Part 8 How to Make Money With Vacant Land â€“ Improvements
This Coveted Lands post is Part 8 How to Make Money With Vacant Land – Improvements. So you've probably looked at parcels of land in the past and wondered Is this a useful asset. How can I make money owning land? In the past seven sections. I've discussed ways to generate income from the property so positive cash flow from owning vacant land in this post. The strategies that will be covered are oftentimes more lump sum payment scenarios as opposed to continuing cash flow scenarios. There are great ways to earn money with vacant land and they can be extremely profitable. So in this post we're going to talk about making money with vacant land through improvements on land or to that land. And there are three main types of improvements I'm going to cover.
Physical Improvements The first are physical improvements so this would be something you actually do to the physical land itself to improve the value. The second is services. So this would be things like you know getting water gas sewer all of that to the property. Those increased the value of the property tremendously. And the third thing I'm going to cover is legal meaning things you can do to the legal title of the property that can improve the value of the acreage that you buy.
So to start, the first section, physical improvements to the property. There are lots of things that can be done to increase the value of raw land. One of the most basic is fencing and the property by fencing and the property you make the property more usable by people that have livestock. And you also keep a lot of unwanted things out of the property. So fencing the property is a great way to add value to the property. There are a lot of people that are looking for land and they have livestock and when they go to buy they need that property to be fenced and they don't want to deal with the hassle of putting up fencing. This is something that can be done to add value to vacant land. Another thing kind of in a similar vein is managing the vegetation of the property. This is often done to improve the appearance of the property and to improve the usability of the property. Some properties especially from the Mississippi East can be very very fertile and overgrown with underbrush and a bunch of bushes Brambles all kinds of things that make it difficult to pass through the property makes it difficult for livestock to wander around and graze and by clearing out some of the undergrowth you can really improve the appearance and the value of the property because you make it more usable and more aesthetically pleasing. The other things you can do are adding vegetation to a property that may be sparsely vegetated especially trees. If it's in an area that's extremely open because that can provide privacy which a lot of owners really value. But anyway it's very specific to the property but every property could probably be improved in value by doing something to the vegetation. So that's another thing you can look at to increase the value of your property.The next item that is a physical change the property you can make is grading leveling or otherwise changing the terrain of the property including building levees. If the property is in a flood area you can build levees or elevate parts of the property to allow for building structures on the property that otherwise wouldn't be possible and that can add tremendous value. You can also level out areas to make them more usable and do other things to change the terrain. This would include damming water you might need to check with your State Department of Water Resources to make sure you're not going to run into any regulatory problems by damming up surface water but doing that could allow you to have more surface water on your property like a pond or maybe a small reservoir that would be extremely valuable to livestock and also to attract wildlife for hunting and also just for people to use a lot of people like having a pond on their property as something to look out and kind of pride provide some variety to the terrain. So this can be quite expensive if you already have equipment to do it. You're at a great advantage and you can scoop up properties make improvements to the terrain using a backhoe or you know any kind of tractor anything like that and increase the value of the property by doing so.
Access to the property The next thing is improving the roads both to the property and roads on the property if you're looking at a property that has a lot of acreage. You might want to have roads that get you to different points in the property so that it's easy to access any ponds any meadows or any potential building sites. Also the roads to the property you might need to check with the current owners of the land that the road is on before making any improvements but making any improvements to those roads can be extremely beneficial to the value of the land especially if the roads are a bit rough.
Finally preparing building sites. You know you can get an area kind of flattened out and ready to build on. So you look for a good spot which might include clearing some trees around it so you can provide views if you're in an area that's hilly you know something on the top of the hill with some trees cleared out. So there are nice views could add tremendous value to a property because a new potential owner or a potential buyer would you able to easily envision putting a house on that spot and seeing the views from there. So those are just some of the things you can do physically to the property to improve its value and to allow you to profit from selling the property at some future date. And you don't have to sell the whole property as we get to later. You can make money without selling all of the property you might want to subdivide make some of these improvements subdivide the property and then sell part of the property to someone else. And by doing so you might even be able to make enough money to keep the portion of the property that you own essentially free of cost.
The next item is services so you can improve the land by adding services to your land or improving the access to services and buy services I mostly mean utilities like water sewer power gas. These are crucial to the value of land because they impact what you can do on the land especially for residential or commercial use if you're able to
negotiate with a local power company or a local sewer company or a local water company or utility to get those services out of your property or on the road that your property has frontage on that can add tremendous value to your property. Also generally as civilization kind of expands outward as cities grow and the suburbs expand out some of these services just naturally grow out to rural properties. Well but if you're unable to get access to city or private utilities to provide these services there are alternatives. You can have a well put in on the property to get water you can have a septic system put into the property to handle sewage. You can also have solar or wind set up on the property so that there is electricity out there and having these utilities just makes it a lot easier for a new buyer to come along and the property is more of a turnkey property that they can just show up put a house or a trailer on or maybe a modular home on. And it removes a lot of the hassle that they would have to deal with to get these utilities and by doing that you increase the value of the property quite a bit. In many instances the final category of things improvements you can do to your property is legal improvements and with legal improvements. There are three main items that really add value to property that are covered.
The first is subdividing the property in many locations large acreage tracts sell for less per acre than small acreage tracts meaning if I have a tractor that's 160 acres it's going to sell for a lot less per acre than attract. That is 10 acres and the reason for that is there are a lot more buyers that would be interested in a 10 acre parcel. And there aren't that many people that can afford to pay a lot of money for land. And so you end up in a scenario where there are a lot more buyers for the smaller parcels and they're willing to pay more per acre for those parcels. So if you have that 160 acre parcel you might be able to subdivide into 16 10 acre parcels and by doing that you can increase. You can double triple quadruple or sometimes even more. The value of your acreage. And in order to go through this process it varies drastically by county. You know you check with your county to determine what's required to subdivide the property if the property is located in a city or also need to check with that city or with that township to make sure you follow the rules to subdivide the property properly. It can also be kind of expensive to do but make sure you understand that before you put in plans to do the subdivision the next legal item that you can do to improve the value of your property is getting easements to improve access to the property. This can be huge. Many properties were created and subdivided in such a way that they have no access or that maybe they have access but it's extremely porous. They might have legal access around the borders of the properties that neighbor them.
A lot of places require that easements be put in on the borders of properties. But if the border of the neighboring property goes over a ledge or a cliff or through a river you can't build a road very easily on the easement that may exist. Some properties don't have easements so getting an easement to the property or getting a usable easement to the property can add tremendous value and can even double or triple the value of a property just by going to your neighbor and negotiating a deal where you pay them a small sum to use a small piece of their land to access your property and by doing that you can increase devalue your property tremendously. So that is a great opportunity to make money with vacant land. There are a lot of people that steer clear of land with no access. And I think that can be a mistake. There are many situations where it is worth the headache to buy those parcels to discuss with the neighbors the option of paying for an easement and to get that easement in place so that your property will then have access by doing that you can add tremendous value.
Zoning The final legal step that I will cover is making changes with the properties zoning and the way this is handled in every county and city is different. So make sure you check with the local zoning department for the municipality that your property is in but making zoning changes can allow a whole different class of buyers to look at your property and if you're especially in a place that has great access like next to a highway or a major road it might make sense for you to look into rezoning your property to be commercial or maybe you can rezone your property to allow for it to be subdivided into smaller sized parcels or for higher density residential usage or for industrial usage. And depending on the zoning you're able to qualify for in a local market you might be able to substantially increase the value of your property just by changing the zoning. So these three legal steps can be quick but they can also not go through depending on whether your neighbor is willing to play ball with you and sell you an easement or whether the local municipality is willing to adjust to what you're requesting. So you need to do a little bit of homework before you
invest in a property. If your plan is to take one of these legal steps just to make sure that it's feasible to do them but they can be a great way to make money with raw land. So there you have it. You can make money through improving the parcel by doing physical things like adding fencing or changing the terrain of the property or the vegetation getting services and utilities out to the property. Adding in more parcels by subdividing the property or getting easements to the property or zoning changes all these are great ways to make money with vacant land and you can do them after you buy your parcel. If you're stuck with land you don't know what to do with you. You want to do something to improve its value. These are some of the things that you should look at among others.
How To Make Money with Vacant Land Series Part 1 How To Make Money With Vacant Land – Rural Leases Part 2 How To Make Money With Vacant Land – Infill Land Leases Part 3 How to make money with vacant land – Residential Rentals Part 4 How to make money with vacant land – Green Energy Part 5 – How To Make Money With Vacant Land – Easements Part 6 How to Make Money with Vacant land – Minerals Part 7 How to Make Money with Vacant Land – Plants
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How To Make Money with Vacant Land Series Blogs by Deed Ventures LLC covetedlands.com