How can I make money on land?
When investing in real estate, there are a few things you can do to help you make money on land. Here are the following ways to make money on land:
Rent It Out
Just like house rent, you can rent out your land too. First, you’ll want to make sure the land is zoned for what they plan on using it for. You don’t want any penalties for misusing the land to come back to you. Depending on the size of your land and location, a few people who would be interested in renting your land include:
Maybe you’ve acquired land with excellent agricultural potential but have no desire to become a full-fledged farmer yourself. Don’t let this potential go to waste. You must find out what your land’s per acre market is worth to rent to a local farmer. There are several ways to negotiate a deal. You can rent it for dollars per acre or a % of the harvest profits. Just do your homework to ensure you are getting the best deal possible with the least amount of headaches.
· Small Local Businesses
If the property is zoned for it, you can lease the property to a small local business to use for parking, seating, or for a special event.
· Special Events
A craft fair, a farmer's market, flea market, or even someone’s wedding are just a few of the ways to use the land. You’ll need to be sure the proper permits are in place and that you are working with reputable event organizers.
If you have an abundance of wildlife, many hunters (or hunter groups) may be interested in paying you for the right to hunt your land. These rights will likely include exclusive rights clauses but with that comes a bigger price point.
You’ll also need to layout a lot of ground rules and get it all under contract to keep these hunters from taking advantage of you and your land.
Christmas tree farms and pumpkin patches. These are dependent upon how close you are to a city population. You’ll also need to research how much competition there’s is.
However, if you do your research and it checks out this could be an excellent money-making idea. Plus it limits your lands exposure to “strangers” for a very limited number of days. Sure you might have hundreds or thousands of city slickers visiting your land, but it will only be for a month or so out of the year. If you scale the opportunity up large enough, you might be able to live off this income for the remainder of the year.
All of the manure from your livestock can be used as fertilizer to maximize the production in your garden and hayfield. So don’t waste it. If the production of manure is more than you can use, sell it to other local homesteaders who may not have livestock but have agricultural needs.
Prices can be varying depending upon local supply and demand so do your research to fetch the best price.
As a landowner, you’ll want to keep your eye on development costs. If you can find a suitable cost-effective way to develop the land yourself, you may be able to make money on land. If you wish to sell the land for a great price, find out what local buyers, developers, and builders are currently paying for land.
If you are looking to make money on land, you can schedule a coaching call with Real Estate coach SAWAND L. BELCHER.