Simplifying billboard land ownership
Outdoor Equities LLC is paying fantastic rates for leases that conform to our standards. You remove your future risk from the equation, and you receive a lump sum of cash instead of waiting for smaller annual lease payments making this a very smart decision.
You, as the landowner, don’t have many risks associated with your lease income. You do have some risks that could cause your lease payments to stop. Many billboard locations were legal when built, but zoning codes have since changed, making the signs grandfathered in. Typically grandfathered uses can be continued, but not rebuilt. If a storm were to come through, a truck crash into, or the roadway becomes widened there is a strong possibility of losing the billboard location. Another risk some land owners have is the risk of early termination and or rent reduction. Some billboard company leases can be terminated by the company within 30-90 days by written notice.
Companies have been known to do this if a location is not performing to their expectations or for other unforseen reasons. For example, if the zoning codes for billboards have changed since their sign was built there is a strong possibility of not receiving a permit to rebuild.
An easement is a right given to another person or entity to use land that person or entity does not own. Easements can also be referred to as a right of way. Many properties have easements or rights of way on them. Your property may already without you realizing it. A great example is utility companies. They may have an easement to run a utility underground through your property or to set a pole to carry overhead service on that property. The easement is perpetual in nature, meaning that it runs with the land. You are free to sell your property at any time. The easement has no effect on your ability to develop, sell, or use your property.
We are an investment company. With any type of investment risks are involved. One of the ways we manage our risk is through diversification. This being our sole business, we can diversify in ways independent landlords cannot. For example, if you have two billboard leases on your property and they are removed, all of your lease income instantly stops. Outdoor Equities LLC keeps adding additional easements to our portfolio containing billboards that are located in different areas, along different types of roadways and that contain billboards of different size. This along with other strategies and economies of scale allow us to provide you with a lump sum payment, which you can take and immediately invest while we take the risk.
By taking advantage of our offer the money you receive from the easement sale will be taxed as capitol gains instead of ordinary income like your annual lease payment. You could also do a 1031 exchange in which you take your proceeds and roll them into another property without the taxes. We recommend you consult your accountant as everyone’s situation is unique.
