investing in parking spaces?

Question

Hi BP

Anyone have any experience?
I've got an investor inquiring in buying and then renting them out.

If only found parking for my condos,  swapping for tenants

I know in boston ppl sell unused lots  to neighbor.

With parking garages in NYC, is it even a viable business idea?

Thanks in advance

Bill Gulley · Answer

Had an uncle who had a leased parking lot, if you're close to a special events venue it's a license to steal, 20/25 bucks (evening 2-4 hours) for about 160 sq ft of pavement @ 100 spaces. Your insurance will be an expense you'll need to swallow, you are, regardless of the number of "not responsible" signs you put up, in a baliee position with the care, custody and control of the paying customer's vehicle.

I have had a loan on a small downtown lot, nothing significant but good CF. I am considering boat slips and docks, similar issues, more maintenance and labor, but good CF.

Ítalo Mendonça · Answer

Hi Lance, I know this is an old forum but would be interested to hear some more details as well. Feel free to PM me. Thanks!

Karen Margrave · Answer

Lance Miller Please PM me with the details.

Lance Miller · Answer

Hi Joel, it can be both.

Best deal is to have the operator guarantee you a monthly lease payment.  This is the best of the best for both parties.  Owner could care less how many cars are parked or what the operator is doing with the empty spaces.  The con is your return is fixed accept for yearly CPI increases.

Other set up is you pay operator a management fee. This is riddled with issues. This type of operation must be automated (gate cannot open without a car present and it counts the gate opens and closing).  We have seen it all to cheat the system here though.  One attendant removed the bolt for gate arm and had his own parking lot all day long!

The lot we personally own and operate are pay by space lots with a solar powered wireless kisosk.  Customer pays by the space number and uses a credit card. We have a tow company police the lot daily and they will randomly check if occupied spots are paid for.  They get paid spots by swiping a key fob next to the kiosk. We live close enough to these lots to check them weekly, but nothing more than that. Pretty easy.

Lance Miller · Answer

Karen, we found a niche we love so it makes it fun and easy.  We use guerrilla marketing to find unlisted parking lot, garages, and investors (our biggest compliment to date is a Cease and Desist letter from the University of Notre Dame for having cars flyered at a football game (that one is framed!).

Once we find good parking investment deals (passes the smell test and we verify the numbers), we pitch it to our top investors who have signed up to get our alerts.  It's not complicated and it works.

What's good in the OC? I found a very interesting deal in San Clemente that someone with your builder/investor background would be perfect. Let me know if you are interested and I can send you a PM about it.

...and Bill is right about insurance, it can be nightmare.  Luckily, we have that base covered too - another niche market for me.  I write parking lot and parking garage insurance.  It just works!

Joel Owens · Answer

Hi Lance,

I was looking at some of your listings. Are the parking lots guaranteed income or is it based off of a small operator paying you the monthly payment??

Sat the small guy is getting squeezed out by new parking going in. Would they then default on the payment  to the investor who owns the lot??

I know nothing about this niche.

Karen Margrave · Answer

Lance Miller Do tell!! I always find it so interesting to read about the wide variety of investments people make. From @Bill Gulley and boat slips to?? What types of areas are you buying in?

Lance Miller · Answer

Jennifer, is your investor looking to buy individual spaces or entire lots?  If it's the latter, they are onto something and you should be able to find something to help them make a nice return. We do it all the time.  Good luck.

investing in parking spaces?

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