The Best Unknown Real Estate Investment That NO ONE Is Talking About
We’re buying billboard leases, converting them to digital, and locking in long-term ad contracts. Plus, with the potential return of 100% bonus depreciation, these investments are offering both income and massive tax write-offs in year one.
Summary
An overlooked real estate investment opportunity is gaining traction, offering high returns with unique advantages that most investors are not yet aware of.
Highlights
- Single-Family Rental (SFR) Real Estate Investment Trusts (REITs) offer a hands-off approach to owning residential properties without the hassle of property management.
- These REITs are performing exceptionally well due to rising rental demand and limited housing supply, yet remain under the radar for many investors.
- The shift in demographics—especially among millennials starting families—is driving long-term growth in the single-family rental market.
- Compared to traditional real estate investments, SFR REITs provide liquidity, diversification, and professional management with lower entry barriers.
- With low public awareness and minimal media coverage, this niche offers a strategic advantage for early adopters seeking undervalued assets.
One of the best unknown real estate investments is billboards. And most of you probably don’t even think about these. You’re just flying down the road and you see these things subconsciously or consciously. You never know. But the thing about billboards is this. When you pick up your phone or your TV or computer, you can pause, fast forward, click on another channel, and you don’t even have to look at ads anymore.
Not with the billboard. You’re driving. It’s fixed. You pretty much have to see it. One of the strategies that Ross and I started doing, we started a company called MC Media where we started buying what’s called fixed billboards where they’re literally have two sides on the side of a road.
And these billboards, they have 25, 30, 40, and even 50-year leases. So, you imagine that you actually don’t even own the land. Then you might say, well, you’re a real estate guy. What does that even mean? Well, I’m buying the lease and then there’s a billboard on it, a flat screen in the sky. So, I replace them out with a digital and that’s about 250 to 400 grand depending on what I do.
But the reality is is I’m buying the lease. I’m buying the location. I’m replacing with digital. On what they call a static, I have two sides. On a digital, I have eight ads per side. So, I go from two ads to 16 ads. That’s called a value ad. The other thing that I love about this business, once it goes digital, you can actually just contract with some PR agency or have a graphic artist actually put ads up on a screen effortlessly and easily.
So, there’s a sales component to this to keeping the billboards occupied, of course. And the average occupancy of a billboard, believe it or not, or across the country is about 70%. So that’s not great when you start to look at it as compared to other things, but it doesn’t need to be more than that. So I just did this on a billboard that I bought in Columbus, Ohio, where the topline revenue is about $20,000 a month.
That’s right around $250,000 a year for total gross revenue at 70% occupied. Obviously, if I’m 80%, it’ll be a little higher. If I’m 60%, it’ll be a little bit lower. But after costs, which again aren’t that much because this doesn’t require a big staff. It doesn’t require a lot of people, the net is about $180 to $190,000 a year.
So the billboard and the lease cost a million bucks and I’ve got about $180 to $190,000 to be able to distribute against that million each and every year. But here is one of the biggest reasons that I think billboards are the very best investment moving forward. And that’s because of what we call bonus depreciation.
If you guys don’t know what bonus depreciation is, it’s okay cuz I didn’t know what it was either when I first got into the business. It essentially just gives you a write off in the current year you buy something. And because billboards are considered equipment or land improvements, you can write off whatever the federal government says you can write off.
And currently today it’s 40% but under the Trump bill it’s supposed to move to 100%. Which it historically has been. So if the bill gets passed, I’m currently working on a deal right now with six billboards between Las Vegas and Mosquite, Nevada. And it’s currently owned and operating right now. And a lot of these billboards have long-term contracts with the casinos and they have had for years.
And one of the strategies is to convert these static billboards into digital. And this would be from Las Vegas all the way up to Musket, Nevada along Interstate 15. And if you guys have ever driven that way, it’s on the way to Salt Lake City. It’s a very heavily traveled freeway. So again, we’re buying the lease plus the existing billboards plus the contracts that are already in place.
And those of course have a cash flow today. By converting some of those over to digital, those contract prices will go up. The revenue will go up. And all of that is projected inside of our little business plan. One of the biggest reasons that we’re going to do this is that we’re going to put 50% leverage on these six billboards, which requires about 50% equity.
50% debt, 50% equity. So, if the bonus depreciation goes back up to 100%. Now, $100,000 of investment could get close to $200,000 in tax savings because we potentially could get 100% write off from bonus depreciation in the year we buy it if this new tax bill passes. Even if we don’t, we’ll get 40% which is currently what the number is today.
Not only will we get cash flow, but we’ll get a huge tax write off way above our investment amount in this current tax year. We’re buying the leases, the existing billboards, and we’re doing a value ad by putting the digital ones on there. So, we’re growing our cash flow, and we’re getting our tax benefits from being able to buy this.
And it sweetens it by using leverage. We could pay all cash, but it’s actually better to use OPM or other people’s money and use 50% debt in this case because now a $100,000 investment could be close to 200,000 in tax savings. So, that’s the whole goal and that’s why I’m really bullish on billboards.
It doesn’t require a lot of people. Once the billboard is in place and once the lease is in place, there’s not a lot to do other than make sure that the weather and the elements aren’t damaging your investment. There’s not a lot of people involved except for keeping these occupied and making sure the customers that advertise on these billboards are happy.
There isn’t really a downside to buying these. The reason why they’re not on everybody’s radar is just because there’s not very many of them. A lot of the counties, even Clark County in Nevada, have stopped allowing more billboards. So, it’s a really, really small niche business and there’s not a lot of brokers that specialize in it.
It’s very similar to like RV parks or mobile home parks where you don’t really see these on a national stage oftent times and it’s really primarily owned by a lot of small owners. Gold is near all-time highs, but appreciation isn’t the only way to benefit. Monetary Metals, you could potentially earn a yield on your gold paid in physical gold without selling it. Here’s how it works.
When you lease your gold through their platform, pre-qualified companies pay to use it under strict guidelines like renting out real estate but with gold. Instead of paying to store your metal, you may earn up to 4% annually in gold. You stay in control and you can choose which leases to participate in.
Monetary Metals handles the due diligence, lease terms, and all the administration. Thousands of investors use this approach to grow their gold, not just sit on it. Visit monetary-medals.com/ken to learn more. Leasing gold involves risk and returns are not guaranteed. This is not an offer to buy or sell securities.
Please review all risk disclosures at monetary-metals.com. Visit monetary-medals.com/ken to learn more. From an advertiser standpoint, a lot of people would agree that there’s almost nothing you can do when you’re driving by a billboard to not see it. And you of course have lots of options here. And with the with the price of advertising going up, it’s because a lot of the consumers have a lot of choices and a lot’s coming at them at once.
Whereas when they’re driving a car, they’re just looking at the ad on the side of the road. So we believe it’s one of the last things that the advertiser can capture someone’s attention as they’re actually moving on by. So, if you’re an accredited investor and you’re interested in taking a look at some of the billboards that we bought and of course being on a list of taking a look at what we are buying, just click on the link below.