How to Make Money from Raw Land

Written by michelle hogan
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How to Make Money from Raw Land
A piece of land can be rented out for use by farmers or hunters. (Thomas Northcut/Photodisc/Getty Images)

Most real estate investors purchase land with a home or other building on it rather than a piece of raw land. While a piece of raw land may require more work or creativity to make money from than already developed property, your opportunities are greater than if you own a single house on a small lot. Purchasing a piece of raw land in a rural area can give you many moneymaking opportunities if you are willing to put in the work.

Skill level:
Moderately Easy

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  1. 1

    Sell the land outright. The easiest way to make money from raw land without doing anything to it is to put it up for sale. You can place a sign on it and sell it to any interested party or consult a real estate agent and have her list it for you.

  2. 2

    Rent the land to hunters, snowmobilers or other interested parties looking for a place to camp. If you have a camper or can purchase one, place it on your land and advertise the area as a hunting retreat.

  3. 3

    Rent the land out to farmers. Farmers often rent land as pasture for their animals. Depending on its size, the land can be rented to more than one person or group at a time.

  4. 4

    Sell any wood on the property. If you don't mind the land being clear-cut, you can ask a local logger to cut any trees and sell them to a local paper mill or other wood buyer. While this action will give you a large sum of money right away, you will not be able to repeat the endeavour for at least another 20 to 50 years. The value of the land will also decrease without any wooded areas.

  5. 5

    Build a cabin, yurt or other structure on the land and advertise your property as a vacation destination.

  6. 6

    Subdivide the land into smaller parcels and sell it to those looking for a home lot. You can often command a higher price for the land overall by selling smaller parcels of a whole. For example, a 10-acre parcel that would normally sell for £52,000 can be divided into 10 1-acre parcels or 20 1/2-acre parcels that each sell for £19,500 or £26,000, depending on the area's local land values.

  7. 7

    Lease your land to a cell phone company for the building of a cell tower. Although it is difficult to interest a cell phone company in your land, if you can, a significant amount of money can be made. According to Cell Tower Info, you should advertise your land with a sign saying it's available for such a lease. Check with your local municipality and find out if there are any permits required or hearings already on the agenda for towers in your area.

  8. 8

    Approach a power company or wind turbine company about renting your land to them. Your land will need to be located within proximity to power lines and not far from a population centre that will use the electricity. The further electricity has to travel, the more energy is lost. Your land should also receive strong consistent wind with a wind speed of at least 15 miles per hour.

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