Unlocking Your Vacant Lot’s Earning Potential: What You Need to Get Started

November 30, 2020
CambridgeEntrepreneurAcademy

Unlocking Your Vacant Lot’s Earning Potential: What You Need to Get Started

Most investors are afraid of raw land. This is even though raw land is often cheaper than already developed real estate. Many prefer buying land that already has a property they can improve. This makes it easier for them to earn money after the purchase. But in reality, the numerous assumptions surrounding raw land is what makes investors shy away from investing in this kind of real estate.

Why Invest in Vacant Land

If you are still adamant about buying that vacant land you’ve been eyeing for a while now, think about the perks that raw land has to offer.

You Can Enjoy Fewer Competitions in Raw Land

Many people go after properties wanted by many buyers. As a general rule, the more potential buyers are willing to make a bid on the land, the more desirable it gets. With raw land, you have little-to-no competitors and all it takes is a bit of creativity to think of businesses you can do on your new investment.

Owners Are Often Selling Their Vacant Lots

Many people who own vacant lands don’t even live near their land nor are they currently making money for their property. They also often have no idea how to make the best use of the land and have no immediate need to turn their vacant land into a money-making machine. When one has no emotional attachment to a property, it is fairly easy for them to let go in exchange for a good price.

Some Are Even Open to Seller Financing

There are landowners who are willing to sell through seller financing. This means you eradicate the need to get a lender to loan you the amount and the process is much simpler. Note that not many banks are keen on financing a vacant land purchase.

You Can Forget About Constructions and Renovations

The beauty of raw land is that it is basically a blank canvas. The possibility of what you can do with it is virtually limitless. You have the choice to leave it as is.

There are numerous investors and business owners looking for a potential vacant lot they can rent for their business venture. This includes franchise tenants. These high-profile individuals need a suitable location to build their business on since they have no plans of buying their own land.

What to Do Before You Start Doing Business in Your Vacant Land

If you already have a vacant land under your name, then it is time you unlock its earning potential. But first, you need to consider many things before you get started. It is not enough that you know you own an empty land especially if it has been a long time since you last visited the area.

First, you need to make a physical inspection and see if your land needs clearing, cleaning, or a few improvements. Most vacant landowners who failed to maintain their lot often get the surprise of their life for finding people already made a home of out their land. Note that people have various reasons for squatting, including poverty, mental health illness, addiction, or simply as an act of protest statements.

You may think getting caught is enough to drive them away, but even these squatters can be a bit tough to get rid of. But sometimes, squatters, travelers, trespassers, or intruders won’t leave the premise despite numerous warnings. If this is the case, your safest bet is to hire a local company that specializes in effective traveller eviction services.

Experts will make sure your squatter problems will be rectified in the more professional and legal way possible. They inform legal authorities before the eviction. Some even offer fly-tipping removal and clean-up services.

Once your land is free from unwanted guests, it is wise to check zoning rules and building codes where your land is located at. This will help give you an idea of what businesses you can legally do in the area.

vacant lot

What to Do With Your Raw Land

Aside from renting out your vacant lot to franchise tenants, there are many other ways to create an income out of your land. It depends on how much work you are willing to put in as well as the restrictions imposed by your city or state. Some usual ones are as follows.

  • Rent it out to people looking for storage for their boats, RVs, or landscape supplies
  • Offer self-storage options by setting up some storage units
  • Start a dog sitting, horse stable, or petting zoo business
  • Open a junkyard to buy and sell unwanted items of other people
  • Create biking, zipline, or paintball course
  • Offer pay parking to car owners and drivers
  • Rent it out for advertising purposes
  • Host an antique or farmer’s market
  • Start a beehive, sell honey, and offer tours
  • Rent it out as a community farm
  • Lease it out to tiny house homeowners
  • Create a campground

There are other ways you can earn cash from your innocent land. It may not look much now, and you may have no plans of selling it in the future. Why not make the best use of it to add to your income stream? Know your options as well as existing restrictions so you can start making a business out of your raw land.

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