I found an old 30 sheet billboard that
was used as an on premise sign by a power
company. It is made out of steel i- beams.
I have talked with the new property owner
and he said he will sell it and do a ground
lease. He said to make an offer but i am
not sure how low to offer to buy it. I was thinking to start at $1000. What would you
offer?
Could you obtain a billboard permit or is it already permitted? And probably around $1000, I always ballpark 5x revenue as figure.
I talked with the state and was told
I need to have a ground lease signed with
the property owner.then the state will
check and see if it can be permitted to use.
I haven’t heard back from the property owner on what he wants to do.
Figure out what the ads rent for in that area. Discount that amount by 30%, and multiply the result by 20%, and that’s what you might offer the landowner as ground rent. Make sure that your groundlease does not take effect until you buy the sign, and give yourself plenty of outs in due diligence. Then get a 60 day due diligence period to see if it’s legal, and to see if you can rent the ad space. If everything comes together, then buy it.
Make sure to try and secure a 10-30 year lease.