With today’s real estate prices, you can no longer find land for under $10,000. In fact, there are $1 million land listings out there where the land seems unusable or awkward. It may look like it does not make sense, but land could be a very good investment. Here are ten ways you can make money with land.
1. Flea Markets
If you buy a plot of grass or a paved area on a busy street, you can turn your land into a flea market. Depending on where you live, this may be a seasonal option to make money with your land. You can’t do much outdoors in frigid temperatures. Flea Markets are a great way to make money with little effort. On average, you can charge $50 per market over a 4 hour period on Saturday or Sunday. If you have 30 markets setup on a given weekend, you can make up to $1500 per week.
2. Parking
The Malcom In The Middle Star Frankie Muniz spent his millions on buying land in Los Angeles, California. Most of his properties were parking lots. While he does not own them anymore, he made good passive income on his land investments. Buying parking lots should be strategically centered around downtown or touristy areas where traffic congestion and parking is a problem. Having your own parking lot business may require having a full time employee. You can use automation to avoid the need for an employee, but then you need to have connections and contractors who can repair those automated systems quickly when needed. Your average 20 car parking lot will make $200-500 per day at $10 per car. You can expect at least $70,000 per year and up to $150,000 per year in high demand areas. If you have a small parking lot or an unused driveway or garage, you can rent it out yourself using the Neighbor app. I have personally used Neighbor to rent out garage space and a fenced in parking spot.
3. Storage – Boats, Trailers, or Storage Units
Similar to the parking lot, you can purchased land for the use of storage. There are many opportunities to use your land for storage. If you buy land near a body of water, it may make sense to install a fence and fill it with gravel or pave it so you can use it to store boats. However, if you buy land in suburban areas, it may make sense to build storage units on your property. If you purchase land in an industrial area, it may make sense to park or store semi-truck trailers. If you purchase land near a port, you can rent it out to store shipping containers. Speaking of boats, I used Neighbor to rent out a boat parking spot by the river. I charged $50 per month for the spot.
4. Build New Construction – Residential or Commercial
This is what most people think about when they look for land. They dream of designing and building their own house in their dream location. This is not easy, but it could be very lucrative if you have experience and you chose a great location. Buying a plot of land to build your own property would typically take more than 2 years for the average person. It takes months to a year to get permits for the design, then up to 6 months to get building materials. You need to hire licensed engineers and architects to design your home. You also need a contractor who has subcontractors. The costs add up quickly. Building your own home is often more expensive than buying a new construction home. However, if you can find the right location to build your home, you can make your money back with a nice profit when you sell your property.
You can also develop your land for commercial use. Check out my posts “Investing in a Commercial Property” and Industrial Real Estate Zoning. Between multi-family, office, industrial, and retail, you have many options and opportunities to develop land for commercial use. Start up costs are usually in the million’s so this choice is not for everyone.
5. Sub-Lease Garden Plots
Major congested cities like Washington D.C., Philadelphia, New York City, and Los Angeles are filled with apartment buildings. Those yearning for a vegetable garden have no choice but to lease garden plots. One year is the standard lease contract for garden plots as it takes time to grow and cultivate your vegetable garden. I have been to some of these sub-leased garden plots. The land owners put fences with locks around each plot. They typically provide a source of water and some basic gardening tools. The startup costs for a community garden starts around $3,000 but can be up to $30,000 depending on the size. It includes getting the water plumbing completed, insurance, contractor wages, and city permit fees.
You can expect to pay between $0.25 per square foot to $2.00 per square foot. An annual cost of $100 for a 100 square foot plot is normal. The amount will vary depending on:
- Plot Size
- Location
- Demand
- Amenities
If you can purchase a plot of land and sub-lease 50 plots, you can expect to make $5000 per year. It is not much, but your return on investment is good.
6. Lease or Rent Out for Activities
If you purchase a large piece of flat land, you have lots of options for event-related activities. Just make sure you have the right insurance, zoning, and permits. The opportunities include:
- Nerf Battles
- Zip Lining – Need Trees
- Paint Ball
- Halloween Haunt Events
- Straw Mazes
- Carnivals
- 5K Runs
- Food Trucks
- Farmer’s Market
- Sports Fields
7. Teach Outdoor Classes
If you live somewhere warm year-round like California, Arizona, Alabama, or Georgia, you can use your land to teach classes. This includes:
- Yoga
- Zumba
- Karate
- Tae Kwon Do
- Kick Boxing
- Track & Field
- Tree Climbing
- Bird Watching
- Horse Riding
8. Create a Campsite
If you have purchased land in the woods or the mountains, a camp site may be the perfect use. As a camper myself, I have been to camp sites with no amenities and I have been to other sites that offer restrooms, water and electricity. Depending on the option you go with, start up costs could range from $15,000 to $500,000.
9. Rent Out Land on Airbnb
This is a derivative of creating a campsite. Through Airbnb, you can list or rent out plots of land to camp out. Those who already live somewhere with a nice view or a water front property are listing their yards on Airbnb so that people can bring their own tent’s and camp out for $20-50 per night.
10. Horticulture
Last but not least, you can create a beautiful garden that people would pay to see. Google Long Wood Gardens and Hershey Gardens if you want to picture what I am talking about. Concurrently, you can sell trees, plants, and vegetables as a plant nursery.
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