6 Ways to Make Money With Your Land

6 ways on how you can make money with your land. I’ve been recently thinking about one of these strategies, which we’ll talk about shortly and hope to execute on it this year.

Starting with land is like an empty canvas, and there are so many ways to monetize it, but you are limited to what the local county allows.

We all know that real estate in general has been very saturated and inflated, but land is steady and still has a lot of opportunities. WHY? Because it’s not as sexy as flipping a house or owning apartment buildings. But everything starts with land, so why not get really good acquiring land and then building on those skills as you grow.

So, with that being said, let’s jump into the first way and that’s….

Flip Land

I’m sure you all have heard about buying and selling land. Essentially you simply purchase raw land under market value and resell it for more. You’re flipping the dirt. I teach this in flip academy, so feel free to check that out if you’re interested.

But ultimately you send out marketing like mail, to lots owned by sellers and make an offer around 35-50% of what it’s worth. You then sell it for more than you acquired it for and repeat.

There are obviously more steps to this and I’ve created a lot of videos on this, so make sure to subscribe and check those out after this video.

The next way to make money off land is…

Subdivide

Subdividing land refers to the process of dividing a larger parcel of land into smaller individual lots or plots. It involves legally separating a single piece of property into multiple smaller units, each with its own legal description and boundaries. This division allows for the sale, development, or use of the smaller lots independently.

With land when you subdivide into smaller lots, you are essentially increasing the price per square foot. You would obviously want to see what the same size relative lots sell for before you invest in this value add strategy.

The purpose of subdividing land will depend on the use and local zoning regulations. Some common reasons for subdividing land include:

Residential Development: which I’ll talk more about later, Land may be subdivided into smaller lots for the construction of residential homes, such as single-family houses, townhouses, multi units or less than 5 units. Each lot can be sold to individual homeowners, developers or builders.

Commercial Development: Subdividing land can also work for commercial development. Larger parcels of land can be divided into smaller lots for the development of retail spaces, offices, industrial facilities, or mixed-use projects. These lots can be sold or leased to businesses or developers.

Value add – by subdividing, getting permits to build and making sure you have all the utilities set up, builders and developers will pay a premium on this as it saves them a lot of time vs them having to do all this themselves.

Subdividing land typically requires compliance with local zoning and planning regulations, which vary by jurisdiction. These regulations are based on lot sizes, setbacks, infrastructure requirements, and access to utilities. Talk to local professionals, like land surveyors, architects, and real estate attorneys, to navigate the subdivision process.

This is a great way to increase your exit price. The next way to make money with land is one I’m looking to start this year, and that’s..

Developing

As of recently I started targeting areas where I want to build small houses or duplexes and either sell them or refix and keep them as rentals.

This is a leap of faith move and hope that it works out and becomes something that I can grow and scale. Here’s how I plan on doing it.

First I need to..

Assemble my superhero Team: Building a reliable team is important for successful house development. I first reached out to my old business partner who has experience building 15 townhomes and will split the deals with him. So that I can mitigate errors from all the things that I’m sure I don’t know. I’ll need architects, contractors, engineers, anyone who is willing to help and has experience in residential projects.

Buy the land: Once I find a lot under market value that has recently sold comps on new construction for similar builds, I’ll need to open the title, order surveys and purchase the infill lot.

Obtain Permits and Approvals: I’ll then need to secure the necessary permits and approvals for your project. This includes building permits, environmental assessments, soil testing, and any other requirements. Again, this is my first one, so I’m not sure exactly what at the moment.

Design and Construction: Work with architects and designers to create designs that work for the area. Get bids and hire a GC.

Financing: I’m looking to use the land as a collateral against the construction loan and bring on a partner who has done many deals so that we can get approved for the loan from the underwriters.

After about a year or so I’ll be ready to list it for rent or sell.

There’s a lot of work in development but it can be very lucrative overtime. The next way to make money off land is..

Seller finance

This is similar to flipping land, but instead of selling it for a quick cash flip, you could act like the bank and owner finance it to your buyer. The buyer makes payments to you every month until the lot is paid in full with interest.

The benefit of this is you will get some passive income and will make more on the lot over time than you would have made by simply selling it for cash.

This is a great way to get predictable cash flow and I currently use this strategy and make about 5K a month on my land notes.

The next way to make money with land is…

Campsite/recreation

Buying land for a campsite or for recreational activities can be a great way to make money.

Campsites offer an affordable experience during weekends, summer and holidays when people take vacations and plan outdoor adventures.

If you provide a great camping experience, visitors are likely to return, leading to recurring revenue. Building customer loyalty through excellent service and amenities can result in a strong base of returning campers.

You can really monetize it by offering goods and services beyond basic site rentals. This can include selling firewood, camping supplies, food and beverages, offering equipment rentals, organizing outdoor activities, or partnering with local tour operators. These additional services can contribute to your overall revenue.

It’s important to note that the success of a campsite business depends on factors like location, market demand, competition, amenities, marketing efforts, and the overall camping experience you provide.

Do some market research, get to understand your target audience, and create a business plan to increase your chances of success.

The next way to make money from land is…

Rent for storage or parking.

Buying land and using it as a parking storage facility can be a viable way to generate income.

Storage facilities for cars are recession proof and is Increasing Demand: As areas grow and parking becomes scarce, the demand for parking storage solutions increases. People with limited parking space at their homes or businesses need off-site parking options.

Parking storage can be used by individuals, businesses, long-term or short-term parking for their cars, boats, RVs, or semi-trucks.

Here’s why I like this business model…

Predictable and recurring Revenue: Parking storage typically involves monthly or annual rental agreements, providing a steady stream of recurring revenue. Once customers have parked their vehicles, they are likely to continue renting that space, creating a sustainable business.

Minimal Operating Costs: Operating costs for a parking storage facility can be relatively low compared to other businesses. Once the land is prepared and the necessary security measures are in place, ongoing expenses may include basic maintenance, insurance, and utilities.

Scalability: Depending on the size of the land, you can adjust the number of parking spaces available. If demand increases, you have the flexibility to expand your parking capacity, thereby accommodating more vehicles and generating additional revenue.

Upselling Opportunities: You can offer additional services to the customer experience and value. Like covered parking, 24/7 security surveillance, or even detailing can justify higher rental rates and attract more customers.

It’s important to consider factors like location, accessibility, security measures, competitive pricing, and marketing efforts when establishing a parking storage facility. Understanding the local market, researching competitor offerings, and providing excellent customer service are essential for attracting and retaining customers.

Overall excellent strategy to make money off of the land you own. There are just sooo many ways to make money on land, and a lot more that we have even covered.

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