So if you don't know who I am, you can find my story all over the internet. I vlog on youtube about land investing and run several online businesses (just google my name Nicholas Coriano). In a recent vlog, I listed some ways to make money investing in raw land. The video has gotten positive response, you can see the video below, so I wanted to transcribe it here (sorry for any typos in advance, it was transcribed by a computer):
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Welcome back to another episode of "An Entrepreneur's Journey" today. I am going to talk about all the ways you can make money from raw land. So in my last video I told you guys why I invested in land basically because I didn't have enough money to invest in houses and homes, I didn't have the criteria, the time, I was tired of waiting and it was a great time. So I don't always think land investing is a great idea just like any investments, no blanket statements over here so but if you can get it at the right price, remember guys you win or lose when you buy. So if you do your comparables and you understand the market and understand you're getting it cheaper than anyone else can get it and you understand that you can sell it for more then it's probably a good idea.
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Ways To Make Money Investing In Raw Land
Welcome back to another episode of "An Entrepreneur's Journey" today. I am going to talk about all the ways you can make money from raw land. So in my last video I told you guys why I invested in land basically because I didn't have enough money to invest in houses and homes, I didn't have the criteria, the time, I was tired of waiting and it was a great time. So I don't always think land investing is a great idea just like any investments, no blanket statements over here so but if you can get it at the right price, remember guys you win or lose when you buy. So if you do your comparables and you understand the market and understand you're getting it cheaper than anyone else can get it and you understand that you can sell it for more then it's probably a good idea.
But the purpose of this video is to tell you guys all the
ways you can make money using land. I have well over 12 ways that I've written
down on a little list here and I'm gonna share with you guys so let's get
started.
Flipping Raw Land
The first way is the flip method, right. Everybody knows
this, buy cheap sell expensive, right. Buy low sell high. So if you do an
analysis of the comparables in the area and you see that they're actually
selling, right. It doesn't matter you can get it cheaper if they're not actually
selling anywhere, right. So you have to be able to make sure that you can sell
it. That's the flip method. There's two ways to do the flip method, there's
wholesale and retail. So you can go to auctions or you can go online, negotiate
it with the seller, get it cheaper and then sell it to someone who's already in
the business of selling land. That's a wholesale method. Or you can go straight
to the consumer and put up ads on eBay or homes.com or commercial loopnet, land
watch, all these sites where you can sell land. So that's a retail method. They
also have... That's just a straight flip, right. So you buy for $500, you sell
it for 1,000. You get a land as cheap as $100, $150, right. So that was my
biggest concern when I was starting. I didn't have enough money but I had an
online blogs and I could come up with150 bucks so that's how I started
acquiring land and usually the profits are between 400 500 1000% depending on
what you get it at. So that's the flip method.
Selling You Raw Land via Land Contract
The other flip method is a land contract where you can sell
it to someone for $99 down, $99 a month, right, for 10 months. So this is for
someone who doesn't, maybe you're trying to sell it for $1,000, someone doesn't
have the whole $1,000 but willing to give it to you on land payments. Great way
to create a stream of income. So that's the land contract. So we got flipping,
we got the land contract.
Utilizing The Option Contract in Raw Land Deals
I have the option contract, this is a underutilized tool.
This basically gives somebody the option to hold the property but what's pretty
cool about this is if you have people that are on the fence and you're waiting
for income, no one's coming around to buy your land but someone says,
"Would you hold it for me?" I'd say, "Yeah sure. Give me 50
bucks, give me 100 bucks, give me 1,000 bucks." Depending on the parcel
and the asking price, right. And I'll hold it for a month, two months, three
months. If they don't buy it, if they don't come back and buy it for the
predetermined price... So an option contract works like this, I have a piece of
land for sale for 1,000 bucks and I say I'll hold it to you for 50 bucks for
the next 30 days. If they don't come, the 50 bucks is yours. If they come and
buy it, they still have to pay you the 1,000 so it's a win-win situation.
Farming Leases on Raw Land
Farming lease, so if you guys, I don't care if you're in the middle of the desert or you're in the hills or in the mountains, there's farmers out there and they will lease your land to grow crops, to house their animals, whatever that may be. That's a great way to keep the asset, pay down the taxes, and have income coming in. So that's a farming lease.Making Money Selling Mineral Rights from Land
Minerals, there's a lot of minerals on your land, right. So
I own land in upstate New York, they have timber there in the form of trees,
right. Loggers actually paid me to come and take down some of the trees in
exchange for some money and some lumber. I actually bartered a deal there but
there's value in the trees. So my point you can sell the trees as timber, dirt,
if there's dirt on the ground. If you are in the middle of the desert, this is
different. You can sell the sand but same thing, dirt, sand, right. These are
all things resources that you're gonna buy a Home Depot or Lowe's so you can be
the actual supplier there. Stone, right, that's another one. So in the
minerals, right, timber, stone, dirt.
Monetizing Land through Development Deals
Development deals, that's another one. I'm not going
to even number these, I'm just gonna go through. Development deals so that's
where partners, right. So if you know a construction company, a home builder, a
carpenter, a handyman even, these are people that you can do development deals.
You can you know, have a house built on the property and sell it for more, you
can have a hotel built on the property and sell it for more. Depends on who you
partner with, where the land is, how much it's worth, and what resources the
other partner brings to the table. Well development deals are great, they also
call these joint venture deals. It's basically just a deal, right. A
partnership with someone who has probably the building capabilities to develop
the property. It could be anything, right. It could be, maybe there's a guy
that you found that puts down asphalt which he maybe could build a go-track for
you, right, a go-cart track for you or a parking lot which is actually one of
my other ones that we can get to. So development deals both commercial and home
building.
Turning Land into Campgrounds
Campgrounds, I think this is great for a lot of people that have
land in the woods or in the desert. There's a lot of, I don't wanna call them
apes, but people that love the outdoors campers, right. Like me I love camping,
it's part of the reason why I love my land investments. I go to upstate New
York all the time and camp but you can actually rent it out for camping.
Something interesting I've seen is people renting it out for camping on the
Airbnb. So going to Airbnb and time sharing it out, right, say in the month of
July you guys get to camp there, the month of August you guys get to camp there
and it's $100 per month, right. So you can break that down.
Other Ways to Make Money with Raw Land
Then I'm gonna run through this other list which is just
really quick, just other ideas. Cemeteries, right. And I'm gonna give you guys
a tip on how to actually get these things approved at the end of this list. So
cemeteries, flea markets another thing you can do on raw land, parking lots
depending on where the land is, RV storage depending on where the land is, or
just any kind of store. Sometimes big boat storage, right, they don't have
anywhere to put it, farmers markets if you're in the middle of in the woods,
billboard rentals if you're along any kind of road really and some of those
rentals, some of those billboards you can put up for your own businesses which
is interesting. So it may not be that you can generate income for somebody else
writing a billboard but it may be you're putting up a billboard on the land and
you're driving traffic to your own business. Cell phone tower leasing, so big
major cell phone towers cellular providers, Sprint, Verizon, T-Mobile, they
lease towers,right. They lease the space from these towers. The more in the
middle of nowhere you are and if you don't have service somewhere and you go up
to your land and you don't have cell phone service, that may be a really good
idea, right, because they are always trying to get to where there is no
service. So always trying to have a nationwide coverage. Actual farming, so you
can actually make money from growing vegetables there or plants. I like
perennials, I like flowers, just because I don't have to take care of them so I
do that on one of my New York properties. It's a long term investment, right,
if in 10 years I have a couple thousand flowers and I can get a $10,000 check
for it would be great. Small stocks so a lot of people raise animals on their
land, right. You can actually raise chickens or smaller stock, something that
you can take care of. That would go again with the joint venture idea, right.
So finding someone to actually work at 40 so it's a little bit more passive but
those are all ways to make money with raw land.
And the great thing is there's no tenants, it's really
alternative, there's not a lot of people looking at it currently. There's more
today than yesterday as everything but here's a quick tip. I wanted to give you
guys a quick tip on how to get any of those things done. So you talk about
building a campground on a joint venture and my zone for that and my license
for that, how did I bring electricity? You can have all these questions. Or
where do I find the properties? And I have a basic rule for you guys, always go
back to the county or the city or the township and go to town hall, that's the
man, right. So you don't need to listen any more tapes, pick up the phone, call
the...it's either the Treasurer in that County or the Planning and Zoning
Department but generally if you call Town Hall and you ask them what you're
looking for like, "Hey, I wanna know you know, what it would take for me
to put a campground here. Or hey I wanna know what it would take for me to put
electricity here or for me to subdivide." That's another one that I don't
know if I hit which was yeah so subdividing. So if you subdivide property up 10
acre parcel, you subdivide it into quarter parcels, they'll make you a lot more
money by subdividing but any of those questions usually can be answered with
the county or the town that they're in so if you call their City Hall, they're
gonna have all that stuff on record. It's also a great place to buy land,
sometimes they have overstock where the taxes are back due, they can also tell
you when the auctions are in that category, in that area.
But that's really all the ways that I know how to make land.
I'm sure there's more. If you have some or if you've done some put them in the
comment section below, I wanna use the forum on YouTube to help other
entrepreneurs succeed. Those are all the ways to invest in raw land that I've
seen, that I've thought of and some of them that I've monetized, some of them that
I'm still playing with. Follow me on Twitter @NicholasCoriano,
N-I-C-H-O-L-A-S-C-O-R-I-A-N-O. See all my land for sale at homeskape,
H-O-M-S-K-A-P-E.net. See me blogging about building a tiny home at homeskape.com
and we'll tune in next time for "An Entrepreneur's Journey", I'm not
sure what we're going to talk about next time but we are gonna make some more
videos about land investing so I hope this was helpful. Share with your friends
if you guys think it's helpful. If you have any other questions put it in the
comment section below or hit me up on Twitter and thanks again guys for joining
another episode of "An Entrepreneur's Journey" where i document and
journal all the things that I've been doing in the business world.
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See my land for sale at homeskape.net
Follow us on Twitter www.twitter.com/homeskape
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See my land for sale at homeskape.net
Follow us on Twitter www.twitter.com/homeskape
Like us on Facebook www.facebook.com/homeskape
