All Forum Posts by: Blake Copeland

Go to www.outdoorbillboard.com for a whole bunch of information on this topic. I know a bit about this business.

First off, there are a handful of companies that completely DOMINATE the markets all over the country which are Lamar, Clear Channell, Viacom, CBS, and a couple more companies probably control close to 90% of the supply of boards.

The biggest thing you need to know is that digital billboards make a RIDICULOUS amount of money. Example friend of a friend constructed a full size digital board down in Atlanta ((just picture a really gigantic plasma TV over 40 feet accross)) they cost a few hundred thousand dollars as well, but what's mind boggling is the revenue they can produce.

Each ad displayed on a digital board is called a "Loop" you can fit anywhere from 6 to 8 loops on one screen.... here's the crazy part though.... depending on traffic counts you can charge big advertisers like Coca Cola, Hilton etc as much as $5,000 to $6,000 per ad per month. Multiply this by fitting 7 companies per month X the ad price and you're talking some big money.

The hardest part is getting permits approved iin high traffic areas, as most of them are already taken by large outdoor advertising companies. Obviously the further out you get into rural areas your ad revenue per board drops but youd be banking on the development of the city to boost the traffic counts over time and having your ad revenue increase as well... similar to land supply constraints in real estate markets when rents rise higher.

Bottom line, the most profitable arena in this game for the next 20 years is to get into digital boards and tri-vision boards. Less than 1% of the existing supply of billboards are digital... its estimated over 20 boards a day are converted to digital, one of them could be yours..??

Thanks for the help! Much appreciated.

Hey Ryan,

I've never had to deal with this but have heard stories of others marketing their assignment contracts and having the buyer go around their back and deal directly with the seller and cut the wholesaler out.

I know there is a way to cloud title to prevent or at least delay the deal somehow, but how exactly is this done? What do I need to file and where? I'm in Texas too so that should help. Thanks in advance.

The only issue I see here is if your end buyer has traditional financing to cash you out and cash the seller holding the mortgage out.

If they come in with mortgage money there may be title seasoning issues and the bank may not lend to your end buyer until the property has been owned by you for at least 90 days. I know this is frequently a roadblock with wholesaling REO transactions depending how you fund them.

Other than the seasoning issues with your end buyers mortgage loans, I think you can buy and sell Sub2's all day long. You can even just leave the original loan in the sellers name and then deed the property over to the end buyer for an assignment fee.

Example existing loan is 100k... seller is behind 3k on mortgage payments... House is worth 140k.

You work out a Sub2 deal and get them caught up on their payments by selling to a buyer for 112k. The buyer actually only has to come to the table with 12k plus closing costs though.

4k in back payments, the remaining 8k can be distributed between yourself and the seller, and the deed can be quitclaimed ot the end buyer and they keep maing payments on the loan and only invested 12k to get into a $28,000 equity position.

Ask your title company to refer you to a list company that tracks purchase and sales transactions for non owner occupant purchases in the last 6 months.

I have a friend who operates a dual purpose real estate business. He buys raw land, subdivides it into lots and exchanges these cash gains into wholesale priced small multi family properties and office properties for cashflow. A similar model could exist for a high volume wholesale business that re-invests their cash profits into income producing properties that is aquired at bargain prices as well.

The immediate boost in cashflow on an investment property comes form a combo of buying low, using leverage, and getting favorable financing terms and locking in strong leases on your units. I think it is possible to have a business that generates cash from quick turning properties and reinvesting that cash into wholesale priced income property to hold long term while using leverage to do so. That's how I'm building my business anyway.

Anothe rbenefit to being a wholesaler is that you basically HAVE to become a great marketer and a great negotiator. Your entire business depends on it, because if you are not great at those things you won't be able to bring bargain deals to the table for your buyer's. So, of course the benefit of that is that you already know how to hunt down killer deals, then if you have resources in place to hold half of your wholesale inventory at low prices, you're going to do pretty well AND have cash reserves in the long run.

2 words....... Foreclosure Auctions.

Think about it. Most counties require investors to have cash at auctions within 48 hours or so. So, if they have cash and are bidding on deals, chances are they will have cash to buy your deals as well :) Pete the Ninja taught me that one. (that's Preston Ely's partner)

Just curious how many mailers people are doing per month on probates?? I send out direct mail to at least 50 estates per week. Trying to figure out how to send out more in less time though, any suggesstions?