I noticed that on the permit application It had spaces for the sign installer and the licensee #. But since I plan on flipping the lease/permit what should I put in those spaces?
Put the name of a licensed installer, as they have requested. It’s none of their business if you flip it or not, and you can locate the installer and tell him you’re building the unit and he’s the guy to do it, and then change your mind and flip it after the permit has been received. It happens all the time. Every sign operator flips leases now and then – it’s nothing to be concerned about. If needed, you could pay the installer a small fee if they begin to balk if you do it repeatedly. It costs them nothing to allow you to use their name and license number.
Thanks Frank, by the way I’ve noticed you haven’t done your conference hr the past 2 weeks. Did you decide not to do it anymore?
No, I was out of town the first week and sick the second. I’ll be on there this coming week. Somebody was supposed to go on and tell anyone on the line to email their questions to me. Did they do that?
No they didn’t.
I’m sorry. I’ll be there next week. In the interim, feel free to post any questions right here on the form and I’ll answer them as fast as they come in.
Ok, I feel like I have found a pretty good location, the only problem is there aren’t to many other signs around to compare rates with. How should I go about finding this information, and what percentage should I offer the land owner?
Typical ground rent is 15% to 20% of the net cash receipts (gross revenue minus bad debt).
You don’t really have a choice to determine ad rents without doing comps of the existing signs. If you can only find a few – that is better than none. Get prices all over the general market, not just the road in question, to make sure that you have a complete handle on values.
The only other option is to “pre-sell” the advertising space, but it’s very hard to pre-sell billboards unless the location is spectacular.
What do you mean when you say bad debts?
Pay someone who is an installer to use his/her name and license in the permit application.