Whichever offering you choose, we believe that our innovative approach to lease prepayments will put more cash in your hands! This is because in addition to providing you with a large, lump-sum, up-front cash payment, RFS will also enable you to directly participate in future site rent. In other words, when you enter into a lease prepayment with RFS, you have not given up all of the future rent which may be generated by your site. RFS will share a portion of future site rent with you and furthermore allow you to retain 100% of any co-location rent which may be generated in the future. In most cases, this could more than double and sometimes even triple the amount of cash which you will ultimately receive. A representative RFS lease prepayment transaction might look like this:

The two basic transaction approaches offered by RFS are described below. In either case, the up-front prepayment amount might be materially enhanced by your participation in future rent:

1. Up-front, lump sum lease purchase. At present, this is the most common form of lease prepayment. You will immediately receive a large cash payment and, in return, RFS will receive site rent for an agreed upon period usually covering between 15-40 years (the “prepayment period”). The duration of the prepayment period is entirely at your option. Obviously, the prepayment amount will be greater for a longer prepayment period and somewhat less for a shorter prepayment period. After the expiration of the agreed upon prepayment period, the lease with the wireless carrier will revert back to you (assuming, of course, that the carrier has not decommissioned the site in the meantime). At that point you will receive all future site rent reflecting the impact of 15-40 years of escalators. If desired, you could, following the 15-40 year lease conversion period, execute another up-front, lump sum lease purchase.

   The most important point which we wish to stress is that we are in substance merely buying your site rent for a period of 15-40 years. That's it. The legal term for what we are buying is a "leasehold interest." We are not buying your site – that's yours. We are also not creating a new legal right to your property, such as an easement. We only want your existing rent. If you want to add another rent-paying tenant, that's your prerogative.

2. Non-recourse loan. From cash flow and economic perspectives, the non-recourse loan and up-front, lump sum lease purchase are essentially equivalent. In both cases, you receive a large, up-front check in return for the assignment of 15-40 years of site rent to us.

   However, in certain instances, a non-recourse loan may allow the landlord to defer the recognition of taxable income related to the lease prepayment. You should consult your tax advisor to determine the proper tax treatment of the transaction in light of the specific facts and circumstances. RFS is not able to provide tax advice relative to the proper treatment of any form of a lease prepayment transaction.

We mentioned that we are willing to customize our transaction to meet your specific needs.  Rather than receiving a single large check you might, for example, prefer a slightly smaller check, along with monthly payments. If you would like to know more, click here or call us, toll-free, at +1 (800) 601-1308.