FAQs - Renewa

Q: What would I do with a large lump sum?

Many of the landowners who sell to Renewa take advantage of the current long-term capital gains rates. They pay 15%-20% of the lump sum in taxes and reinvest the remainder into an asset class that outpaces inflation. Others use the lump sum to purchase more land, a second home or commercial property through a 1031 tax-free exchange. Both options can achieve a potential greater return than simply holding on to your annual lease payments.

Q: Couldn’t I make more over the term of my lease?

On paper, Renewa’s offer looks to be less than what you could make over the term of your lease by holding on to your annual payments. However, your lease gives the operator the right to shut down the project at any time. Another important factor to consider, inflation is currently at a 40-year high. Royalty escalation rates in renewable energy ground leases typically do not outpace the expected rate of inflation. Over the life of the lease, taxes and inflation can reduce the purchasing power of your rental payments by over 50%. See other reasons to sell

Q: How long does it take?

Renewa can present a firm offer within five business days of reviewing the executed ground lease and most recent rent statement. Renewa can close within 30-45 days of reaching an agreement. See the whole process