The Land Market & Why It’s Different

A good portion of first-time buyers and sellers of land expect the market dynamics for vacant land to be the same as a residential sale. They are NOT. When getting prepared to sell a piece of land or home lot you need to understand the difference between the land market and the existing home market.

• Land Requires Different Sales Techniques - Having a beautiful photogenic bathroom or kitchen might be important when selling a house. Vacant land is Different. You need to understand the value of the property and how to sell it. Instead of kitchens and bathrooms, you need to start thinking about perc sites, the ability to build, and natural resources found on your property.
• Patience Is Key -  Understand that the number of people trying to buy and sell land is only a small percentage of the population. Being patient with your investment will be your best tool for making a profit off of your property.
• Land Buyers and Home Buyers are different - Generally, home buyers are looking for move-in-ready, renovated bathrooms, granite counter tops, and a beautiful yard. Land buyers are typically investors, land developers, or folks looking for a place to build their dream home.

All that being said, lot and land markets continue to heat up across the country. So don’t be discouraged--People successfully sell lots and land every day!

3 Hands Off Options to Make Money By Leasing Land

Farming

Leasing land to a farmer can be a very safe way to keep your land investment. A farm is a large plot of land, with large amounts of acreage. Farms are where crops are grown and cultivated. For example, fiber farms are where raw material such as silk, cotton, wool, and hemp are produced and picked.

Ranching

Another great way to keep your investment safe while still making a profit is by leasing it out to ranchers. Ranchers are always looking for large plots of land where they can create their businesses. Generally, in these cases, the most common “product” on a ranch is animals and livestock. On a ranch, you can usually find a primary residence, more than one barn, other structures needed for cultivation and maintaining animals, an agriculture section and another part dedicated only to livestock.

Hunting

You can also lease your land to a hunter or a hunting club. Allowing your land to remain mostly untouched will keep its natural resources plentiful and attractive for this purpose. Renting your land will cover your annual property taxes and generally produce a considerable amount of profit. Hunt leasing to individuals is an optimal strategy if you plan on holding then selling, as you have the opportunity to make a generous amount of profit to cover land expenses while you wait for the opportune moment to sell your land.

How to Make Profit off of Your Vacant Land Investment

Considering that vacant land is one of the most limited resources in the United States, it is one of the safest and secure investments you can make. Because of the finite amount of land, and the inability to make more of it, land is becoming more and more sought after. 

Vacant land is probably the only real estate investment that does not have any cons. It’s pros are considerable: no buildings to worry about maintaining, it won’t burn a hole in your pocket with ridiculous expenses, and you don’t have to do anything with it if you don’t want to!

Being that land is becoming scarce, investors are growing more and more attracted to it. A definite benefit of vacant land is the fact that there are not buildings, meaning there is little to no maintenance compared to other common Real Estate investments. There are no leaky roofs to fix, unclogging of pipes or replacing carpet to deal with. Minimal upkeep is the beauty of a vacant land investment and if you work with a reputable seller you can generally get vacant land at a discounted price.

A couple of the easiest options to make money on vacant land are; leasing your land to a farmer, leasing your land to a rancher, selling wood from your property, renting your land to a solar company, or renting it to a hunting club. All of these options are simple ways to make a passive income off of your vacant land.