Sure, everyone has a billboard face with poor visibility. Maybe you built the sign for the great visibility of the other side, or maybe it was a great read at one time, but there is at least one bad advertising face in every portfolio. So what do you do to maximize that one clunker?
Here are some ideas:
· If the problem is blockage – try to fix it. As long as a tree is on private property, you have the right to ask the neighbor if you can trim or remove it. It never hurts to ask. You may offer them cash or some other concession if they will allow you to do so. Even if a tree is on highway right-of-way, it still never hurts to ask. You’d be amazed how many trees and other vegetation obstructions have been removed legally by just asking the proper authority. If the problem is blockage from a man-made obstacle, such as a flag or someone’s business sign – again, it’s the right step to ask if the obstruction can be moved or removed. One of my best billboard deals of all time was buying a vacant sign in downtown Dallas from a big company for next to nothing, because it had a terrible blockage from a “parking” sign right in the middle of it. Apparently, they had never bothered to ask the “parking” sign owner if it could be moved. I immediately got the green light from the owner, without a penny of compensation, just to be a good neighbor. I lowered the sign to where it did not block the billboard at all, yet did not damage to the effectiveness of the “parking” sign either.
· If the problem is the angle of the billboard face to the highway – try to increase it. Many a billboard has gone from a dog sign to a winner by significantly increasing the angle of the “V” – the angle of the sign face in relation to the road. For example, a back-to-back sign , depending on the orientation of the highway, be virtually unreadable. However, with a sharp angle aimed at the traffic, that same read takes on a new life. If the law allows you to, it is possible to increase the V of the sign without a lot of construction – but be sure it’s legal to do so. In some markets, the ordinance allows such a trick since you are not increasing the size, height, or lighting of the ad face, just the angle (which is normally not even in the ordinance). If you have not built the sign yet, then put a big V on it from day one.
· If the problem is the height of the billboard face over an obstruction that cannot be changed, such as a roof line of a neighboring building, see if you can build a smaller sign or a taller sign. Many times, a billboard owner does not realize that he can actually build the sign higher than he thinks. Often, this is due to a lack of understanding as to where the height of the sign is measured from. Sometimes, you are given some extra feet in height if the sign begins on land below the grade of the highway. Another thing to check is if there is a different configuration that eliminates the blockage. For example, instead of a 14’ x 48’, maybe you should build a 10’6” x 36’? You’ll pick up almost 4’ of additional clearance. A clearly visible 10’6” x 36’ is worth a whole lot more money than a badly blocked 14’ x 48’.
· If there is no way to fix the visibility issue, then try and improve what you’ve got to sell. Paint the empty face day-glow yellow and put your phone number in huge black letters, the full height of the sign face. Or put some “rhinestones” on it so that the face glimmers in the light. If someone should rent the sign, then make sure their ad copy if only a few HUGE words, and paint it in obnoxious colors to get your attention.
· Use this sign for public service messages or put in a barter program. Sometimes, when people are not paying cash, they are more tolerant of a bad sign than others.
As I’ve said many times, I’ve never met a sign I couldn’t rent. Even if your sign is the worst one in the world there is, at some price, someone who will rent it. At least demand is always strong, even when your visibility isn’t. Never give up, and often something goes your way. Remember the ugly duckling that becomes a swan. Well, you may not get a swan, but you could get a pricey chicken. You just don’t want a turkey!
Monday, May 16, 2011
Monday, May 2, 2011
Find a Billboard Location in Hours
It is very intimidating to look for your first billboard location. You feel like you don’t know what you are doing, and that you can’t possibly compete with the big companies. There is a simple exercise to cure you of these feelings, and start you on the road to building your own billboard company.
When Sam Walton built Walmart, he started outside of the big cities, and later worked his way in. That way he didn’t face as stiff of competition when he got started. You need to follow his example. You need to get out of the big city and into the countryside to find your first billboard locations.
So how do you begin? Take a map of the city you are located in (assuming you live in a city; if not, then get a map of the nearest big city), and take a highlighter and color the highways leading in and out of town. Now, pick the general direction of growth in that city (north, south, etc.), defined as where there is the majority of new construction, home development, etc.). Your next step is to drive out one of the highways that run in that direction, and keep going until you see the billboards start to die out. You have now reached the limits of the universe for billboards, which makes for fertile territory for you.
You need to find the first legal billboard location available in this new territory – the first location since the string of billboards dies out. Why did the signs die out? Probably because there was not a whole lot of demand for the ad faces, and the big companies figure if they ever want a new location, there should be plenty available. However, this is a very good place to start your billboard career.
How can you make a billboard like this work when the big companies don’t want it. Several reasons:
*
You have far less overhead (like zero)
*
You will rent the advertising space for less, since you have no corporate rules to worry about.
*
You can build the sign for less if you really work it.
*
You will put in 150% effort because it is your first sign
The safest way to approach a sign like this is to get the practice of obtaining a groundlease and permit, and then try and pre-lease the advertising space. That way, if you are unsuccessful in finding advertisers, you can just terminate the lease and not have to build it. Or you can try and sell it to another company (it won’t bring a lot, so don’t get too high expectations). Make sure that your groundlease allows you to cancel the lease in the event that you can’t rent the advertising space – just in case.
Once you have gained your confidence and learned from a couple of these type of billboards, you will be much more confident to attack the ones closer in to the city center.
So if you are having trouble getting started in finding billboard locations, go to the far reaches of the metroplex, and you can find plenty of product to start you on your way. Even if you don’t build that first sign, you will learn several lessons along the way.
If the thought of earning money in the billboard business excites you, you are in luck! We are holding a Billboard Bootcamp in St. Louis, Missouri, August 13th and 14th. For more information, contact Frank Rolfe at (573) 535- 0206 or at frank.rolfe@gmail.com.
When Sam Walton built Walmart, he started outside of the big cities, and later worked his way in. That way he didn’t face as stiff of competition when he got started. You need to follow his example. You need to get out of the big city and into the countryside to find your first billboard locations.
So how do you begin? Take a map of the city you are located in (assuming you live in a city; if not, then get a map of the nearest big city), and take a highlighter and color the highways leading in and out of town. Now, pick the general direction of growth in that city (north, south, etc.), defined as where there is the majority of new construction, home development, etc.). Your next step is to drive out one of the highways that run in that direction, and keep going until you see the billboards start to die out. You have now reached the limits of the universe for billboards, which makes for fertile territory for you.
You need to find the first legal billboard location available in this new territory – the first location since the string of billboards dies out. Why did the signs die out? Probably because there was not a whole lot of demand for the ad faces, and the big companies figure if they ever want a new location, there should be plenty available. However, this is a very good place to start your billboard career.
How can you make a billboard like this work when the big companies don’t want it. Several reasons:
*
You have far less overhead (like zero)
*
You will rent the advertising space for less, since you have no corporate rules to worry about.
*
You can build the sign for less if you really work it.
*
You will put in 150% effort because it is your first sign
The safest way to approach a sign like this is to get the practice of obtaining a groundlease and permit, and then try and pre-lease the advertising space. That way, if you are unsuccessful in finding advertisers, you can just terminate the lease and not have to build it. Or you can try and sell it to another company (it won’t bring a lot, so don’t get too high expectations). Make sure that your groundlease allows you to cancel the lease in the event that you can’t rent the advertising space – just in case.
Once you have gained your confidence and learned from a couple of these type of billboards, you will be much more confident to attack the ones closer in to the city center.
So if you are having trouble getting started in finding billboard locations, go to the far reaches of the metroplex, and you can find plenty of product to start you on your way. Even if you don’t build that first sign, you will learn several lessons along the way.
If the thought of earning money in the billboard business excites you, you are in luck! We are holding a Billboard Bootcamp in St. Louis, Missouri, August 13th and 14th. For more information, contact Frank Rolfe at (573) 535- 0206 or at frank.rolfe@gmail.com.
Wednesday, April 27, 2011
How to Build a Billboard
There is a right way and a wrong way to build a billboard. Unfortunately, the punishment for not building the right way can be crushing – from $10,000 to move the sign to total loss of your investment if property damage leads to expensive litigation. Building a billboard the correct way is essential to prospering in the outdoor billboard business.
The first step in building a billboard is to gather all of the relevant information regarding billboard placement. You need to know the front and side setback regulations (both city and state), the exact dimensions of the structure (from the blueprints), and distance that the light fixtures stick out from the catwalks – everything that will determine sign placement.
The next step is to map out, with all this information in hand, exactly where the billboard column should go. When the driller gets there to drill the billboard foundation, the only question he will ask you is where the center of the column will go. You need to map out, well ahead of time and without any pressure, where that center should exactly be. One of the best methods is to buy some wooden stakes and a hammer, and map out where all the corners of the sign will be. This will help you to visualize all of the setbacks and their relation to the real sign.
Once you have figured out exactly where the center of the column should go, give yourself a break and increase the front and side setback by an extra foot or two. I learned this from experience, since you never really know 100% where the property lines are. If there is ever a dispute on the property boundary, you will have to hire a surveyor to find the exact property line, and it may be a foot or so different than where you assumed it is. Even if the property owner tells you with great authority exactly where their property begins, don’t count on it. I once had a land owner show me where the easements and underground pipes on his property were, and then I dug down and hit an 18” water main. The cost to move a billboard is extremely high – around $10,000 or so. However, nobody will ever notice a 2’ additional setback. It’s a simple case of risk vs. reward.
Before you start building the sign make sure that you have removed any obstruction to the sign that it is within your power to do. If you have permission from the neighbor to trim his tree, then trim it before the sign goes in. It always works best to do your trimming and removing before the sign calls a lot of attention to what you are doing. You never know what impact the actual sign may have on the agreeable neighbor – they may change their mind when they see the huge size of the sign they will be staring out forever.
Now that you have a mastery of the sign’s location, it’s time to get ready for the steel to arrive and the construction to begin. Prior to the arrival of the heavy equipment and some huge pieces of steel, it is important to obtain complete permission and cooperation from the landowner (and tenant) for the dislocation that will occur at his property on the day of construction. You should also make 100% that you have all of the necessary permits and that none have expired. Remember that in some cities, you must commence construction within so many days of the permit issuance, or it terminates. You cannot take the risk of building a sign that has no legal permit. You should also scout out all of the access issues – how will the big trucks get in? Hopefully, your sign erector has already walked the site with you.
Once the sign erector and foundation driller show up, you should never leave the job site. There are many problems that can come up during construction, and you need to be there to help make the choices on how to remedy them. The first potential risk is the possibility of hitting water or rock when drilling the foundation. While the driller should have a solution ready in the event that either should occur, you will have to give on-the-spot approval for the additional cost to fix the problem. Other reasons to stay on-site the entire time is to help resolve any problems with the property owner or neighbors (noise issues, etc.), and to make sure that the exact location you marked for the center of the pole is utilized. I have been on job sites where the driller pulls out the stake and then forgets exactly where it was.
Once the driller is at work, he may get lazy and not drill quite as deep as the plans recommend. This compromises the safety of the sign, as well as throwing off your height limit. Make sure and police that the hole is the correct depth. Even a 6” difference can be a huge problem. Watch him measure the depth, and make sure that he does not cheat.
Once the pole is in the hole, it is time to choose the “V” – the angles of the sign faces in relation to the traffic. This is something you never want to leave up to the installer. It’s not their sign, they will not be saddled with renting the ad space, so they get lazy and don’t do nearly as good as job as you can do yourself. The correct way to choose the “V” angles is from the road it is seen from. It sounds awkward, but you have to normally spot the angles from the middle of the road or highway. I normally use a cell phone to do this as the sign installer cannot hear you from 100 yards away.
When the pole is in the hole and aligned, it is time for the concrete truck. This is the final step that requires your presence. With the concrete, your focus is to make sure that they do not over-fill the hole, or make a big mess on the property. The concrete should stop about 2” from ground level, so that you can put dirt and grass back over the hole. And the biggest mess you can make on the property is a bunch of concrete dumped on the property. Often, just your presence makes the concrete guy more careful.
Once the concrete has been poured, you no longer have to be on-site through the end of the construction process. However, you still have some additional duties to build a sign properly. Make sure that the permit is clearly affixed to the billboard pole, so that the city inspector knows you have one and that you are following it. Also, take some sort of thank-you gift to the landowner or tenant to show your appreciation for letting you tear up their property for a few days. It makes a great first impression.
You should make a lot of money with your first billboard. So it is important that you do not waste any money on having to fix the setback, height, angle, and visibility that you could have easily prevented through informed thinking and attention to detail. Follow these directions, and your billboard should go smoothly and successfully.
If the thought of earning money in the billboard business excites you, you are in luck! We are holding a Billboard Bootcamp in St. Louis, Missouri, August 13th and 14th. For more information, contact Frank Rolfe at (573) 535- 0206 or at frank.rolfe@gmail.com.
The first step in building a billboard is to gather all of the relevant information regarding billboard placement. You need to know the front and side setback regulations (both city and state), the exact dimensions of the structure (from the blueprints), and distance that the light fixtures stick out from the catwalks – everything that will determine sign placement.
The next step is to map out, with all this information in hand, exactly where the billboard column should go. When the driller gets there to drill the billboard foundation, the only question he will ask you is where the center of the column will go. You need to map out, well ahead of time and without any pressure, where that center should exactly be. One of the best methods is to buy some wooden stakes and a hammer, and map out where all the corners of the sign will be. This will help you to visualize all of the setbacks and their relation to the real sign.
Once you have figured out exactly where the center of the column should go, give yourself a break and increase the front and side setback by an extra foot or two. I learned this from experience, since you never really know 100% where the property lines are. If there is ever a dispute on the property boundary, you will have to hire a surveyor to find the exact property line, and it may be a foot or so different than where you assumed it is. Even if the property owner tells you with great authority exactly where their property begins, don’t count on it. I once had a land owner show me where the easements and underground pipes on his property were, and then I dug down and hit an 18” water main. The cost to move a billboard is extremely high – around $10,000 or so. However, nobody will ever notice a 2’ additional setback. It’s a simple case of risk vs. reward.
Before you start building the sign make sure that you have removed any obstruction to the sign that it is within your power to do. If you have permission from the neighbor to trim his tree, then trim it before the sign goes in. It always works best to do your trimming and removing before the sign calls a lot of attention to what you are doing. You never know what impact the actual sign may have on the agreeable neighbor – they may change their mind when they see the huge size of the sign they will be staring out forever.
Now that you have a mastery of the sign’s location, it’s time to get ready for the steel to arrive and the construction to begin. Prior to the arrival of the heavy equipment and some huge pieces of steel, it is important to obtain complete permission and cooperation from the landowner (and tenant) for the dislocation that will occur at his property on the day of construction. You should also make 100% that you have all of the necessary permits and that none have expired. Remember that in some cities, you must commence construction within so many days of the permit issuance, or it terminates. You cannot take the risk of building a sign that has no legal permit. You should also scout out all of the access issues – how will the big trucks get in? Hopefully, your sign erector has already walked the site with you.
Once the sign erector and foundation driller show up, you should never leave the job site. There are many problems that can come up during construction, and you need to be there to help make the choices on how to remedy them. The first potential risk is the possibility of hitting water or rock when drilling the foundation. While the driller should have a solution ready in the event that either should occur, you will have to give on-the-spot approval for the additional cost to fix the problem. Other reasons to stay on-site the entire time is to help resolve any problems with the property owner or neighbors (noise issues, etc.), and to make sure that the exact location you marked for the center of the pole is utilized. I have been on job sites where the driller pulls out the stake and then forgets exactly where it was.
Once the driller is at work, he may get lazy and not drill quite as deep as the plans recommend. This compromises the safety of the sign, as well as throwing off your height limit. Make sure and police that the hole is the correct depth. Even a 6” difference can be a huge problem. Watch him measure the depth, and make sure that he does not cheat.
Once the pole is in the hole, it is time to choose the “V” – the angles of the sign faces in relation to the traffic. This is something you never want to leave up to the installer. It’s not their sign, they will not be saddled with renting the ad space, so they get lazy and don’t do nearly as good as job as you can do yourself. The correct way to choose the “V” angles is from the road it is seen from. It sounds awkward, but you have to normally spot the angles from the middle of the road or highway. I normally use a cell phone to do this as the sign installer cannot hear you from 100 yards away.
When the pole is in the hole and aligned, it is time for the concrete truck. This is the final step that requires your presence. With the concrete, your focus is to make sure that they do not over-fill the hole, or make a big mess on the property. The concrete should stop about 2” from ground level, so that you can put dirt and grass back over the hole. And the biggest mess you can make on the property is a bunch of concrete dumped on the property. Often, just your presence makes the concrete guy more careful.
Once the concrete has been poured, you no longer have to be on-site through the end of the construction process. However, you still have some additional duties to build a sign properly. Make sure that the permit is clearly affixed to the billboard pole, so that the city inspector knows you have one and that you are following it. Also, take some sort of thank-you gift to the landowner or tenant to show your appreciation for letting you tear up their property for a few days. It makes a great first impression.
You should make a lot of money with your first billboard. So it is important that you do not waste any money on having to fix the setback, height, angle, and visibility that you could have easily prevented through informed thinking and attention to detail. Follow these directions, and your billboard should go smoothly and successfully.
If the thought of earning money in the billboard business excites you, you are in luck! We are holding a Billboard Bootcamp in St. Louis, Missouri, August 13th and 14th. For more information, contact Frank Rolfe at (573) 535- 0206 or at frank.rolfe@gmail.com.
Monday, April 25, 2011
How to Get What You Want from City Hall
For most billboard owners, your big boss is city hall. Without their permit and approval, you cannot build, or rent, or maintain your billboard. And because of their enormous power, it is essential that you have a good strategy for dealing with them in a manner that can get you what you want.
Get Personal
Get to know the person who issues permits for billboards in your market. Don’t be corny about it, that will undermine you. But learn their name and say “Hello _________” everytime you see them. They will, over time, get to know who you are, and that personal touch will make it easier to get the benefit of the doubt when issues come up. It is a lot easier to be mean to a faceless corporation than to their buddy who they say hi to all the time. Do not, contrary to what some people will tell you, get too close to them. This will suggest that you are possibly bribing them or doing something else illegal, and will force them to get tough on you to dispel any rumors. Also, if you get too personal, and it turns out that you really don’t like each other, you’re screwed. I knew an operator that went so far as to ask out on dates the female inspectors just to try and get an advantage. That’s stupid, and only results in trouble later.
Establish Trust
Never try and cheat or lie to the inspector. Once the trust is broken, it is nearly impossible to get it back. Always be straightforward and honest if you can. If not, then at least try and not directly lie. If the inspector asks you if the sign is far enough from the next sign down, say “I think so” not “yes it is”. Be like a politician and never box yourself in with your lies (like Bush’s “read my lips: no new taxes”). You want the inspector to believe in you so fully, over time, that they will approve your applications without even inspecting them. I have even gotten away with murder, occasionally, where the inspector will let me build a sign a little too tall or big, as they trust me not to get them in trouble, or to admit that they knew what I did.
Write Great Applications
Sure, you never did your homework in high school, but this is the real world and that habit won’t cut it any longer. You sign applications need to be perfect, with every blank filled in and all the engineering and other submissions attached. And they should be typed. If the inspector can’t read your writing, then they will not be in a good frame of mind when judging your work. And often, if the forms are filled out properly, you may get your permit smoothly, even if there should have been a question or two on it. The biggest mistake you can make is to leave a key section blank, hoping that the inspector will fill it in. For example, you’re too lazy to measure the distance to the sign down the street, so you guess or put in an approximate distance. Now the inspector has to measure it, and they will not be very happy with you, and may come up one foot short, accidentally of course, of the distance you needed to get your permit.
Don’t Be Afraid To Get Tough If You Are Mistreated
If you have followed all of these steps, and are still not getting what you want at City Hall and, in fact, are being mistreated, don’t be afraid to stop being nice and get tough. Some city inspectors are impossible to work with, and will lie and cheat you constantly. In those occasions, and if the stakes are high enough, call in a respected real estate lawyer to work with the city for you. I have had several situations where I was being not treated fairly, and I did just that. And, in all cases, I won. Normally, the abusive inspector will crack almost immediately if you call in an attorney. I had one occasion at the city of Dallas where the city was so afraid I would sue the city over some illegal treatment, that they granted me a variance to build a sign that was slightly too near another one on a separate application. Don’t allow yourself to be bullied.
Remember the guy who dated the inspectors? He dated one that took one of my applications, denied it, whited out my name, wrote in her boyfriend’s name, and approved it. I found the evidence at city hall records. Everyone told me to let it go, that it could only cause ill will. But I took it to the head of the department and caused real problems. I never got that permit back, but I had no problem in the future, as the inspector was afraid of me. And the guy who was dating her? Well, they broke up and I don’t think he ever got another permit.
Remember the Roman strategy “you can get what you want by having people either love you or fear you”. That’s a pretty good strategy at City Hall.
Conclusion
You need to put as much effort into your relationship at city hall as you do with your banker and your spouse. Often, this relationship will make all the difference in getting what you want when things are in a “grey” area. And having a good relationship with city hall makes the whole permit process a much more pleasant experience.
Get Personal
Get to know the person who issues permits for billboards in your market. Don’t be corny about it, that will undermine you. But learn their name and say “Hello _________” everytime you see them. They will, over time, get to know who you are, and that personal touch will make it easier to get the benefit of the doubt when issues come up. It is a lot easier to be mean to a faceless corporation than to their buddy who they say hi to all the time. Do not, contrary to what some people will tell you, get too close to them. This will suggest that you are possibly bribing them or doing something else illegal, and will force them to get tough on you to dispel any rumors. Also, if you get too personal, and it turns out that you really don’t like each other, you’re screwed. I knew an operator that went so far as to ask out on dates the female inspectors just to try and get an advantage. That’s stupid, and only results in trouble later.
Establish Trust
Never try and cheat or lie to the inspector. Once the trust is broken, it is nearly impossible to get it back. Always be straightforward and honest if you can. If not, then at least try and not directly lie. If the inspector asks you if the sign is far enough from the next sign down, say “I think so” not “yes it is”. Be like a politician and never box yourself in with your lies (like Bush’s “read my lips: no new taxes”). You want the inspector to believe in you so fully, over time, that they will approve your applications without even inspecting them. I have even gotten away with murder, occasionally, where the inspector will let me build a sign a little too tall or big, as they trust me not to get them in trouble, or to admit that they knew what I did.
Write Great Applications
Sure, you never did your homework in high school, but this is the real world and that habit won’t cut it any longer. You sign applications need to be perfect, with every blank filled in and all the engineering and other submissions attached. And they should be typed. If the inspector can’t read your writing, then they will not be in a good frame of mind when judging your work. And often, if the forms are filled out properly, you may get your permit smoothly, even if there should have been a question or two on it. The biggest mistake you can make is to leave a key section blank, hoping that the inspector will fill it in. For example, you’re too lazy to measure the distance to the sign down the street, so you guess or put in an approximate distance. Now the inspector has to measure it, and they will not be very happy with you, and may come up one foot short, accidentally of course, of the distance you needed to get your permit.
Don’t Be Afraid To Get Tough If You Are Mistreated
If you have followed all of these steps, and are still not getting what you want at City Hall and, in fact, are being mistreated, don’t be afraid to stop being nice and get tough. Some city inspectors are impossible to work with, and will lie and cheat you constantly. In those occasions, and if the stakes are high enough, call in a respected real estate lawyer to work with the city for you. I have had several situations where I was being not treated fairly, and I did just that. And, in all cases, I won. Normally, the abusive inspector will crack almost immediately if you call in an attorney. I had one occasion at the city of Dallas where the city was so afraid I would sue the city over some illegal treatment, that they granted me a variance to build a sign that was slightly too near another one on a separate application. Don’t allow yourself to be bullied.
Remember the guy who dated the inspectors? He dated one that took one of my applications, denied it, whited out my name, wrote in her boyfriend’s name, and approved it. I found the evidence at city hall records. Everyone told me to let it go, that it could only cause ill will. But I took it to the head of the department and caused real problems. I never got that permit back, but I had no problem in the future, as the inspector was afraid of me. And the guy who was dating her? Well, they broke up and I don’t think he ever got another permit.
Remember the Roman strategy “you can get what you want by having people either love you or fear you”. That’s a pretty good strategy at City Hall.
Conclusion
You need to put as much effort into your relationship at city hall as you do with your banker and your spouse. Often, this relationship will make all the difference in getting what you want when things are in a “grey” area. And having a good relationship with city hall makes the whole permit process a much more pleasant experience.
Tuesday, April 19, 2011
How to Purchase an RV Park
Many investors are considering buying RV parks as not only an investment, but as a lifestyle choice. With millions of Americans approaching retirement, a very fundamental concept is combining one’s retirement years with one’s investment objectives – and this often points to an RV park as the best of both worlds.
RV parks not only offer high investment returns, but a satisfying, enjoyable lifestyle. The opportunity to be your own boss, and enjoy a beautiful scenic area, work with happy customers, and spend a good deal of time outside, is an unbeatable opportunity for most people.
But how do you find an RV park for sale?
Well, there’s more strategies than you may think.
Internet resources
There are hundreds of RV parks for sale, right this very moment, that you can view from the comfort of your home. If you have computer access, go on the internet and you will see more parks than you can consider in one day. The #1 website for listings of RV parks for sale is www.rvparkstore.com. It lists hundreds of RV parks, with their basic facts and locations. Another site is www.loopnet.com, although you will have to register on that site before you can see any listings. You may also find RV parks for sale on eBay and Craigslist.
The internet allows you so see a huge amount of deals simultaneously, which helps you to define the specifics of what you have an interest in – both for your budget and for your interests. Prior to the internet, it would have been impossible to see this many listings.
Direct mail
Once you have narrowed your geographic interest, it is advantageous to send postcards or letters to the owners of RV parks in those areas. You would be surprised how many RV park owners will respond to such a mailer. Their reasons for selling vary widely, from a death, divorce and estate planning, to a desire to travel or change locations themselves.
Even RV park owners who do not have an interest in selling may know other operators who do.
Cold calling
An alternative to a direct mail campaign is to call the owners of RV parks in the areas you have an interest in and see if they want to sell. This may sound more scary than it actually is – remember, you are not trying to sell them anything, only to give them money if they want to sell. You will find that most are very pleasant and more than happy to talk to you. They can also dispense a great deal of information on the realities of owning and operating an RV park.
Brokers
As you look through the listings on Rvparkstore.com and other places, you will start to notice a small fraternity of brokers who deal exclusively in RV parks. You need to also call these brokers and see if they have any properties that meet your criteria.
You will soon find that most brokers specialize in a tight geographic area, and may have sellers who do not publicly list their RV park for sale. As a result, a broker may be one of your best ways to find the ideal park for you. And you can often negotiate more effectively through a broker, so they effectively pay for their own commission.
Word-of-mouth
As a result of talking to a lot of people, the word will get out that you are looking for an RV park in a certain area. And that sets off a chain reaction of people hearing about you from word-of-mouth. It may be a friend of a park owner, or a different broker, or a banker settling an estate – it doesn’t matter, because you only need one.
Conclusion
For many people, RV parks are an ideal investment. And there are many available out there if you know where to look and are diligent in your search. Through a combination of the internet, U.S. mail service, and telephone, you can find hundreds of listings to consider in a very short amount of time.
RV parks not only offer high investment returns, but a satisfying, enjoyable lifestyle. The opportunity to be your own boss, and enjoy a beautiful scenic area, work with happy customers, and spend a good deal of time outside, is an unbeatable opportunity for most people.
But how do you find an RV park for sale?
Well, there’s more strategies than you may think.
Internet resources
There are hundreds of RV parks for sale, right this very moment, that you can view from the comfort of your home. If you have computer access, go on the internet and you will see more parks than you can consider in one day. The #1 website for listings of RV parks for sale is www.rvparkstore.com. It lists hundreds of RV parks, with their basic facts and locations. Another site is www.loopnet.com, although you will have to register on that site before you can see any listings. You may also find RV parks for sale on eBay and Craigslist.
The internet allows you so see a huge amount of deals simultaneously, which helps you to define the specifics of what you have an interest in – both for your budget and for your interests. Prior to the internet, it would have been impossible to see this many listings.
Direct mail
Once you have narrowed your geographic interest, it is advantageous to send postcards or letters to the owners of RV parks in those areas. You would be surprised how many RV park owners will respond to such a mailer. Their reasons for selling vary widely, from a death, divorce and estate planning, to a desire to travel or change locations themselves.
Even RV park owners who do not have an interest in selling may know other operators who do.
Cold calling
An alternative to a direct mail campaign is to call the owners of RV parks in the areas you have an interest in and see if they want to sell. This may sound more scary than it actually is – remember, you are not trying to sell them anything, only to give them money if they want to sell. You will find that most are very pleasant and more than happy to talk to you. They can also dispense a great deal of information on the realities of owning and operating an RV park.
Brokers
As you look through the listings on Rvparkstore.com and other places, you will start to notice a small fraternity of brokers who deal exclusively in RV parks. You need to also call these brokers and see if they have any properties that meet your criteria.
You will soon find that most brokers specialize in a tight geographic area, and may have sellers who do not publicly list their RV park for sale. As a result, a broker may be one of your best ways to find the ideal park for you. And you can often negotiate more effectively through a broker, so they effectively pay for their own commission.
Word-of-mouth
As a result of talking to a lot of people, the word will get out that you are looking for an RV park in a certain area. And that sets off a chain reaction of people hearing about you from word-of-mouth. It may be a friend of a park owner, or a different broker, or a banker settling an estate – it doesn’t matter, because you only need one.
Conclusion
For many people, RV parks are an ideal investment. And there are many available out there if you know where to look and are diligent in your search. Through a combination of the internet, U.S. mail service, and telephone, you can find hundreds of listings to consider in a very short amount of time.
Monday, April 11, 2011
For Billboards, Recessions are Buying and Building Opportunities
Is our nation in a recession? If so, that signals a great buying and building opportunity for billboards. Some of the greatest billboard buys and builds in history have come as a result of an economic downturn. Why? The reasons are numerous:
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In tough times, prices are cheaper. Everything gets their prices slashed in a recession. And that includes billboards. Even though it may not appear so now, price can go down real far real fast – if the person really needs the money. And they don’t negotiate as hard either.
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Banks are very eager to unload billboards they have taken over through foreclosure. No bank officer ever wanted to run a billboard, much less have to learn how to do so Banks are willing to practically give you the sign in the proper circumstances.
*
Landowners who would never take your call before are suddenly calling you to rack up some additional cash flow. It’s amazing how many new opportunities come up during a bust. Suddenly, $500 per month sounds pretty good to most every landowner.
*
Land changes hands frequently, and the new owners are new prospects for you to build a sign on. Just because the current owner told you “no”, don’t bet that the new one won’t say “yes”. Just stay on top of your proposed locations to see who has been replaced. Someone with a low basis in some “troubled” land may find your billboard income all the more significant and appealing.
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Other, big sign companies are willing to unload their least profitable signs in bad times. Stay in contact regularly with the big companies, so you can be in the loop if they want to dump a “dog” sign.
So don’t let the economy get you down. You actually want a recession now and then to “cleanse” out the weak players, and open up more potential billboard locations and acquisitions. Even “gloom and doomers” can have fun in the outdoor billboard business!
Would you like to have success in the Billboard Industry? Attend our Billboard Bootcamp in St. Louis on August 13-14. Don't delay and miss your opportunity. For more information, contact Frank Rolfe at (573) 535-0206, or frank.rolfe@gmail.com.
*
In tough times, prices are cheaper. Everything gets their prices slashed in a recession. And that includes billboards. Even though it may not appear so now, price can go down real far real fast – if the person really needs the money. And they don’t negotiate as hard either.
*
Banks are very eager to unload billboards they have taken over through foreclosure. No bank officer ever wanted to run a billboard, much less have to learn how to do so Banks are willing to practically give you the sign in the proper circumstances.
*
Landowners who would never take your call before are suddenly calling you to rack up some additional cash flow. It’s amazing how many new opportunities come up during a bust. Suddenly, $500 per month sounds pretty good to most every landowner.
*
Land changes hands frequently, and the new owners are new prospects for you to build a sign on. Just because the current owner told you “no”, don’t bet that the new one won’t say “yes”. Just stay on top of your proposed locations to see who has been replaced. Someone with a low basis in some “troubled” land may find your billboard income all the more significant and appealing.
*
Other, big sign companies are willing to unload their least profitable signs in bad times. Stay in contact regularly with the big companies, so you can be in the loop if they want to dump a “dog” sign.
So don’t let the economy get you down. You actually want a recession now and then to “cleanse” out the weak players, and open up more potential billboard locations and acquisitions. Even “gloom and doomers” can have fun in the outdoor billboard business!
Would you like to have success in the Billboard Industry? Attend our Billboard Bootcamp in St. Louis on August 13-14. Don't delay and miss your opportunity. For more information, contact Frank Rolfe at (573) 535-0206, or frank.rolfe@gmail.com.
Tuesday, March 29, 2011
Investing in Mobile Homes
There are over 60,000,000 Americans with household incomes under $20,000 per year. To this giant market, a mobile home is the only form of detached housing that they will ever be able to afford. And, as a result, the demand for mobile homes has never been higher. But how can you take advantage of this opportunity?
The Basics of Affordable Housing
Before you can begin to investing, you must first understand your customer. For those families with household incomes under $20,000 per year - using the government's own ratio of housing cost to income of 33% - their housing budget is around $500 per month. At the same time, the average cost of an apartment in the U.S. in 2010 was around $1,030 per month. The point is that this market segment is extremely thankful to find something that they can afford, and is not very discriminating on the quality of the product. They are looking for basic shelter - literally a roof over their head, a solid floor, running water and sewer, and heat in the winter. These customers are not expecting fine carpets, hardwood floors, upscale cabinetry. As a result, a successful investor in mobile homes will not focus on providing more than the basics. That is not to say that the home should not be clean and attractive. But the American obsession with upscale bathrooms and kitchens has no place in affordable housing.
And before you think that this customer is different than you and I, look around you. If you earn $10 per hour or less, you are in this segment. And that is a giant pool of jobs in America today. Almost everyone who works at the grocery store, McDonald's - everywhere you go - earns in this range. And as America's economy continues to decline, this number grows.
Why Mobile Homes Are The Answer to Affordable Housing
Mobile homes are the lowest cost form of detached housing to build. It costs less than $30 per square foot to build a mobile home, as opposed to around $100 for a stick-built home. And used homes often sell in the area of $10 to $15 per square foot. HUD has controlled the construction standards of homes since the 1970s, with the goal of keeping costs at a minimum. If there's been a way to shave costs, it's been done.
The other key is the quality of life that a mobile home can provide the resident as compared to other inexpensive housing options. Unlike an apartment, the customer has nobody banging on their walls or ceiling. They have a yard. They can have a pet. Basically, mobile homes allow residents to have self-respect, and a "neighborhood" feel that supports a healthy lifestyle.
Why Mobile Homes Are Easy To Renovate
Mobile homes have some unusual attributes that other forms of housing do not share. One is that they have no permanent foundation. A mobile home's foundation is nothing more than a steel chassis, to which the wooden floor is attached. There are so slabs and no piers - nothing expensive to settle or crack. Leveling a mobile home costs in the hundreds compared to a stick-built home's thousands. All utilities run in a common "trough" as opposed to the myriad of wires and pipes in a stick-built home. This makes it easy to locate and repair the water, sewer and electric pipes and lines.
One of the most unusual components of a mobile home is the fact that none of the walls are load-bearing. A mobile home is structurally similar to a shoe box - the walls and roof are the only components needed to make it stand up. This gives you much more freedom in renovations, as virtually all internal walls are simply cosmetic.
Unbelievable Amount of Demand
If the U.S. is in a recession, you would never know it if you run an ad for a mobile home for sale or rent. Even in a small market, you should receive 30 to 50 calls a week in response to your ad. At a mobile home park in Pueblo, Colorado recently, the number of calls exceeded 150 in one week. Why all the calls? Because there is a huge, unsatisfied demand for affordable housing. But that's not the whole story. The other cause of the giant demand is the poor quality of traditional apartment offerings. Have you seen an affordable housing apartment complex recently? Anyone who thinks that mobile home parks are unattractive has not visited apartments. The true crime center of most cities today are the lower-income apartment developments, with drug dealers standing out in front and prostitutes, gangs and drug addicts living inside. This is a horrible environment for any family or individual to live in, and many buyers and renters of mobile homes are fleeing from these terrible situations. In fact, most cities now view aging apartment complexes as their #1 problem - not trailer parks.
Healthy Numbers
Mobile homes are an attractive investment due to very attractive numbers. Essentially, it is easy to sell a mobile home for much more than you paid for it. A mobile home that you buy and renovate for $8,000 can be sold for $15,000 and a home that costs $12,000 can be sold for $30,000. You can buy them relatively cheaply because most people do not want to invest in this asset type. At the same time, there is a huge supply/demand gap, so you can price them high without much competition. The important fundamental - and the one that needs to be your guide in every decision you make - is to stick with the business model of affordable housing. You have to construct the monthly payment, including mobile home park lot rent, to not exceed around $500 per month. This is what the customer can afford. If you place the consumer in a position of having a bigger monthly obligation than they can afford - as was just demonstrated in the sub-prime mortgage meltdown - you will end up in endless defaults. This serves no one, as you are constantly having to clean and re-sell the home and your customers are denied the affordable housing, and long term benefit, that they are searching for.
Gaining Knowledge In This Niche
There are two websites that contain a large amount of information on this investment sector. One is http://www.mobilehomeparkstore.com, the #1 website in the U.S. for mobile homes and mobile home parks.
It is also important to note that there are investment funds that cater to this investment niche, the most popular of which is the Affordable Housing Fund at http://www.affordablehousingfund.com. And these funds allow for investment via self-directed IRAs with small initial investments as low as $2,000.
Conclusion
Affordable housing is going to be one of the key investment sectors in real estate in the coming years. Get in now, on the ground floor. You can obtain spectacular returns and -- equally important -- provide nice housing to hard-working Americans who need it badly. This is a giant market, and one that you will be hearing a lot more about in the future.
The Basics of Affordable Housing
Before you can begin to investing, you must first understand your customer. For those families with household incomes under $20,000 per year - using the government's own ratio of housing cost to income of 33% - their housing budget is around $500 per month. At the same time, the average cost of an apartment in the U.S. in 2010 was around $1,030 per month. The point is that this market segment is extremely thankful to find something that they can afford, and is not very discriminating on the quality of the product. They are looking for basic shelter - literally a roof over their head, a solid floor, running water and sewer, and heat in the winter. These customers are not expecting fine carpets, hardwood floors, upscale cabinetry. As a result, a successful investor in mobile homes will not focus on providing more than the basics. That is not to say that the home should not be clean and attractive. But the American obsession with upscale bathrooms and kitchens has no place in affordable housing.
And before you think that this customer is different than you and I, look around you. If you earn $10 per hour or less, you are in this segment. And that is a giant pool of jobs in America today. Almost everyone who works at the grocery store, McDonald's - everywhere you go - earns in this range. And as America's economy continues to decline, this number grows.
Why Mobile Homes Are The Answer to Affordable Housing
Mobile homes are the lowest cost form of detached housing to build. It costs less than $30 per square foot to build a mobile home, as opposed to around $100 for a stick-built home. And used homes often sell in the area of $10 to $15 per square foot. HUD has controlled the construction standards of homes since the 1970s, with the goal of keeping costs at a minimum. If there's been a way to shave costs, it's been done.
The other key is the quality of life that a mobile home can provide the resident as compared to other inexpensive housing options. Unlike an apartment, the customer has nobody banging on their walls or ceiling. They have a yard. They can have a pet. Basically, mobile homes allow residents to have self-respect, and a "neighborhood" feel that supports a healthy lifestyle.
Why Mobile Homes Are Easy To Renovate
Mobile homes have some unusual attributes that other forms of housing do not share. One is that they have no permanent foundation. A mobile home's foundation is nothing more than a steel chassis, to which the wooden floor is attached. There are so slabs and no piers - nothing expensive to settle or crack. Leveling a mobile home costs in the hundreds compared to a stick-built home's thousands. All utilities run in a common "trough" as opposed to the myriad of wires and pipes in a stick-built home. This makes it easy to locate and repair the water, sewer and electric pipes and lines.
One of the most unusual components of a mobile home is the fact that none of the walls are load-bearing. A mobile home is structurally similar to a shoe box - the walls and roof are the only components needed to make it stand up. This gives you much more freedom in renovations, as virtually all internal walls are simply cosmetic.
Unbelievable Amount of Demand
If the U.S. is in a recession, you would never know it if you run an ad for a mobile home for sale or rent. Even in a small market, you should receive 30 to 50 calls a week in response to your ad. At a mobile home park in Pueblo, Colorado recently, the number of calls exceeded 150 in one week. Why all the calls? Because there is a huge, unsatisfied demand for affordable housing. But that's not the whole story. The other cause of the giant demand is the poor quality of traditional apartment offerings. Have you seen an affordable housing apartment complex recently? Anyone who thinks that mobile home parks are unattractive has not visited apartments. The true crime center of most cities today are the lower-income apartment developments, with drug dealers standing out in front and prostitutes, gangs and drug addicts living inside. This is a horrible environment for any family or individual to live in, and many buyers and renters of mobile homes are fleeing from these terrible situations. In fact, most cities now view aging apartment complexes as their #1 problem - not trailer parks.
Healthy Numbers
Mobile homes are an attractive investment due to very attractive numbers. Essentially, it is easy to sell a mobile home for much more than you paid for it. A mobile home that you buy and renovate for $8,000 can be sold for $15,000 and a home that costs $12,000 can be sold for $30,000. You can buy them relatively cheaply because most people do not want to invest in this asset type. At the same time, there is a huge supply/demand gap, so you can price them high without much competition. The important fundamental - and the one that needs to be your guide in every decision you make - is to stick with the business model of affordable housing. You have to construct the monthly payment, including mobile home park lot rent, to not exceed around $500 per month. This is what the customer can afford. If you place the consumer in a position of having a bigger monthly obligation than they can afford - as was just demonstrated in the sub-prime mortgage meltdown - you will end up in endless defaults. This serves no one, as you are constantly having to clean and re-sell the home and your customers are denied the affordable housing, and long term benefit, that they are searching for.
Gaining Knowledge In This Niche
There are two websites that contain a large amount of information on this investment sector. One is http://www.mobilehomeparkstore.com, the #1 website in the U.S. for mobile homes and mobile home parks.
It is also important to note that there are investment funds that cater to this investment niche, the most popular of which is the Affordable Housing Fund at http://www.affordablehousingfund.com. And these funds allow for investment via self-directed IRAs with small initial investments as low as $2,000.
Conclusion
Affordable housing is going to be one of the key investment sectors in real estate in the coming years. Get in now, on the ground floor. You can obtain spectacular returns and -- equally important -- provide nice housing to hard-working Americans who need it badly. This is a giant market, and one that you will be hearing a lot more about in the future.
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