2 Things To Look For In A Motivated Seller

When I first started investing in real estate, I did not realize the amount of land that I could purchase with the money I had in my pocket. Sometimes, I even had the opportunity to purchase land for under $1K!
These type of people are in your state, your country, your town and sometimes in your own neighborhood. In some cases, these sellers are not going to take any action at all and it is up to you to find them. Use this as an opportunity to take the initiative and search them out!

That being said, what type of people are we actually searching for when we are looking to invest in land? Here are 2 examples:

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  • Sellers that have delinquent taxes on property.

Some people own land with no mortgages/money owed on the property, but they can’t afford the property taxes. It’s normal for local or state municipalities to foreclose on properties that don’t pay taxes over an extended period of time. Therefore, instead of losing all the money they have invested in the land by having it taken by the government, they decide to sell the investment quickly and see less money now rather than no money later.

  • Sellers that have inherited property that they don’t want anymore

People receive inherited property all the time. They don’t see this land as an asset, but rather a hassle that they would rather live without. The majority of the time these owners don’t even want to go through the effort of selling a property.  Perhaps they haven’t even been to the property and have no emotional attachments to it. This could mean they are willing to part with it for cheap to take away the nuisance of having it in the first place.

3 Reasons Why Vacant land Is A Good Investment


 “Hands-Off” Investment
Don’t worry about dealing with tenants, leaky sinks, toilets, mold, pet issues, bursting pipes, broken a/c, and any of the other late night “it’s broken again” issues.  After your purchase, the land will just sit there, and nothing happens to it unless you say so. You can create an income with your property, in which case you won’t have any maintenance upkeep and it will become a reliable rainy day fund.
With vacant land, you don’t need to “do” anything to the property.
You have the option to not touch your land at all or to make it into something beautiful; what you do with it doesn’t matter. Land will always appreciate in price over time due to population increasing and the fact that companies needing large open spaces are moving into more rural areas. The simplest thing an investor can do with their vacant land is turn it into a nature sanctuary. In which case you won’t have to “do” anything! Just allow mother nature to run her course and your lot will return to its natural state.
They aren't making anymore of it.
You can’t build large quantities of land quickly, so when progress is halted due to a lack of land, people who purchased the land in the path of growth have an awesome opportunity to make money by renting properties or by selling properties.


The Land Market & Why It’s Different

A good portion of first-time buyers and sellers of land expect the market dynamics for vacant land to be the same as a residential sale. They are NOT. When getting prepared to sell a piece of land or home lot you need to understand the difference between the land market and the existing home market.

  • Land Requires Different Sales Techniques - Having a beautiful photogenic bathroom or kitchen might be important when selling a house. Vacant land is Different. You need to understand the value of the property and how to sell it. Instead of kitchens and bathrooms, you need to start thinking about perc sites, the ability to build, and natural resources found on your property.
  • Patience Is Key -  Understand that the number of people trying to buy and sell land is only a small percentage of the population. Being patient with your investment will be your best tool for making a profit off of your property.
  • Land Buyers and Home Buyers are different - Generally, home buyers are looking for move-in-ready, renovated bathrooms, granite counter tops, and a beautiful yard. Land buyers are typically investors, land developers, or folks looking for a place to build their dream home.

All that being said, lot and land markets continue to heat up across the country. So don’t be discouraged--People successfully sell lots and land every day!

3 Hands Off Options to Make Money By Leasing Land

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Leasing land to a farmer can be a very safe way to keep your land investment. A farm is a large plot of land, with large amounts of acreage. Farms are where crops are grown and cultivated. For example, fiber farms are where raw material such as silk, cotton, wool, and hemp are produced and picked.


Another great way to keep your investment safe while still making a profit is by leasing it out to ranchers. Ranchers are always looking for large plots of land where they can create their businesses. Generally, in these cases, the most common “product” on a ranch is animals and livestock. On a ranch, you can usually find a primary residence, more than one barn, other structures needed for cultivation and maintaining animals, an agriculture section and another part dedicated only to livestock.


You can also lease your land to a hunter or a hunting club. Allowing your land to remain mostly untouched will keep its natural resources plentiful and attractive for this purpose. Renting your land will cover your annual property taxes and generally produce a considerable amount of profit. Hunt leasing to individuals is an optimal strategy if you plan on holding then selling, as you have the opportunity to make a generous amount of profit to cover land expenses while you wait for the opportune moment to sell your land.


How to Make Profit off of Your Vacant Land Investment


Considering that vacant land is one of the most limited resources in the United States, it is one of the safest and secure investments you can make. Because of the finite amount of land, and the inability to make more of it, land is becoming more and more sought after. 

Vacant land is probably the only real estate investment that does not have any cons. It’s pros are considerable: no buildings to worry about maintaining, it won’t burn a hole in your pocket with ridiculous expenses, and you don’t have to do anything with it if you don’t want to!

Being that land is becoming scarce, investors are growing more and more attracted to it. A definite benefit of vacant land is the fact that there are not buildings, meaning there is little to no maintenance compared to other common Real Estate investments. There are no leaky roofs to fix, unclogging of pipes or replacing carpet to deal with. Minimal upkeep is the beauty of a vacant land investment and if you work with a reputable seller you can generally get vacant land at a discounted price.

A couple of the easiest options to make money on vacant land are; leasing your land to a farmer, leasing your land to a rancher, selling wood from your property, renting your land to a solar company, or renting it to a hunting club. All of these options are simple ways to make a passive income off of your vacant land.

Why Invest in Raw or Vacant land?


A traditional investment portfolio might consist of stocks, bonds, precious metals, currency, or even a new form of electronic currency. But recently investors have been turning away from more “conventional” investment options and have been turning to vacant land. Friends and family ask me all the time, “Why should I invest in vacant land?” My answer is always the same simple answer, "Money!"

For hundreds of years, Land has been a priceless commodity. We need land to grow, but we never seem to have enough of it. That is why in little to no effort at all to assure a great return on investment (ROI).  The essential factor dependent on the amount of your ROI is the path of growth.

To get the best results when investing in vacant land, research the surrounding areas. Figure out the demographics, the future development plans, population, local attractions and landmarks associated with the area your planning to purchase. Purchasing a piece of land in an area where the population is prospering and growing will be your best way to solidify your investment. The value of land can slowly appreciate, similar to watching paint dry, or it can skyrocket instantaneously overnight.

It does not require a seasoned investor to understand how to make a vacant land investment. It just requires a patient and research-driven investor.

3 Things you need to know about Ranchettes


Ranchettes are not considered ranches.

    Ranches are extremely large plots of land - they can be well over a couple thousand acres - where the most common “product” on a ranch is animals and livestock. On a ranch, you can usually find the main residence, more than one barn, other structures needed for cultivation and maintaining animals, an agriculture section and another part dedicated only to livestock.

Ranchettes are not farms.

    A farm is much like a ranch in that it is generally a large plot of land. But a farm has a focus on everything agriculture-related, where crops are grown and cultivated, rather than animal and livestock-related. Farmers also have what's called fiber farms. Fiber Farms are where raw material such as silk, cotton, wool or hemp is grown and picked. The word “farm” itself can mean any plot of land that is dedicated to a specific crop, raw material or product.

Ranchettes are a hybrid between a ranch, farm, and house.

    A Ranchette is not as large as a farm or a ranch usually maxing out at 40-50 acres. Usually placed on the outskirts of a city where its far enough away to create a country living lifestyle, with the convenience of a large city nearby. These plots usually contain one house, a small garden, one to two barns and a small cluster of livestock or animals. These animals could be everything from a couple heads of cattle, chickens, goats, or maybe even a Llama or two. It’s the easiest way to have a quiet home life without living in the “sticks”.