Billboard Investing Strategies

[Michael Rashfal]

Hi Everyone,

I recently came across an REO listing selling a double-sided steel-poled billboard making $3,500 per year (leased) with a small plot of land, in the low six figures.

Am I missing something? It seems that the billboard cash flow is very low compared to the price they want.

Setting aside the potential uses for the land (which aren’t much), would any of you pay this much for the billboard? If so, what strategies are out there to make this price worth it. Do you focus on investing in leased billboards, unleased billboards, or on billboard permits?

Thanks in advance.

Michael

[Joel Owens]

I do not invest in billboards. There are the wrapped kind, the flip kind showing multiple advertisers, and the LED kind. LED is great because you can put lot's of businesses on there and the minute they do not pay you can inactivate them and replace with someone else.

The billboard you have to look at the lease. If you are stuck with a low fee contract for a long period of time that can be a negative especially if it hinders redevelopment and site layout of the land.

This property doesn't sound that great from what you are initially saying. If you have a lot of non-producing income land that cannot be changed to income producing and high taxes then might be a loser. Just because something is a foreclosure does not make it a deal. Often they are overpriced bad deals and you have to move on from the property or wait until the bank gets motivated which can be years sometimes if they are local,regional, or national in nature.