How do I find out the groundrent from LAMAR/CBS?

outdoor billboard investment forum
1

Hi all,
I’m new to this site and new to billboard business. I’m interested in buying a vacant commercial lot in Detroit with one sided Lamar billboard on the property. I found out the property taxes to be $5,000 (yr). How can I find out what kind of ground rent does the current land owner gets from this billboard. I can’t contact the current owner becuase its a foreclosed auctioned property. I called local Lamar rep and left him a message with the property address but never heard from him.
I have to act quickly to get this property but I want to make sure that I would make money after paying $5k taxes.
Any advise on how can I find out the ground rent for this property or can anyone give me a ball park figure for average monthly ground rent in Detroit. The Billboard is facing a major freeway.

Thank you in advance for your assistance.

Regards,
BB

2

bb40,

Try locating the previous owner. I would start checking records at the local courthouse where deed info is kept to find out who was the last owner of the property. See if they started the lease.

3

Those are both excellent ideas. You might also see if you can find out the advertising rent on a similar sign, multiply by 13 (if it’s sold per 4 week, and 12 if it is sold by the month) and then multiply by 20%. This is very rough, but might give you a ballpark idea of the ground rent amount.