Turn $100K into $1.2M Value - The Hack Many Retail Developers Miss!

  📍 If you could make a million dollars just by investing in a hundred thousand dollars, wouldn’t you do that?

Hey everybody. Joseph Gozlan with

Eureka Business Group, and I had an interesting conversation with a retail center developer recently. And he’s building a shopping center on a major highway about 50,000 vehicles per day.

And it’s a new construction. Everything is new. And I asked him, “Hey, are you gonna put a billboard on your property?” And he goes, “I didn’t think about it.”

And I helped him realize that a billboard like this is gonna generate a between $5,000 and $15,000 a month in income of advertising, and he can leverage that at the beginning while he’s leasing up his properties to advertise his space. But as his spaces are being full, he can lease it out to a media company that’s gonna put advertising on it between $5,000 and $15,000.

Let’s put something in the middle. Let’s say $8,000 a month. Let’s take off $2,000 for operations, expenses, electricity, and so on. And that gives you about $6,000 a month in income that’s additional to his property’s income. If you capitalize that on a 6% cap rate, that’s over $72,000 a year, and that’s $1 million to $1.2 million.

In added value to shopping center, so it’s a no brainer if you are developing a shopping center on a major highway, or if you’re buying one, consider spending the a $100K to put a billboard if it makes sense. Obviously reach out to media companies and pre-negotiate the agreement before you actually go into construction and put the a hundred thousand dollars in.

But this could add a $1 million to your property value. Or what we’ve seen is we’ve seen some shopping center owners that had a billboard parcel it out to a very small little piece of land that just around that billboard and then they split it out and now they have another income producing asset that they can sell separately or they can keep when they sell the shopping center.

So a $100K investment, $1.2 million in value on a six cap valuation. It’s a no brainer to me. What do you think?