Former Private Equity Investor Says Parking Lots Can Produce $100K In Monthly Cash Flow: 'Next Time You Park, Remember You're Making Someone Rich'
Some high cash flow business ideas are hiding in plain sight, including parking lots that produce more than $100,000 per month. A former Wall Street private-equity investor who goes by "Kenny Finance" on YouTube shared how this business model works and what to know if you are getting started.
"Next time you park, remember you're making someone rich," he said.
A Mix Of Short-Term And Long-Term Rentals
Kenny said in the video that most of a parking lot's revenue comes from renting parking spaces, and there are two revenue sources from this opportunity. The first revenue source is renting spaces daily or hourly. Kenny said that it's typically $10 per hour or $40 for the day if you want to park in a lot.
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However, some people do not have a parking space at home and live in an apartment, so they want permanent residential spots instead of a one-day spot. It's a similar setup to a tenant renting a unit and provides predictable, long-term cash flow.
"You get to rent like cash flow by having long-term leases with parking garages," Kenny said. "The price for a spot goes for like $500 per month."
Monthly contracts offer more stability, while the revenue from hourly and daily spots is volatile throughout the week. Kenny said that parking spots perform the best if they are located near downtown, stadiums, hospitals, and airports.
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Partner With Other Companies
Kenny outlined two additional revenue streams that boost parking garage profits, which involve partnerships with companies instead of drivers who need a place to park their cars. He said that some parking lots partner with ChargePoint to offer EV charging. Parking lot owners make upfront money from ChargePoint, and then the EV charging company makes money when people charge their electric vehicles.
"They don’t earn any money from the actual charging from the ChargePoint station.," Kenny said. "Instead, this parking garage charges ChargePoint a fee every single month to have their equipment installed in this garage. The right to operate in this building costs them money.”
Parking garage owners can also use this model with solar and telecom companies. These companies are willing to enter long-term leases to install telecom towers or solar panels at the top of a parking garage. You can end up with a 20-year contract for this type of deal, resulting in highly predictable cash flow over a long stretch.
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