Insider receives a steady stream of emails from people who want to enter the outdoor business. Often they seek 100% financing for their first billboard purchase from Billboard Loans, our lending company. Most of them are in the real estate business and think there’s easier money to be made in outdoor advertising. Insider gives them the following advice:
- Buy your first location with your own money if you aren’t in the business. 100% financing is available for people with a proven track record but not for people without outdoor experience.
- Be very, very careful about brokers, especially for individual site sales. Some are legitimate. Some will play tricks like selling you outrageously priced locations in which they have an undisclosed ownership stake. Some will attempt to sell you locations for which they do not have a mandate.
- Billboards do best with local management. Your locations should be within an hour or two from your house.
- Billboards do not sell themselves. The people who thrive in the business aren’t afraid to make sales calls.
- Don’t underestimate how hard it will be to get permits.
- Keep your ground lease expense less than 20% of gross revenues. A bad lease never fixes itself. Landlords will fight you tooth and nail to keep their rent. About the only way to get our of a bad lease is to be prepared to take a board down.
Feel free to add your own advice below.
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