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Paul Stout
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
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262
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Billboard Investing Lease Structure Static and Digital

Paul Stout
  • Mobile Home Park Investor / Licensed Indiana Real Estate Broker
  • Chicago Area, IL
Posted Apr 25 2017, 10:43

I have two possible opportunities regarding signage that I would like to explore.  I currently invest in mobile home parks, vacant land, notes, and self storage.  I have tried researching billboard investing but haven't found much information.  I did find Dave Reynolds website.  I have found information stating that a typical wood billboard (not very interesting to me) costs about $25k and a metal (more likely what I would use) billboard would cost about $65k.   I'm hoping there are some billboard investors who can share some information with me.  I reached out to a few members who have billboards and marketing listed on their profiles but haven't gotten any responses yet. 

Deal #1: Vacant land for sale with 1500 feet of frontage on a major highway.

Questions:

What information do I need to gather to evaluate this deal?

Once I have the information how do I evaluate the deal?

What are typical construction costs of different types of static billboards?

What do I need to know about performing due diligence when making sure the local government will allow me to install billboards?

What are the typical maintenance and operating costs for different types of static billboards?

How do I determine rental rates for billboards?

How do I find the billboard tenants?

In the area I have seen static billboards that are double sided and two billboards high.  Are there disadvantages to going two high over one high?

Deal #2:  Business owner wants an electronic sign.  Municipality will allow a 200 square foot digital sign.  This is a very high traffic area. There are multiple businesses in the strip mall where the pole with a static sign is currently installed.  The current static sign has small  business names for some but not all of the businesses.  The anchor tenant has a large sign at the top of the pole.  The business owner does not want to pay for the sign but would be willing to pay monthly rent for a time slot on a digital sign.  There are many businesses in the back of the strip mall and around the corners on side streets.  The owner of the strip mall has agreed to rent me the spot on the pole just under the anchor tenants static sign. 

Questions:

How do you structure leases for digital sign time slots?

How many businesses can you efficiently rent a double sided digital sign to and how do you structure the time slots?

What are typical costs involved for buying and installing the sign?

What types of signs are out there and what are the pros/cons?

What would the typical cost be for setting up the website that allows the graphics to be loaded onto the sign?

Are there website templates or companies that specialize in building these websites?

Do the businesses load their own graphics etc.?

What else do I need to know to evaluate this deal?

What are the typical maintenance and operating costs of these signs?

Please help if you can. PM me if you are willing to discuss this on the phone or through email as that may be more efficient.  Thank you.

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