How Lease Prepayments Work

Unlock Immediate Cash Flow from Your Lease

Ever wished you could fast-forward to get years of lease income today? Lease prepayments make that dream a reality. Think of it as “cashing out” on your lease while letting someone else handle the risks. Here’s a clear look at how it works and why it might be a game-changer for you.

1. What Exactly is a Lease Prepayment?

At its core, a lease prepayment is a financial agreement. You receive a big, upfront payment in exchange for assigning your lease income to an investor for a set number of years. The investor gets the rent for that period, and you get a lump sum now, no strings attached. Once the term ends, the lease—and its income—reverts back to you.

2. Why Would Someone Pay Upfront?

Curious why investors would take on the risk? The answer lies in diversification. Big investors often manage hundreds of cell site leases, which helps spread out their financial risk. If one site gets terminated, it’s just a small blip in their portfolio. Meanwhile, you get to skip the worry altogether and walk away with guaranteed cash.

3. The Upside for You

• Immediate Funds: Whether you need money for a big investment, paying down debt, or financing a dream project, lease prepayments give you the flexibility to act now.

• No Risk: The investor takes on the termination risk, so if the lease ends early, you’re still holding your payout.

• Reversion of Rights: At the end of the prepayment term, you regain full control of the lease—and often, at escalated rental rates.

4. How We Make it Happen

The process can seem technical, but with Aries Advisors, it’s seamless. Here’s our method:

• Step 1: We review your current lease, tenant details, and market value.

• Step 2: Using our network of vetted investors, we secure competitive offers tailored to your objectives.

• Step 3: We guide you through the evaluation and negotiation process until the deal closes—on terms you’re thrilled with.

5. Things to Keep in Mind

It’s worth noting that every lease is valued differently. Investors look at factors like your tenant’s credit rating, the site location, and the lease’s remaining term. This means your friend down the block might get a different payout even if their property seems similar. With Aries, we ensure you get the best possible value for your unique situation.

Lease prepayments are a smart way to harness the value of your lease when you need it most. And with Aries Advisors leading the charge, it’s a no-brainer.