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I've said it before, and I'll say it again: vacant land is one of the world's most overlooked and misunderstood real estate investments.

Whenever I tell people I specialize in buying and selling LAND, I get a lot of blank stares. There seems to be a widespread (and erroneous) assumption that vacant land is a “weak” or even pointless investment because:

  • It doesn't produce income.
  • It just sits there, and nothing happens.
  • It's flat-out boring.

It's an unfortunate misconception because the truth is, vacant land is capable of producing some serious cash flow. It's one of the best investments on earth because of its hands-off nature and versatility.

10 Reasons to Invest In Land

I LOVE the fact that land just sits there, and nothing happens.

The simplicity and stability of owning the right piece of land, purchased at the right price, far outweigh the problems with every other type of real estate. If you've overlooked raw land as a viable investment opportunity in the past, you need to take a few minutes and get educated about 10 rock-solid reasons you should invest in land!

1. With Vacant Land, You Don’t Need to Do Anything to the Property.

Forget construction! Forget renovations! You don't need to be an expert or know anything about how to rehab a property yourself. In most cases, you only need to know one thing: “Is the property suitable for what I want to use it for?”

vacant land investing

As long as someone else can use the land for its highest and best use, a huge part of the battle is already won.

2. Raw Land Is a “Hands-Off” Investment.

Have you had enough of dealing with problem tenants? How about toilets, bugs, mold, lawn care, leaking roofs, burst pipes, broken furnaces, and the hundreds of other issues with owning buildings?

Vacant land doesn't involve any of those things. Once you buy it… it sits there, it behaves itself, and nothing happens.

3. Statistically, Vacant Land Owners Are Highly Motivated to Sell.

Why? Because vacant landowners (by default) are always absentee owners. When a person doesn't live inside (or even near) the property they're trying to sell; there's less of an “emotional connection” because it isn't their primary residence. In many cases, you'll find that these sellers are willing to sell their land for pennies on the dollar—simply because they don't live near it or it's not producing any income for them (because they don't know how to optimize their land correctly). As a result, they are much more apathetic about it.

Find these people, and you will find some incredible deals.

4. Land Investors Have Far Less Competition to Deal With.

Are you tired of dealing with such stiff competition on every property you try to buy? Are you sick of getting outbid on every good deal you're lucky enough to find?

Well, guess what… there is very little competition in the world of raw land investing. Most real estate investors have their minds set on things like houses, apartments, and commercial property because that's what everyone else does. They don't understand the superior benefits that come with land, and this can play to your advantage!

5. Land Investors Call Their Shots.

When you buy vacant land the right way, it's easy to buy each property with your own cash and avoid dealing with banks and mortgage companies altogether. When I started as a land investor, I had $3,000 to my name.

And to this day, I have never had to borrow money from a bank. Ever.

land investing capital

When you know where to look for great deals on land, it requires minimal start-up capital to get your business up and running.

6. When You Learn How to Research Properties Effectively, You Can Buy and Sell Vacant Land Properties Without Ever Seeing Them in Person.

A few years ago, I bought and sold a parcel of land that grossed over $44,000. The entire process took me five months from start to finish. To this day, I've never seen this property with my own eyes. Everything was done virtually, using the tools you and I have available for FREE online.

Remember, the beauty of vacant land is that it has no structures. This means the inspection process is straightforward—and if you're doing the right research, you can easily buy your properties without visiting them in person.

7. Add Seller Financing to the Mix and EXPLODE Your Income Potential.

When you combine vacant land with the power of seller financing, it's a match made in heaven. It can open the doors to finding MANY more buyers because most banks are hesitant to lend money on vacant land. Due to the scarcity of “easy money” financing for vacant land properties, land investors can use this to their advantage by charging a higher-than-market interest rate, and many people will gladly pay it.

Seller financing is also a great way to create multiple streams of passive income. Properties sold this way can act like rental properties but come with virtually none of the typical headaches for which the latter are known.

8. Land Is Very Inexpensive to Own as a Long-Term Investment.

When you buy a piece of land for the right price, there are no mortgage payments, no utility bills to pay, the cost of property insurance is nominal (if you have it at all), and property taxes are incredibly cheap. If you want to park your cash somewhere and forget about it, vacant land could be the investment vehicle you're looking for.

9. Land Gives Its Owner Peace of Mind.

Think about it: land is a long-term, tangible asset that doesn't wear out and doesn't depreciate. Nothing can get broken, stolen, or destroyed.

Put all of these benefits together with your ability to buy it for next-to-nothing price… and can you think of a better combination?

land investing peace of mind

10. They Aren't Making Any More of It.

Most people don't think of vacant land this way, but the reality is that land is a precious resource with limited quantities. Especially when you purchase land in the path of growth, you will find yourself with a finite asset that many other people want to get their hands on. Stocks, bonds, mutual funds, and 401Ks all make sense in certain scenarios… and so does land.

If you go into this with the intent of holding the right property long-term, it can make much more sense (and be a lot more profitable) than any other retirement vehicle out there.

Land Investing Is a Huge Opportunity

I'll be completely honest with you. Land investing is—without question—the most powerful strategy I've used to build my real estate investing career. I've bought and sold hundreds of vacant land properties and generated a lot of passive income by selling them with seller financing.

After running the REtipster Blog for a few years, many readers had asked me to put together a comprehensive land investing course, so they could learn all the basics of how my business works from start to finish, so I finally did.

REtipster Land Investing Masterclass LOGOThe Land Investing Masterclass is a paid membership website that offers access to a 12-module, 80+ lesson course on how my land investing business works (with all-inclusive access to my tools, videos, calculators, and more). If you're looking for an in-depth, step-by-step guide on how I managed to skyrocket my income on a part-time basis and quit my job through the power of land investing, this will show you how it's done.

Land Investing Foundations LogoIf you'd rather dip your toe in the water and get educated on the most basic concepts and opportunities available in the land investing space, you might also consider the Land Investing Foundations course, which explains how to speak the language of a land investor, pursue the right strategy that compliments your strengths, and identify good markets, good properties, and good opportunities.

Obviously, I wouldn't recommend pulling the trigger on anything like this unless you're ready to take it seriously and treat it like a business. If you think you've got what it takes and you're ready to dive in, I can tell you—from personal experience—that this is an investing strategy that works (trust me, I've got a lot of big checks to show for it).

Come check it out; I think you'll like it!

About the author

Seth Williams is the Founder of REtipster.com - an online community that offers real-world guidance for real estate investors.

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