Land investing is one of the most overlooked but highly profitable real estate investment strategies you can implement.
Unlike traditional real estate, which involves dealing with tenants, repairs, and maintenance, land investment offers a low-maintenance, high-return opportunity.
In this comprehensive guide, we explore the best ways to make money with land investing, including passive and active income strategies.
I have personally been running this website next to my full time job for many years and have still been able to make over $100,000 in profit from flipping land.
If done right you can work it around your schedule.
Why Invest in Land?
- Low Competition – Unlike traditional real estate, land investing has fewer competitors, making it easier to find great deals.
The majority of investors are going after houses and commercial property.
That leaves less people competing for the same land and there is LOTS to go around.
According to this site, there are 1.9 billion acres of land available and only about 70 million acres is developed (That’s less than 4%).
Keep in mind that land value is also subjective to some degree.
Some of my best deals were made from people who bought their land years ago and never did anything with it. They wanted an easy out and I offered it to them, usually for huge profit margins.
- Low Maintenance – No tenants, no repairs, and minimal upkeep.
It really is that simple. If you invest in just plain land, there is nothing to do. Of course you can clean it up a bit if you have the motivation, equipment, and want to make bigger profit margins.
I once bought one of the last pieces of land in an older developed neighborhood for about $15,000 and sold it for $27,000.
The problem was it was overgrown with weeds and bamboo. I thought it was a mess (because it was).
Still, at almost 100% on my money in less than 6 months, it’s not a bad profit margin.
The guy who bought it from me had a landscaping company and all the fun heavy machinery.
He said he was going to clear it out and resell it.
Good luck buddy….
I checked a few months later.
True to his word, he flipped it for about 79,000.
So yeah. If you have the equipment and time, you can clean up what you buy and turn giant profits into astronomical profits.
Of course, you need to buy it right for that to happen.
My land investing journey started with Jack Bosch’s Land Profit Generator Course and I made all my money back on my first flip.
- Appreciation Potential – Land value increases over time, particularly in growing areas.
If you live in an area like I do (Florida), then all you have to do is make sure you don’t pay too much for the land and you’re bound to be able to turn a profit.
If you’re not having luck, at the very least you can wait for property values to go up and then list it for sale again.
The great thing is you’re going to be buying the land outright, so you have no payments and taxes on straight land is pretty cheap every year.
- Versatility – Land can be developed, leased, or resold for various uses.
I had a friend whose father-in-law passed away.
She knew I was big in land so she was talking to me about what they found when they got into his financials.
Apparently he had been buying land for years and then leasing the land to churches so they could build.
He was putting them on 30 year contracts so the money was rolling in.
His wife was an older lady and she wanted to move closer to her family after she passed.
My friend told me they met with her and told her to pick a house and she was worried about the cost.
She told me they had to literally tell her, “seriously, pick whatever house you want, there is enough money”.
I’m not sure how much the guy was worth but I thought his strategy was genius.
Top Ways to Make Money with Land Investing
1. Flipping Raw Land
Flipping raw land is one of the fastest ways to generate profit.
Investors buy land at a low price and sell it at a higher price after holding it for a short period.
- Look for undervalued land in growing areas.
- Use direct mail marketing or online platforms to find motivated sellers.
- Improve the land by clearing brush or securing proper zoning to increase its value.
The 2nd bullet on this list is the strategy Jack Bosch teaches and it works like a charm.
It allows you to talk to many land owners who are interested in selling because the letter gets them to reach out to you.
2. Buying and Holding for Appreciation
Investors who prefer long-term growth can buy land in high-growth areas and wait for appreciation.
- Research areas with upcoming infrastructure projects, business developments, or population growth.
- Hold the land for several years as demand increases.
- Sell the land at a premium once appreciation peaks.
If you have inside information on the path of growth anywhere, this can be an incredible strategy as well.
Again, if you buy at the right price you should be able to turn a profit.
If the path of growth comes your way, it just increases your profits.
I once bought a piece of land on a 2 lane road and a few months after purchasing it I got a letter informing me Florida would be expanding that road to a four lane highway.
I bought it for about $1,500 including closing costs (yes, you can buy land that cheap and it’s how I had to start because I didn’t have a lot of discretionary income… which is why I was investing in land).
Anyway, I was able to sell it through a realtor for about $35k.
You read that right… $35,000. There’s no other investment I know of that you can make those types of margins.
It doesn’t happen all the time, but it happens more than you would think.
3. Leasing Land for Passive Income
Instead of selling land, leasing it to businesses, farmers, or individuals can generate passive income.
- Agricultural Leases – Lease land to farmers for crop production or livestock grazing.
- Commercial Leases – Rent land for billboards, cell towers, or parking lots.
- Recreational Leases – Lease land for hunting, camping, or outdoor activities.
I’ve never actually done this one but I’ve thought about it.
There are acres and acres of solar panel farms going up in my area and my guess is they are leasing the land.
If I ever get a large enough section I may just try to drum up something like that.
Passive income is a wonderful thing.
4. Subdividing and Selling Parcels
Larger tracts of land can be subdivided into smaller parcels and sold individually for higher returns.
- Obtain necessary zoning and permits for subdivision.
- Market smaller parcels to residential or commercial developers.
- Sell at a premium per lot compared to the whole parcel price.
This is also a strategy that requires a little time and sweat equity but it can increase your profits dramatically.
5. Developing Land for Profit
Land development is a more involved but highly profitable strategy.
- Build residential or commercial properties.
- Create mobile home parks or RV parks.
- Develop self-storage units or other income-generating structures.
You will likely need to have a decently large bankroll for this strategy.
In my area you’d need attorney and consultants, engineers and planners, etc.
But if you can take a piece of land, chop it up, and get it zoned for 50, 100, or 500 houses you will make bank!
Developers will pay a substantial amount for basically giving them a community blueprint that is build ready.
6. Tax Liens and Tax Deed Investing
Buying tax liens or tax deed properties can be a way to acquire land at deep discounts.
- Research counties with tax lien auctions.
- Purchase tax liens, earn interest, or acquire land if the owner fails to pay.
- Sell acquired land for profit.
7. Seller Financing for Higher Returns
Offering seller financing when selling land can increase returns and attract more buyers.
- Set up installment sales with interest rates.
- Collect steady payments over time.
- Sell the note later for a lump sum.
I know a guy on the coast who buys land in central Florida and sells it at a premium with owner financing.
A large majority of people eventually default on their payments.
He takes it back, re-lists it, and starts the process all over again.
When I say he is making bank… it’s an understatement.
Probably why he gets to live on the coast and I am still in the center of the state LOL.
Imagine gobbling up cheap pieces of land and then putting people on payments (with interest) for the rest.
This guys business model works like this.
- He buys land for $1,000-$5,000.
- He sells it and collects a down payment as close to the total price he paid as possible
- He collects payments in the $150-$500 range.
- He cancels the contract if they aren’t making payments and re-sells it again (keeping the down payment and any payments already made).
It’s seriously like he is printing money.
8. Conservation and Government Grants
Some land can qualify for government grants or conservation programs.
- Sell land to conservation groups.
- Enroll in government conservation programs for annual payments.
- Donate land for tax deductions.
9. Timber and Mineral Rights Leasing
Landowners can lease or sell natural resources on their property.
- Lease timber rights to logging companies.
- Lease mineral rights for oil, gas, or mineral extraction.
- Ensure proper legal agreements are in place.
10. Short-Term Rentals (Glamping and RV Parks)
With the rise of alternative accommodations, renting land for short-term stays can be lucrative.
- Set up glamping sites with minimal investment.
- Create RV parks with basic amenities.
- Market on platforms like Airbnb or Hipcamp.
I think this is the next generation of land investing.
Yes… it will take more work to set up and a little more of an investment.
However, it allows you to start generating cash flow from land and quickly get your money back.
Imagine you invest in a 1 acre parcel, set up a few (let’s say 5) small airbnb’s that you rent out for $150 a night. ($150 x 5= $750).
Let’s suppose for easy math you only average 50% occupancy from month to month.
That’s $375 a night average ($750 divided by 2).
Multiply that by 28 days (short month) and you’re looking at $10,500 a month.
Not too shabby.
How Much Do You Need to Get Started in Land Investing?
If this article is blowing your mind and getting your creative juices going I have done my job.
But before you get too ramped up, let’s do some planning and see how much you need to get started.
My experience has been that there is good land in about every price range.
You can absolutely buy land for $1,000 and up.
Keep in mind that you’re not looking for land that has a value of $1,000.
You’re looking for land worth 5, 10, 0r 15k that you can get at a discount.
Maybe you pay $3,000 for some land that is worth $8,000 or $10,000 (or more).
It sounds almost too good to be true but people sell land at discounts all the time just to get rid of it.
So you’ll need some money for the initial investment. Let’s call it $5,000.
If you have that, move on to step 2.
You’ll need some money for marketing and mail.
I suggest $5,000 – $10,000.
That puts your total cash needed to get started at $10,000-$15,000.
If you don’t have that. Stop here. Do not pass go. Do not collect $200.
Your job is to save like a madman until you have it.
Pick up some side jobs or a different side hustle and start learning as much as you can about land investing while you save.
If you do have that then the next step is to move forward and take some action.
This isn’t something you can figure out on your own.
I’m pretty savy and I can figure out a lot, but going through a course like the one I did was the best decision I ever made to my education.
I would say it ranks right up there with my college education except it was a whole lot cheaper and it made me my investment back faster.
Plus, it was paid off after the first deal. I’m still paying on my college loans and I’ve been out of school for twenty years (don’t even get me started on that).
Final Thoughts
Land investing is a versatile and profitable strategy for generating both passive and active income.
Whether you choose to flip, lease, develop, or hold for appreciation, understanding market trends and legal considerations is key to success.
Start by researching local opportunities and leveraging creative strategies to maximize your return on investment.
With the right approach, land investing can become a highly rewarding financial venture.
The biggest factor in your success is going to be learning to find the deals and buy the land at a discounted price.
If you’ve got the capital to start, I highly suggest you get started right away.
Here is a webinar and success stories for some more information.
Other Interesting Articles:
Land Investing vs. House Investing
11 Things to Know… BEFORE Investing in Land
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God Bless,
Jason and Daniele
