How to Make Money by Investing in Land

When people think about real estate investments, rental homes and commercial properties are what comes in their minds. But what about land? There are many assumptions about land investments. Some say it is a boring one and others say that it does not produce income. But those are unfortunate misconceptions because lands can generate some serious cash flow.

Vacant land is one of the most overlooked real estate investments. For most people, they buy a land solemnly to build a home. But some investors see beyond the typical four wall building. And instead invest in their lands. Here are some tips on how to make money with land.

1. Buy and Wait for the Value to Go Up

You don’t need to make money with vacant land. All you need to do is to sit and wait until the value of the land goes up, then you can sell it and make huge profits. Vacant lands just ‘sit and behave’.

You don’t have tenants to deal with or renovations required. You just have to wait for the opportune moment to sell it at a higher price. It may take a while for the value to go up but once it does, you can be sure of some serious cash.

2. Lease to a Farmer or a Hunter

If you get yourself to a good and productive piece of land, you have found a good investment. Farmland produces much profit than any other land. Although a farm may be expensive and harder to start, in the long run, it will surely pay off.


Hunters are willing to pay for the right land. So if you think you have the kind of land that will attract them, then you can invest in that. Leasing returns huge amounts of money to cover for tax, insurances and on top, you get profit there after.

3. Rent out a Home

Rentals have over the years proven to be among the best investments. Especially with the cost of living going up, not so many people can afford to buy a complete house or buy land and build their house. When you have vacant land somewhere, you can construct homes and rent. There are tons of creative structures to set your rental apart including tiny homes which are rapidly gaining popularity.

4. Flip the Land

Flipping your land could be a great way to get a good deal on a piece of land. It is easier and cheaper to flip a raw land than any home remodel. Flipping options include; clearing the land to make it easier, surveying and marking the land or even turning a recreational property into a building site.

Flipping can get your investment to sell within a short time. However, flipping highly depends on the area you live in.

5. Offer Seller Financing

People want to buy land, but most banks would hardly lend money on vacant land. You can take advantage of this opportunity as a land investor and offer seller financing to a buyer. And charge higher interest than the market interest rate. You will be surprised to find out that many people will gladly pay. Seller financing is also an excellent way to create different streams of passive income.


Land investing is a huge opportunity for the right person. However, before you buy a piece of property, there are certain factors you should consider. Such as zoning laws and environmental concerns if any. Remember that investments take time and land investment is no different. So you have to be patient.