If you're looking to invest in real estate to get decent returns, land should be your priority. Investing in land is an excellent way to make money without any loss.
The average cost of land per acre in the United States was $4,420 in 2021. Moreover, you can find rural land for sale in Oregon, Florida, Arizona, and other states at cost-effective prices. Several common reasons to purchase land can be to build a house, grow crops, or for commercial purposes.
There are a handful of ways to invest in land and make money without much risk. Nonetheless, land investments can be tricky for beginner investors.
If you're a beginner investor looking to kick off your land investments journey, you are in the right place. In this blog, we will talk about the most effective ways to make money through land investments.
The demand for raw land has been increasing due to its ever-increasing value and scarcity. Land has incredible potential for high returns.
Owning land is the first step to start earning from your land. So, let’s take a look at the crucial steps of buying land!
Determine Your Investment Budget and Uses
Budget is the first thing you would need to consider to kick off your land investment journey. It is essential to plan the budget carefully to create a profitable land investment strategy.
There are plenty of land investments options when you have no budget constraints. However, Beginner investors may have a small budget to make their first land investment.
Determining the budget as per your needs will narrow down the land investment options. Most importantly, you have sufficient funds to acquire the right piece of land.
Once you determine the budget, you can start searching for land for sale.
Even if you are certain about buying land, it can be overwhelming to decide the right type of land. Online land listing sites include farms, ranches, undeveloped land, waterfront properties, and hunting land. Thus, it’s essential to figure out the best land use before buying any property.
Find Land for Sale
Land buying opportunities are not difficult to find if you know where to look. Thankfully, you can find land for sale with the help of real estate agents. Online sites are the best places to find and buy land as per your budget.
Shortlist the top five sites that have huge databases of different types of land. You can find well-priced land from different sites and compare your options. Select a price range and location to find the land deals that fit your needs.
Choose land from a trusted seller who gives instant equity and a money-back guarantee. Furthermore, check if the seller financing option is available in case you have insufficient funds or do not qualify for a mortgage.
Purchase the Right Plot of Land
Last but the most important step is buying the property to get its legal ownership. We recommend buyers perform due diligence to acquire the land. Organize your financing and prepare the required documents to close the deal.
Here are some creative ways to make money from land investments:
1. Buy and Sell
Selling your land is the most common method to make money. When you buy land in a good location, it's more likely to appreciate quickly. You may receive plenty of offers and can sell it off at a good price.
You can develop land for certain purposes to make it more valuable to potential buyers. Moreover, you can hold your land for extended periods to generate sky-high returns.
2. Land Flipping
Flipping land is one of the best ways landowners can earn a decent amount of money. It is much the same as house flipping.
Investors can select a valuable land parcel and buy it at a significantly low price than its market value. Later, they can sell it off at a higher price to gain profits with lesser risks.
Beginner investors can leverage the benefits of land flipping to create a solid foundation for their future investments. However, it's essential to have the skills and understanding to spot profitable deals.
3. Buy and Hold
Buy and hold is a financially rewarding investment strategy. Investors can purchase vacant land according to their budget with the plan to hold it for a long period. On top of that, there's an option to rent out the land for a specific purpose and generate steady cash flow.
This method of land investment does not only open passive income streams but also bestows long-term gains with minimum risk.
Investors who may purchase a property through a mortgage can rent it out to generate rental income. By doing this, they can use the earned rental income to pay off the mortgage in full within a short span.
4. Buy and Lease
Land ownership offers various opportunities to build wealth. Leasing out land is one of them. Landowners can utilize a buy and lease strategy to produce consistent income for prolonged periods.
Landowners can lease out their land for different purposes. For instance, farming, hunting, or commercial purposes depend on the land type and size.
If you own land which is fertile and suitable for growing crops, leasing it out for agricultural purposes is the best option.
On the other hand, investors who own woodland or vacant land with easy access to water can lease it out for hunting.
5. Use Land as Boat Storage
If your land is located near a lake, river, or popular water body, you can allow local boat owners to store their boats.
Boat owners are required to pay over $125 every month at storage facilities as on-street boat parking isn’t allowed.
Local boat owners who need space to store their boats during winters can utilize your land. You can earn a decent amount of money using your land as boat storage.
The Bottom Line
Besides, landowners can make money through farming, camping, using their land as RV storage. You can lease your land for property for natural resources or energy to earn money off your land.
However, if you’re planning to develop land to build a house, rental units, parks, or commercial units, you'll require extra funds to accomplish your goals.
APXN Property is the most trusted and fastest growing rural property platform in USA. They have developed a peer-reviewed and easy-to-use platform that provides low-cost rural land buying opportunities across the United States.
