Where to Start w/ Parking Spaces?

Question

Hey ya'll,

My aunt and I are interested in purchasing and flipping parking spaces.

• What are the best sources to find these lots/spaces?
• Do you know any brokers who specialize in these types of investments?

We have about $50k and would appreciate a little guidance to begin building our portfolio.

Thanks!

Royce Talbo · Answer

After reading some of these posts I feel my post may be in a different mind frame.  He said parking space, not parking lots or parking structure, so I was assuming he meant just a single parking stall.  He also stated that he had 50,000 to start with, which is about how much a single parking stall goes for here in Hawaii.  Jeremy W.  can you clarify what you are looking for?

Lumi Ispas · Answer

Jeremy W. , if you are able to go and buy the parking spaces at auctions for half their worth, you might be able to make a bit of money, otherwise look for an alternative RE investments.

Good luck to you!

Mary B. · Answer

You can flip contracts for land or you can research the companies that own the parking lots in the Chicagoland area for pricing and such. It very well may be just one or two companies that work the majority of town for parking lots. Find out if they are in the market to purchase any new lots. You might want to research zoning laws on that within the county of the lots. Maybe your aim is to get the lot tarred, painted and coin-op or hire security/ attendants then flip the business / property for a profit. Find an agent or tell your agent that you are looking for discounted land to purchase. Tell them the size, price range and conditiion. I guess it makes a difference if you are looking to flip the business as its already up and running or moreso flip the lots after you've gotten it up to par and ready for use...

Kudos,

Mary

Royce Talbo · Answer

Jeremy W.  What is flipping parking spaces and how does it work?  I never heard of this before.  I heard of people investing in parking spaces and renting them out then resell years later when it appreciated.  How do you flip a parking space, there is nothing to upgrade on it? Are you talking about trailer parks?

Jeremy W. · Answer

Thanks @Mary B.  !

@Royce Talbo My aunt and I are mostly looking at individual parking spaces, but speaking to residential brokers, and investors with experience in the area, they say that you may buy a bank-owned lot.

@Omar C. Good call. Insurance and taxes are a huge factor - especially since Chicago is increasing it's RE taxes 20-30% soon.

I will keep ya'll updated as we go.

Simon Campbell · Answer

Flipping real estate is based on two premises. One, that you can get the property at substantially less than market value and two, that you can rehab the property or fix it up and resell it for more than you purchased it.

Before getting into the business, you need to do market research to measure the demand and the market price for a spot.

I highly doubt you can make a profit on painting, filling pot holes etc since all a buyer wants is a place to park their car when they go to work.

I have never ever heard of flipping parking spaces which makes me think that it is not profitable. Let me know if it works for you, I would love to hear a success story.

Omar C. · Answer

One of my customers many years ago used to be one of the larger companies that own many of the parking garages in Chicago and one thing to be aware of is the high taxes and insurance that are associated with parking spaces within Chicago.  Also, not sure if there is a strong market for them in Chicago as it is in New York or Boston.

Sean T. · Answer

Very popular in Boston(Back Bay and Beacon Hill).

I don't know anyone doing it but I see them constantly coming up for sale.

I will ask around.

Mary B. · Answer

There are parking lots used by the public transportation company for suburban lines here in the Philadelphia area. Two locations are near my residence that I use during the week to park my car then get the train to the city. The Chicago area is sure to have something similar if not then they certainly have a market for it.

Kudos,

Mary