prior art has not considered that there are other financial benefits that although not directly related to communications networks but more related to profits derived from real estate ownership and development This new method seeks to capitalize on any such other financial benefits during the analysis and negotiation phase of each prospective acquisition.