Raw Land Investing

Land investors purchase raw, undeveloped land at low prices and sell at higher prices, often with owner financing creating monthly income.

Land investing offers lower competition, no tenant headaches, and often seller financing allowing purchase with little money down.

You can flip land quickly, hold for appreciation, subdivide and sell parcels, or sell with owner financing for ongoing income.

Success requires understanding land valuation and market research, finding motivated sellers and discounted land, due diligence (zoning, access, utilities, buildability), marketing land to buyers, and potentially offering owner financing.

Profit varies—$2,000-50,000+ per deal depending on size and location.

Owner financing creates monthly notes ($100-1,000+ monthly per note).

Startup costs are relatively low—marketing to find motivated land sellers ($500-2,000 monthly), earnest money for deals, LLC and business setup, website for selling land, potentially down payments if not buying outright (land often available with seller financing), and due diligence costs totaling $3,000-10,000.

Finding deals involves marketing to out-of-state or absentee land owners, tax delinquent land owners, inherited land, direct mail to land owners, online land marketplaces for deals, county tax sales and auctions, networking with land developers, and targeting rural areas with lower prices.

Revenue comes from flipping land for profit, owner financing creating monthly income (often 8-12% interest), potentially subdividing larger parcels, wholesaling land to other investors, or holding for long-term appreciation.

Operating costs include property taxes while holding, minimal maintenance (land has low costs), marketing to sellers and buyers, due diligence costs, potentially survey and title work, and business expenses.

Challenges include land less liquid than houses (takes longer to sell), lower demand than housing, need to educate buyers about land value, some land is unbuildable or has issues (access, wetlands, easements), and requires understanding zoning and land regulations.

Success requires thorough due diligence before buying, buying at deep discounts (50-70% of value not uncommon), understanding what makes land valuable (access, utilities, zoning, views, development potential), marketing land effectively (land buyers different than house buyers), offering owner financing making land accessible and creating notes, potentially targeting specific land types (recreational, development, agricultural), and building systems for finding deals and buyers.

Land investing is overlooked real estate niche with unique advantages.