MB 249: Increase Your NOI Through Cell Tower Investing – With Hugh Odom

The most successful real estate investors find creative ways to increase their NOI either by adding amenities for residents or reducing expenses. But there is a new opportunity for property owners that you may not be aware of. What if you could earn more money by leasing out a portion of your building for a 5G cell phone tower?

Hugh Odom is the Founder and President of Vertical Consultants, a telecom consulting firm that has advised major corporations such as Walmart, McDonald’s and Disney, as well as government institutions like the Department of Veterans Affairs, the New York Housing Authority and the United States Postal Service. Hugh served as an attorney for AT&T for 11-plus years, and today, he leverages his expertise in the telecom industry to help real estate investors earn additional income through cell tower leases.

On this episode of Apartment Building Investing, Hugh joins cohost Garrett Lynch and I to explain why the cell tower industry is like oil 100 years ago, discussing what is driving the need for more cell towers and how lucrative a cell tower lease can be for investors. Hugh shares the do’s and don’ts of negotiating a cell tower lease, describing how it differs from a real estate transaction and what Hugh’s team does to help property owners with the process. Listen in to understand why cell tower investing is a safe bet for the long term and learn how YOU can take advantage of the opportunity to be a cell tower landlord!

Key Takeaways

Why the cell tower industry is like oil 100 years ago

• Long-term agreements to lease land from property owners
• Cell companies reach out if property in right location

What is driving the need for more cell towers

• 5G technology requires additional infrastructure
• Densification makes service faster, more instantaneous
• From 400K to 1.5M cell sites by 2025

The do’s and don’ts of negotiating a cell tower lease

• Don’t treat as real estate transaction (e.g.: market rate)
• Do determine value provider will get from space

How lucrative a cell tower lease agreement can be for investors

• Typically increases value of property by $1M
• Renegotiate contract as provider’s revenue from site goes up

How Vertical Consultants helps property owners

• Level playing field (understand value you’re offering)
• Source leases for large commercial property owners

How to take advantage of this opportunity in cell towers

• Buy properties with existing towers or rights to cell towers
• Bring experts in to renegotiate lease

How 5G towers differ visually from traditional cell towers

• Traditional tower = 150 feet tall, up to 5K ft²
• Traditional rooftop antenna up to 500 ft²
• 5G tower = 50 ft² with small antenna box

The opportunity to become an operator of cell towers

• Pay property owners in dead spots for right to lease
• Buy for long-term cashflow or flip

Why cell tower investing is a safe bet for the long term

• Similar to highway system (infrastructure, not technology)
• Change out equipment as tech improves

Who Hugh serves through Vertical Consultants

• Property owners with existing agreements
• Owners who’ve been approached by cell company
• Hotels, self-storage and shopping center developers

Connect with Hugh Odom

Vertical Consultants

Resources

Join the Nighthawk Equity Investor Club

Learn More About Michael’s Mentoring Program

American Tower

Crown Castle

SBA Communications

Podcast Show Notes 

Michael’s Website

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Michael on YouTube

Apartment Investor Network Facebook Group