Beyond the Arches #8: EV charging station demand is soaring

August 23rd, 2023 By Emily Norwood

Featured Story

The race to remedy the EV charger shortage has begun

Electric vehicles (EVs) have been gaining mainstream popularity and are a common sight on the road – but the same can’t be said for charging stations. While EV sales have increased exponentially, infrastructure to keep them fueled has not kept pace, creating a gap between them that’s soaring. According to the U.S. Department of Energy, there are nearly 150,000 public EV chargers in the United States, and the White House has called for a push to bring that number up to 500,000.

Closing that gap will be no small feat. EV charging as an industry faces a number of challenges, including demand for more reliable charging ports, better grid infrastructure, charging station amenities, and predictable business model. In addition, progress has been slow on building the network of charging stations outlined by the federal National Electric Vehicle Infrastructure Formula Program.

However, the pieces are starting to fall into place for zero-emission mobility. Funding for EV charging station construction is becoming more readily available, including through state-sponsored grants. The state of New York, for instance, recently announced its plan to invest nearly $30 million in charging infrastructure and rebates for EV buyers, while the California Energy Commission has launched the Golden State Priority Project, which dedicates $30 million to build fast-charging stations in low-income/disadvantaged and tribal communities. Likewise, Washington State developed two programs to boost the installation of Level 2 high-speed charging stations, with funding totaling $127.5 million.

Direct investment opportunities

As the movement to augment existing EV infrastructure kicks into gear, there are growing opportunities for retail investors to get involved with startups in the clean transportation space. Here are some current attention-getters:

Power Hero
Power Hero says its mission is “to enable EV charging, anywhere.” The company’s focus is on 100 million apartment residents to fast charge their EVs at 240V at home so they don’t have to line up and wait at public charging stations. The company has developed a series of charging solutions, including mobile charging stations, an attachment that makes any Level 2 charger reservable, and a powerful compact charger aimed at urban areas. Power Hero’s offering is live on Netcapital.
Lightning Motorcycles
Lightning is pioneering the electrification of two-wheeled transportation. The company is out to disrupt the industry by providing consumers with one of the world’s highest-performance, potentially longest-range, and fastest-charging electric motorcycles. Lightning already holds the distinction of being among the world’s fastest production electric motorcycles and is well-positioned to be a future leader in this developing industry. The company is currently raising capital via Netcapital.
EV Solar Kits
Austin, Texas-based EV Solar Kits is tackling the portable power side of the EV charging challenge. The company offers a variety of kits that can be used to outfit existing vehicles for solar power generation on the go, including a commuter kit that lets you charge while you’re at work and a full off-grid fast-charging setup with an extendable panel array. EV Solar Kits is currently offering an equity crowdfunding round through its fundraiser, MicroVentures.

STR Investment Opportunities

Short-term rentals (STRs) are a flexible and often lucrative way to add real estate to your investment portfolio. Check out these opportunities, courtesy of our friends at The Offer Sheet.

Stunning bay views in Virginia

271 Marshalls Beach Rd, Heathsville, VA 22473 | $695,000

This one-of-a-kind 1940 fishing cottage is located on the Chesapeake Bay and is situated on 1.2 acres. The 3-bedroom, 1-bathroom home boasts original knotty pine wood throughout, a large waterfront screened porch, a sleeping loft, three new split units, and a wood stove for cozy winter nights.

Average daily rate: $438
Expected occupancy rate: 56%
Monthly expected income: $7,461
Monthly expected expenses: $5,266
Monthly expected cash flow: $2,195
Expected cash on cash return: 14.1%

Contemporary mountain elegance in North Carolina

1179 Evergreen Farm Cir, Waynesville, NC 28786 | $595,000

This welcoming 3-bedroom, 2-bathroom home is designed to feel expansive for entertaining, yet is also cozy for a night at home. Attractive finishes include the repurposed wood cabinetry, metal farm sink, granite counters, solid wood beams in the vaulted ceilings, strategically placed windows to capture the “living artwork” of the mountains, and an expansive wraparound porch.

Average daily rate: $361
Expected occupancy rate: 65%
Monthly expected income: $7,137
Monthly expected expenses: $4,819
Monthly expected cash flow: $2,319
Expected cash on cash return: 17.2%

A historic hideaway in New York State

13 Mynderse St, Saugerties, NY 12477 | $549,000

Whether you’re seeking a personal haven or an investment venture, this property weaves history, imagination, and practicality into a tapestry of possibilities. Located on the outskirts of Saugerties, the romantic 1865-era 2-bedroom, 1-bathroom cottage has been fully rebuilt with a standing seam metal roof, central air conditioning, a cook’s kitchen with Viking range, private outdoor space, and all new electrical, plumbing, and insulation.

Average daily rate: $301
Expected occupancy rate: 68%
Monthly expected income: $6,226
Monthly expected expenses: $4,547
Monthly expected cash flow: $1,679
Expected cash on cash return: 13.4%

More enchanting mountain living in North Carolina

20 Strawberry Ln, Highlands, NC 28741 | $350,000

Only a 10-minute drive from the heart of downtown Highlands, this 2-bedroom, 2-bathroom cottage is primed for year-round enjoyment. From the hardwood floors and warm pine interior walls, to the captivating stone wood-burning fireplace, to the secluded backyard, this property is an idyllic retreat in any season.

Average daily rate: $271
Expected occupancy rate: 59%
Monthly expected income: $4,863
Monthly expected expenses: $3,326
Monthly expected cash flow: $1,637
Expected cash on cash return: 19.5%

SMB Investment Opportunities

Courtesy of our friends at SMB Deal Hunter

Procurement business in Pasco County, Florida, serving the world’s largest companies

This 30-year-old B2B services business procures materials and goods for some of the largest companies in the world and can be run fully remotely. The owner is retiring, but the business comes with seven employees. Since it has an existing customer base and vendor relationships, potential new owners will want to do their due diligence on brand equity and reputation, as well as what contracts are in place and how sticky the customers are. | View listing

Asking price: $2,800,000
Cash flow: $570,000
Revenue: $6,230,312
Established: 1993

eCommerce home & garden brand with year-over-year growth

This eCommerce brand is catching the green thumb trend by providing gardening equipment for residential customers. The profit margins are an impressive 29% and they have a low SKU count, which makes inventory easier to forecast and manage. The business is already omnichannel with a current 65% Amazon, 17% Walmart, 13% Lowes/Home Depot/Shopify, and 15% wholesale mix. As a bonus, the seller is willing to finance 15% of the deal. | View listing

Asking price: $5,000,000
Cash flow: $1,673,000
Revenue: $5,841,000
Established: 2017

Dry cleaner & tux rental in elite Fairfield County, Connecticut

This high-margin business specializes in both dry cleaning and tux rental. It comes with a manager, and is advantageously located in a wealthy area (Greenwich is in Fairfield County) with a lot of new developments. On the dry cleaning side, the facility has the capacity to take on more business, which is an opportunity that can be realized through marketing. | View listing

Asking price: $1,500,000
Cash flow: $555,516
Revenue: $909,818
Established: 1980

Established auto paint & body shop in Atlanta, Georgia

This combination auto paint and body shop has been in business for more than 25 years and has a strong B2B focus. Its business clients include car rental companies from the Atlanta Airport as well as new and used car dealerships, all of which bring recurring revenue. The location is great – only 15 minutes from the airport. The owner is retiring, but the company comes with an existing team of 10. | View listing

Asking Price: $4,800,000
EBITDA: $1,500,000
Revenue: $4,400,000
Established: 1997

Franchise Investment Opportunities

A selection of franchises you can invest in right now

Highly profitable in-home senior care franchise in Hartford County, Connecticut

This business, which is located in a modern, fully equipped office space, has a great reputation in the community for providing high-quality, non-medical in-home care. Trained, quality caregivers cover a service territory encompassing thousands of seniors in the northwest Hartford metro area. The incoming owner does not need any experience in the medical industry to succeed, as extensive training and ongoing support will be provided by the franchisor and seller. | View listing

Asking price: $1,240,000
Cash flow: $358,552
Revenue: $2,727,068
Inventory: n/a
Established: 2006

In-home personal care for older & disabled adults in Phoenix, Arizona

Current owners are seeking to take this franchise to the next level by passing the torch to a servant-leader capable of maintaining its award-winning reputation for reliability and compassion. For more than three decades, the company has provided area families with essential care, and the owners have built a powerful word-of-mouth and recurring referral apparatus. A highly effective office team of eight employees market and coordinate home care among a caregiver workforce of more than 95 well-trained, directly employed caregivers. | View listing

Asking price: $1,875,000
Cash flow: $450,000
Gross revenue: $2,500,000
Inventory: n/a
Established: 1997

Major nationwide in-home senior care franchise in Delaware County, Pennsylvania

This franchise has many existing client accounts and a solid history of sales and earnings. It encompasses a large service territory with thousands of seniors over the age of 65. The business focuses on sending caregivers to a client’s personal home/residence to help them with daily life activities such as light cleaning, food preparation, grocery shopping, walking, and companionship. | View listing

Asking price: $1,700,000
Cash flow: $556,846
Gross revenue: $6,739,857
Inventory: n/a
Established: 2002