Wireless Capital Partners – Potential Woes
In recent months, we have received numerous inquiries from cell site lease holders who have entered into letters of intent with Wireless Capital Partners to sell their leases. These owners have contacted us because they have had difficulty getting Wireless Capital Partners to close on the purchases in a timely manner. To be fair to WCP, in some cases, the landowners were given a non-refundable fee to “hold” the closing for up to 3 more months. However in other cases, these owners could not reach their agent at Wireless Capital Partners. These owners wanted to see whether there was anyone else that would close quicker.
On September 4, we were informed by a Wireless Capital Partners agent that the vast majority of the agents were let go. They were informed on conference calls that they would no longer be needed. Allegedly, there are some upper managers still left. Other associates in the industry have confirmed that they have received a number of calls from prior WCP agents looking for new employment last evening. This is after Wireless Capital Partner released a large percentage of their sales force just a few months ago. At that point the suggestion was that the minority of their sales force was getting the majority of their deals done- so they let go the majority that weren’t getting deals done.
This doesn’t bode well for Wireless Capital Partners. They confirmed previously that they were having some funding issues to us, but that those issues would soon be resolved. In the last few months, they haven’t been. They still might be resolved, but prudent landowners should consider how long they can wait for closing on selling their lease. We suggest that landowners who are in negotiations with a Wireless Capital Partners representative for purchase of a lease discuss how and when your deal will be funded. Perhaps ask that the funds be placed in escrow. If you already have a deal that hasn’t been funded, please contact us regarding getting other offers from companies that have not had funding issues. Make sure to read your letter of intent with WCP, you may have legal restrictions from getting other offers during the term of the letter of intent. If so, you might contact WCP and ask them to either honor their agreement with you or release you from it.
