I just bought your home study course and I went through everything, but I have a couple questions about “flipping” a location instead of building and managing it.
What is the process to transfer a lease (signed by landowner) and a permit to a big company?
I read in the course there is paperwork that needs to be done to sell the lease and permit, but I’m not sure if I have to fill out a new lease or not.
Also - if I am only interested in flipping a location - do I have to submit engineer drawings or estimates? Or should I include them and tell them I am just selling this location?
Thank you very much!
Just checking back in.
I found out that you need an assignment document for the permit that the state provides. As far as the ground lease, I am thinking it would need to be retyped and signed by both parties again?
I just read that you can get a construction drawings of a monopole from the manufacturers - in order to submit it for the permit process. Frank, for the site plan - did you usually draw the site location yourself (ie. distances from front and sides) or did you pay an engineer to do that?
If your intention is to just flip the location - do you need to notify anyone who is processing the permit application or is it best to not mention it?
One final question - for the state of Delaware - in my county they ask for a copy of the most recently approved and executed Record Plan - what is that?
Yes, you definitely need the state permit transfer form. No, you don’t have to re-type the lease and have it signed by all parties. Instead, you’ll need what is called an “Assignment of Lease” document that transfers your rights under the lease to the new owner. You normally always draw the site plan yourself – except in the rare case where the city requires something more professional. I have only had to include a surveyor a couple times in hundreds of leases, and it was in cases where there was confusion on where the actual highway right-of-way extended to.
When you flip a lease, you normally don’t tell the landowner your intentions. You go to them after the fact and tell them that there is the potential of a “win/win” with their location, in that a bigger company wants to take over the lease and build a more expensive structure than you can afford to build, and will be able to rent it for more money and be more financially strong. Normally, most owners would much rather have a large company for a tenant than a tiny one. That’s not to say that all owners are happy with the concept – some feel they’ve been cheated. But I’ve never had a serious problem over it. Make sure that your lease contains the correct language in Delaware to be assignable, however. Tell the owner what you’re doing before you sign the final papers to sell it, just in case he is so upset that you decide it it just better to keep it or drop it.
I’m sorry to say that I do not have any knowledge of the sign laws in Delaware. My guess is that a “record plan” is like a legal description of the real estate itself.
I checked with the county land use department and they said a Record Plan was a “micro film number assigned to each parcel to view online.” I guess it’s just their system for keeping track of land.
My next question for you - the department requires that the contractor be registered in the state of Delaware and they require I select a contractor that will complete the installation work for the monopole.
When your intention is to flip the location, will the big company use the contractor that I selected to be granted a permit or will they file new paperwork with a new contractor?
This is the only thing holding me back from my 1st deal - it seems these requirements are only required in Delaware? Or is this normal when getting a permit?
Thanks as always,
A larger company will probably use a different contractor – but if you need to put a name in a blank in order to get a permit, then find somebody and then leave it up to the company to decide rather to go forward with that contractor or not. Normally, changing the contractor once the permit has already been issued, is not a big deal. Most cities look upon this as a revenue creator – it forces sign fabricators to get a license in that state – and they don’t really care who you use, as long as they get paid in the form of a license.
These are pretty normal issues in any state – not specific to Delaware.
The Land Use Dept told me that the contractor applies for the permit and not myself - would that mean I have to pay the contractor just for that?
I’m confused - so if I have the construction plans, site plans, traffic count, and state approval - do I have to hand them over to the contractor and hope he does a good job filling out the application?
They did send me a change of contractor file - they need a letter from the owner saying its ok to change contractors and a letter from the previous contractor stating termination of work. If I am flipping the location this is obviously something the new big company will do on their own, right?