Frequently Asked Questions
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.
Am I allowed to share the information from our current ground lease?
In some cases, the ground lease contains a confidentiality provision. However, most confidentiality provisions allow you to share the information with a potential purchaser. If you are interested in Renewa’s offer but are concerned about potential confidentiality issues, Renewa will work with you and your current operator to help alleviate any concerns.
Am I allowed to sell the wind rights associated with our property?
Renewa is not interested in purchasing the wind rights associated with your property and is not offering to sever your wind rights. Renewa works with renewable operators to ensure your interests are transferred properly.
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
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
DISCLAIMER The content of this website is exclusively for informational and discussion purposes. It is not, and may not be relied on in any manner as, legal, business, tax, regulatory, or investment advice. Notwithstanding anything on this website to the contrary, it does not constitute an offer to purchase or a solicitation of an offer to sell, wind or solar rent, royalty, payment or lease rights, including any interest in any monetization opportunity offered by Renewa, AND ANY SUCH OFFER, AGREEMENT OR OBLIGATION OF RENEWA IS STRICTLY CONDITIONED ON SUBJECT TO THE EXECUTION OF DEFINITIVE AGREEMENTS BETWEEN RENEWA AND THE RECIPIENT AND COMPLETION BY RENEWA OF DILIGENCE SATISFACTORY TO RENEWA. You agree that Renewa and its partners, members, employees, officers, directors, agents, and representatives shall not have any liability for any misstatement or omission of fact or any opinion expressed herein or in any communications except in and as provided under such definitive agreements. Each prospective seller should consult its own attorney, business, tax and other advisers as to legal, business, tax, regulatory, and investment advice and related matters and should make their own investigation regarding the information contained herein. Renewa reserves the right to negotiate with and enter into definitive agreements with one or more prospective parties at any time without prior notice to the recipient or any other prospective parties.