I’ve personally got land for FREE. I’ve bought land for $300. The goal is to be able to sell it for a higher amount. You’ll need to locate the land, make an offer, and try to sell the land.
Table of Contents
1. Buying Land For Cheap
Buy Land Directly at a County Auction
The goal is to buy cheap land. There are a couple ways to do this. You can go to a tax auction and get land this way. They will usually have auctions monthly or quarterly. You can ask the county what property is available for auction. Double check if the county or state is a tax deed state or a tax lien state.
Read: 15 Things to Look Out For in A Tax Auction
Send Out Mailers to Get Land
Another popular option is to mail out to owners. You can use a service like Offers2Owners. At the time of this article, it costs $0.56 a mailer to send a single or a two page document.
If you send our a mailer, they will take care of postage and the document. You just need to create a template and an excel sheet with pre-populated data.
Buy Land on Listing Sites
Another place to look at is land broker sites. You can check out LandWatch, Lands of America, Land and Farm, LandFlip, Landmodo, and individual sites.
You will be able to buy land craigslist or on Ebay as well. Be sure to check out how the deed will be conveyed. Essentially, you want it to have warranties. Basically, they are the owners and there aren’t other liens or judgments to the property.
It’s important to get it for a cheap price. Figure out the value of the price of the land. Once you have the land you will be able to figure out how much you want to spend for the property.
2. Marketing Your Land
It’s important to market your land. Some of the most important parts of the land is to showcase the property everywhere and show the value of the land. If you can sell the property for cheaper than what it’s worth, it helps selling the property.
Use Land Listing Sites to Market Your Land
You can look at those land broker sites. Usually to get exposure, you will need to pay these land broker sites to showcase your property. Craigslist and Facebook Marketplace are sites that are increasingly popular to sell Real Estate. You can get a lot of interest on these sites.
Use Google and Facebook Ads
If you have a lot of land, you may want to create your own website. You can do Google Ads or Facebook Ads to advertise your property. This can help increase your email list.
Build A Mailing List
As you advertise your land, you will get people interested in a certain area. It’s important to be able to collect these emails and put them on an email list.
This will be a list of people that you can go over and over again to buy your properties. Not everyone will buy immediately, so they can be someone that buys in the future.
3. Selling Land
There are two ways you can go about selling your land. Generally, you will want to sell it for cash or for owner financing.
Owner finance deals are a great way to build passive income. I bought a piece of land for $1000. I sold it to a buyer for $5000 and they put a $1000 down payment. I got my money back and now I have monthly revenue.
Close with a Title Company or Attorney
Typically, a title company or attorney will handle the sale of the property. They will make sure that the property is owned by the person, there is a clean chain of title, and there are no liens or judgments.
Close the Property On Your Own
In the case that there is no title company or attorney, you will need to do this work yourself. You can usually call the county to get information like the deed.
You will need the owners name and legal description to the property. You can also hire a service like ProTitleUSA to do the title search for you.
Selling with Owner Financing
Owner Financing is one of the best reasons to sell land. Generally, I use land contracts or contract for deeds. Some place really recommend doing a deed of trust. It has to do with how the foreclosure process will be handled if they don’t pay right away.
What’s important is that you are able to receive payments monthly. I usually charge a document fee, a down payment, note service fee, interest, and the monthly payments. Essentially, you act like the bank.
This means that you don’t generally deal with a lot of the issues that you might have as a landlord. The important part is this can usually compound into a sizable amount of money.
4. Repeat the Process
Just keep up with the process. Pick up property for cheap and then sell it for a higher price. You make the profit for picking up these properties.
Land has the Potential Home Run Deals
Land investor are able to pick up a piece of land for $500 and sell it for $25,000. This isn’t a typical deal, but land has that kind of potential. Home runs like these deals are possible because there is less data for land. Some people just inherited a piece of land and they don’t care for it.
Each piece of land is different. The location, utilities, amenities, and terms are highly adaptable. All these factors impact the overall value of land.
Frequently Asked Questions:
Why should I do land investing?
Land investing is great because there is potential for large chunks of cash and passive income.
So, what happens if they back out of an owner financed deal?
I got their monthly payments and their down payment. I just resell the property over again.
Why is land investing better that real estate investing?
Land Investing is better than real estate investing because it’s higher returns without the headaches of being a land lord.
