Investing in raw land is one of the most overlooked but powerful wealth-building strategies in real estate.
With no tenants to manage, fewer moving parts, and potentially higher returns, land can be a hands-off and highly profitable investment when done right.
But for beginners, the question remains: how do you actually invest in raw land?
In this in-depth guide, we’ll cover everything you need to know to get started — from picking the right location and understanding the budget to closing the deal and selling your land profitably.
I’ve made a lot of money doing this on the side and it’s actually a FUN way to make money.
I will cover how to find the land in this article, but for a more comprehensive look at that aspect, you’ll need to check out my in depth article on finding land deals near you.
What Is Raw Land?
Raw land is undeveloped property with no improvements — no buildings, utilities, or even roads in many cases.
It’s a blank canvas that can be held long-term, developed, or flipped to other investors or end-users.
Unlike houses or commercial buildings, raw land requires a different approach to valuation, due diligence, and exit strategies.
That’s why proper education is key before you invest your first dollar.
Step 1: Choosing the Right Area
Location is everything in real estate — and this is especially true when it comes to raw land. Here’s what to consider when picking the right area:
Population Growth & Development Trends
Look for areas experiencing population growth or urban sprawl.
These locations often have increasing demand for housing, recreation, or commercial use — all of which boost land value.
You can use AI to find these types of areas or do a deep dive into the research yourself. Additionally, if you’re investing in land near you, you probably already know some of the best areas to focus on.
Great indicators:
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Expanding highways or infrastructure
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New subdivisions or retail centers being built
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Proximity to major cities (within 1-2 hours)
Zoning and Land Use Regulations
Before purchasing, research how the land is zoned: residential, agricultural, industrial, or commercial.
Some rural properties may have no zoning, which allows flexibility — but can also attract unwanted neighbors or activities.
Use the county’s GIS mapping system or zoning office to investigate:
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Permitted uses
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Minimum lot sizes
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Environmental restrictions or flood zones
Access and Utilities
Even raw land should be reasonably accessible — either by public road or legal easement.
Also, check how close utilities are (electricity, water, sewer, internet), even if you don’t plan to build.
These factors greatly influence resale value.
I never realized until I started investing that there is quite a bit of land out there that you can buy… but you can’t get to.
Be careful of this when purchasing.
In my county the code is “inaccessible tract”. It literally means it is inaccessible (it’s even in the name).
However, that being said, the world is changing.
I am considering investing in some of these tracts of land because you can get them really cheap and whose to say in 10 or 20 years people won’t be able to just fly a drone car out to their property and land on it…. something to think about.
If you have cash to burn and can wait for a return, this might be the way to go.
Step 2: How Much Money Is Needed to Invest in Raw Land?
One of the best parts about land investing is the low barrier to entry — you can start with as little as $1,000 to $5,000 in rural or distressed areas.
However, most quality deals range from $10,000 to $100,000+ depending on size and location.
Typical Costs Involved:
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Purchase Price: Obvious but varies widely.
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Closing Costs: Title insurance, escrow fees, recording fees ($500–$2,000).
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Due Diligence: Survey, perk test, or feasibility studies ($300–$2,000 if needed).
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Taxes and Holding Costs: Annual property taxes, HOA fees if applicable.
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Optional Improvements: Clearing, fencing, installing a driveway or utility access.
You can finance raw land through seller financing, private lenders, or land-specific banks like Farm Credit or regional institutions — but cash purchases are common for simplicity and negotiation leverage.
Step 3: How to Close a Land Deal
With a Realtor
A real estate agent can help you:
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Find land listed on the MLS or land-specific platforms
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Coordinate showings or site visits
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Negotiate terms and submit contracts
If you’re new to land investing, working with a land-savvy agent (ideally Accredited Land Consultant, or ALC) can save you from costly mistakes.
On the flip side, using a realtor does a few negative things.
First, it limits the types of properties you can buy and often takes the real deals off the table. After all, if you’re buying a piece of land for $1,000, there isn’t much motivation for a realtor who works on commission.
Secondly, if you’re on the buying side and it’s listed with a realtor it’s highly unlikely it will be sold well enough below market value for you to make a good profit.
That leads me to my favorite way to buy and sell which is to use a title company.
Use a Title Company
Even if buying off-market, always close through a reputable title company or real estate attorney. That way they can do the following to protect you from making costly mistakes:
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Perform a title search to ensure no liens or encumbrances
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Handle escrow and payments
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Issue title insurance to protect your investment
This usually costs $500–$2,000 but is worth every penny for peace of mind.
On Your Own (DIY Closing)
For small deals or in rural counties, you may be able to handle the closing yourself:
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Draft a basic land purchase agreement.
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Collect a cashier’s check or funds via escrow.
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Prepare and notarize the deed (usually a warranty or special warranty deed).
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Record it with the county recorder’s office.
Note: You should only do this if you’re confident in your due diligence and the seller’s legitimacy. There are risks involved without title insurance.
I personally don’t do it this way simply because paying a title company who has experience and all the software and contacts needed to do this properly is well worth it to me.
Also, I found out in some of my early deals that people want title insurance when they buy.
So if you already have it or got it when you purchased, it makes it a smoother process and can sometimes save money on the sell side.
I also found out the true value of title company one time when there was an error in ownership and title insurance saved my behind and my wallet.
This error came up long after I had bought the property when I went to sell it.
The title insurance I had allowed the title company to do all the work necessary to clear it up and it didn’t cost me a dime.
Step 4: Types of Land to Consider
Different land types serve different investor goals. Here are some common categories to consider focusing on:
Residential Lots
These are parcels in subdivisions or residential zoning areas. Ideal for:
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Buy-and-hold appreciation
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Building a home
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Selling to builders or developers
Agricultural or Rural Land
Larger parcels used for farming, timber, or recreation.
Often very affordable and can be flipped or leased to generate income.
Raw Commercial Land
Zoned for retail, industrial, or office development.
These deals can be lucrative but require experience due to more complex zoning and environmental regulations.
Recreational Land
Used for camping, hunting, ATV riding, or tiny homes.
High demand from outdoor enthusiasts or for short-term rental use (glamping, RV pads).
Infill Lots
Vacant lots in established neighborhoods.
Builders love these because utilities and infrastructure are usually already in place.
Some of my fastest flips have been done by finding undeveloped parcels, buying them, and then contacting builders in the area and flipping it to them.
Step 5: How to Find Land Deals
MLS and Realtor Listings
Use platforms like Zillow, Redfin, Realtor.com, or LandWatch.
You can also work with agents who specialize in land to get access to pocket listings.
Direct Mail to Owners
One of the most powerful off-market strategies: send letters or postcards to landowners in a target area offering to buy their land.
Many are absentee owners willing to sell at a discount.
Use public property records or software to build a mailing list.
This is my go to method and I learned it from going through the Jack Bosch land investing program.
It’s not a cheap program but I looked at it like education and it paid itself off with my first deal.
Tax Delinquent Properties
Counties often auction or list properties where taxes haven’t been paid.
These can be acquired cheaply — but be cautious of title issues or legal complexities.
Land Flipping Platforms
Sites like:
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Land.com
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LandWatch
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LandFlip
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Land Century
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Facebook Marketplace
These platforms cater specifically to land investors and buyers.
Just be careful that you’re buying something cheap enough to make profit or you have a plan to add value (clear the land, subdivide the land, take better pictures, all of the above, etc.)
Driving for Dollars
Physically drive through rural areas or fringe subdivisions to find vacant, unloved lots.
Jot down parcel numbers or addresses and research the owners.
Step 6: How to Sell Your Land for Maximum Profit
Once you own land, there are multiple ways to sell it — depending on your timeline and strategy.
Using a Realtor
Pros:
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Access to MLS and wide exposure
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Agent handles negotiations and contracts
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Ideal for higher-priced lots or complex properties
Cons:
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Commission fees (5–10%)
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May not market as aggressively as you’d like
Paid Listing Services
You can list your land on paid platforms like:
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Land.com Network (LandWatch, Land And Farm)
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LandFlip
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LotNetwork
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Craigslist (for local traffic)
- Multiple listing service
Some of these offer featured spots and SEO tools to boost your visibility.
Prices range from free to several hundred dollars per month depending on your marketing plan.
Personally, I like using a multiple listing service.
Basically, you pay a fee (let’s say $100) and they hold a realtor license allow them to post to the MLS.
They don’t get a commission but they list your property for you and re-route all the calls to you.
If you sell a property for $30,000 and don’t have to pay a realtor commission of 6% (or $1,800) it adds up very quickly.
What I do when buyers call is explain to the them that the title company does everything but if they want a realtor on their side they have to pay for it.
Sometimes they do, sometimes the don’t.
Social Media Promotion
Social media is a goldmine for land sales if used strategically:
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Post your property in land-specific Facebook groups
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Share videos or drone footage on Instagram and TikTok
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Use Facebook Marketplace and local buy/sell groups
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Run Facebook or YouTube ads targeting your ideal buyer
Make sure your posts include:
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Clear pictures
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GPS coordinates
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Parcel size and zoning
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Price and owner financing terms if offered
Selling with Owner Financing
Offering seller financing opens your buyer pool dramatically.
Many people want land but can’t get traditional loans. Especially since it’s harder to get loans on straight land.
You become the bank and earn monthly payments — often at 8–12% interest (some people I know charge even more).
Use a loan servicing company to handle payments and a land contract (or promissory note + deed of trust) to secure your interest.
Final Thoughts: Is Raw Land a Smart Investment?
Investing in raw land can be incredibly rewarding both financially and personally.
You don’t have to worry about broken toilets, tenants, or constant repairs.
You can buy undervalued property, hold it for appreciation, or flip it for quick profits.
The key is to educate yourself, do thorough due diligence, and build a repeatable system for sourcing and selling land.
Whether you’re looking to diversify your portfolio, build generational wealth, or create passive income, land offers a unique opportunity that’s often overlooked by traditional real estate investors.
Other Interesting Articles:
Beginners Guide to Land Flipping
Ultimate Guide to Profitable Land Investing
How to double $1,000 (One strategy is flipping land and I go in depth on how to get started and the margins I’ve personally made)
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God Bless,
Jason and Daniele
