The right investment in raw land is a strategic and rewarding decision to make. How can you make money with raw land? We have the answers.
What activities can you do with your raw land to make money? Will the rate of return on investment be worthwhile? What tips do you consider before you use your land in any activity? What are the pros of each activity, and what are the chances of making ideal profits?
There are several ways you can use your raw land to make money. These include; leasing land for farming, solar energy investment, and cell tower installation, creating recreational areas, lumbering, livestock keeping, and creating boat storage areas and recreational vehicles parking spots.
This article will examine some of the simple and efficient activities you can do in raw land and whether it is worth it. It will also outline and discuss each activity's pros and other tips you should consider before putting the land parcel into a particular activity. Therefore, if you have a plan to buy raw land but are worried about what kind of activity to use the parcel for, this article will guide you on this.
The main goal of this article is to offer you up-to-date, trust-worthy, and authentic data and information. Our dedicated team of experts have worked together to ensure that the content you receive is credible. Therefore, when you visit our resources, we can assure you that the information we prepare will benefit you immensely.
Table of Contents
Raw land, when used rightly, carries a lot of potential when it comes to the possibility of getting high returns. However, you may not start earning an income right away, you will need to be patient. Patience is a virtue that cuts across the board, whatever the industry or the niche that you will deal with.
One can easily make money from raw land depending on its location, the available resources you can tap into, and how much one wants to invest. It will also depend on the size of the land and its potential for certain activities. It is essential to research the land's potential before using it to avoid making losses. For instance, one may decide to invest in real estate only to find out the area restricts the construction of residential homes and is only for commercial use. Therefore, take note of the land's size, geography, location, zoning, and other characteristics that will affect the activities you can accomplish with the parcel.
How to Make Money with a Raw Land
Land leasing is a common and popular way to make money from raw land if one does not want to sell the land parcel or is waiting for future markets to appreciate and sell it for a profit. When it comes to land leasing, there are different kinds of individuals or companies for which one can lease the land. They include:
Leasing Land to Telecommunications Company
Throughout the world, mobile phone providers seek new and improved ways to serve their clients by enabling them to access 5G services. It indicates that the company is advancing and growing consistently. Therefore, the best option to make money is to lease the land to such a business since the company will require installing systems that will provide the network to different places.
The best aspect is that this money is entirely passive, and any upgrades or changes to the land are not subject to your reviews. The company may set up one or more network towers on the property for a predetermined period after you have finished the necessary paperwork. Remember that before you finalize the deal, go through the contract outlining the compensation you will receive.
Leasing Land for Solar Investment
In today's world, sustainability permeates almost every aspect of our lives. That is why if one is considering how to generate income from land, going for a solar investment is wise. If one has the means, one may run their solar energy project and put up the necessary equipment, such as the solar panels on the property.
After that, one can generate a revenue stream by distributing the power produced. However, in addition to the cash you put into buying the land, this strategy will require a sizable initial expenditure. Alternatively, one may lease the land to the most prominent solar energy developers. Such businesses are constantly looking for raw land parcels to carry out their operations.
Leasing Land to Farmers
Another ideal way to make money is to lease the land to small-scale and large-scale farmers. If the land is sizable, one may split it into subdivisions and then lease them to small-scale farmers, whereas if the farmers want to farm on a large scale, one may lease the land as one parcel. It is essential to have a contract signed to have details on the amount to pay and the period of farming to avoid disagreements later on.
Livestock Keeping and Farming
If one does not want to lease the land for farming, one can decide to farm by themselves and keep livestock. One can start farming plants such as vegetables if the soil and climate are favorable. Even if the previous owner didn't utilize the land to farm crops when one bought it, one could remodel it to serve their needs. If the land is large, one can decide to hire workers to farm and plant or buy equipment such as plowing tractors and other machines to help you farm easily.
When it comes to livestock keeping; you can pick from a wide variety of domestic animals, including chickens, sheep, horses, and cows among others to keep and sell their products to the market to generate income. One can venture into bee farming and sell honey and wax to the market. One can combine flower farming and bee farming and sell both products since bees play a crucial role in pollination.
For many individuals, lumbering is a full-time profession. If the land has a sizable amount of trees, one can decide to cut trees and sell its wood. But before you begin the activity, confirm with the relevant authorities if any restriction laws may forbid cutting the trees down to avoid conflicts. The price of an ideal timer per acre of land can range from $500 to $ 5,000, depending on the type of tree and species. Remember that the authority requires you to guarantee them that you will sustainably harvest the trees. Therefore, one requires to pay for wood management.
RVs Parking Area
For affluent families, using recreational vehicles is the fate of weekend getaways and farmhouses. The majority of the families, however, do not have enough area to put the RVs on their private property. Therefore, if one is considering making money using raw land, providing a parking lot for RVs can be an ideal opportunity.
To determine whether the property is suitable for commercial use, examine the city's zoning regulations. If so, all one needs to do is to fence the area, appoint one or more caretakers and then promote the parking lot. Due to the high cost of RVs, their owners are constantly anxious about their safety. If one can give them the security they require, they will pay you a monthly parking fee of $100 to$200.
Even if the land parcel can only fit 10 to 20 RVs, that still translates into a passive income of $100 to $2000. Additionally, one might think about developing a covered parking lot on the property after having a reliable income stream to boost the earnings. Before putting this pan into action, check the building permissions or code of the area. One can raise the fee to roughly $500 per RV if one is permitted to build a covered space.
Boat Storage Area
If the land is located near a waterbody where people use boats for transport, fishing, and other activities, one can decide to put a boat storage area. Many people are looking for reliable storage facilities due to the rising interest in recreational and luxury vehicles. Although one can use the property to store other machines, boats are the most successful income generation because other vehicles are frequently used year-round. In contrast, individuals must store boats for the winter duration.
Therefore, the more the boat stays on your property, the more one will charge. Ensure the land is safe and suitable for hosting boats and sheltering them from any elements that may damage them. With this strategy, one may get $150 to $ 300 every month, depending on the location, size, and construction, among other factors.
Individuals in urban areas need to relax after a long work period by going to other recreational places away from the busy urban areas. One can transform their property into a community garden or recreational area to accommodate them. Even though one will require a permit to carry out this plan, getting a go-ahead is simple if one promotes public leisure areas. One will need to spend money to plant trees, create walkways, and put up suitable fencing to enclose the area, among other activities. Once finished, one can make some income by charging an admission fee for each guest and parking and accommodation fees.
Wrapping it Up
It can be challenging to decide on how to generate income from raw land as an amateur trying to diversify his or her portfolio. However, when you learn the best activities to implement, this is something that you will be able to do. You can earn from raw land in many ways, but before you begin your activity, be keen on other factors, such as building codes and restriction laws.
About THE AUTHOR
Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.Read More About Brittany Melling