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Updated almost 6 years ago on . Most recent reply
How can I finance this billboard property with commercial space?
So, I found the opportunity to buy or rent a small patch of land on PCH in Huntington Beach that includes a billboard.
After doing some research, there's no way that the ad revenue the billboard would bring in wouldn't cover the mortgage.
I want to buy the property but don't have the money for a down payment.
What are some ways that I can purchase the property?
Or would it be better to rent and bring in money from the billboard that way? Would I even be able to while renting?
Thanks in advance for any input!
Most Popular Reply
The first thing I would have to point out is there is always a chance of losing money. So your statement that there's no way you can lose is false. But that's semantics. I get it. Seems like a hot opportunity with a high chance of success.
As for financing on a billboard only property, I believe you only have two options. Seller financing. (Best option.) Or a gambling private lender. Although lenders look at income, they're unlikely to give much value to billboard only income. As for seller financing, they would likely want a hefty down payment to compensate for the loss of monthly income. Unless you were going to pay them more than the billboard brings in, so all of the billboard income, plus paying them put of pocket.... I suppose I cannot predict whether a seller would entertain that... can you take home equity to get the down payment for seller financing?
As for renting... I have no idea how you would convince them to rent to you for less than the billboard income.. there's no upside for the seller... i.e. rent the property to you for 500 while you collect 1000 from the billboard... did you have some other idea of how that would work, which I am missing?