Payments to landowner

outdoor billboard investment forum
1

Hi,

What are your thoughts on how often payments should be sent to land owners?

If monthly - it maybe a little too much overhead to calc and send them out monthly.
If annually - it maybe too big of the hit in dollars once a year on my side.

So maybe quarterly or two times per year makes more sense. What do you think?

Thank you,

Mark

2

I have always preferred monthly, as it is the easiest from a planning perspective. If you are small, you will always forget to save up to make the payment once per year or quarter. If you are large, it will screw up your statements and budgets, and make you lose track of your actual groundrent obligations.

3

I see this is an older topic but is pretty close to my question, so -

Is there anything I should be concerned about if a landowner is insisting on a lump sum annual payment for ground rent up front? I sent out a letter closely modeled on the one included with the Boot Camp files, and the landowner is claiming this represents an offer and I should stick to it, implying that anything else is dishonest. The letter I sent gives a “per year” amount but doesn’t explicitly mention any kind of payment schedule, and others have not read it the same way. The same landowner has given me a list of demanded changes to the lease agreement. Most of the demands are actually acceptable, but I am concerned about the general attitude of black and white, my way or the highway. It could be a profitable sign even under his aggressive terms, and I don’t want to miss out on a good deal just because dealing with this guy is unpleasant - but, setting feelings aside, is there anything concerning about his approach, practically speaking? Other items: He also wants me to double my insurance coverage for his sign. And even though I tried to explain my process to him (why I don’t know the exact sign I’ll build until I’ve had access to the property and discussed any easements or other access agreements), he really doesn’t listen and seems to feel I’m witholding information by not telling him everything up front. Should I be worried?