I recently had a discussion with some real estate investors, the big time ones if you know what I mean. The kind of investors with multiple income producing rental properties and trophy wives. When discussing raw land, I asked, why have you guys not considered raw land for investing? The consensus was, real estate has ups and downs and we would rather have some sort of income from them rather than just holding for long term value. Well, they aren't wrong, value does take time. However, they also aren't totally right. Real estate does have ups and downs, but you can make rental income on raw land! it's a very unique strategy and we will let you in on a big secret that only a handful of land owners know about.
Making Rental Income With Raw Land - The Big Secret
First and foremost, not all of us have millions of dollars to buy up rental properties, I know I don't. But hang on, rental property is not unattainable and you don't have to sit out of the real estate game due to lack of money. You just need an affordable way to get started.
I'm going to ask you a question...are you ready!!! What is the cheapest real estate you can buy?
The term, "cheapest real estate to buy" is searched on google thousands of times a day! And for good reason, the majority of us don't have millions of dollars but we're smart enough to know that real estate creates wealth.
Well....what was your answer?
Was your answer land? I hope you got that right. After all, you already know this article is about raw land. But don't worry, we won't call you a cheater for this. It's true, raw land can be way cheaper than any home investment by far.
Would you be shocked if I told you we have listed land for sale on our website as low as $999? I have yet to see a house for this price.
Overall, you don't have to be rich to start a real estate portfolio, so now you don't have an excuse. Not to mention, you can finance land without credit too. In a few years you could own a good $5k to $10k parcel of land for less than you spend at Starbucks every month.
"What are you talking about!!! That's all good and well, but those guys are right!!!...I can't do anything with raw land and I want income!!!!
Okay Fine, Don't Yell At Me!!! I'll Let You In On The Secret But Don't Go Around Telling Everyone!
Gather around my friends, I'm going to start with a little story about my Baby Sister. My Sister at a really young age started accumulating raw land, which is a little embarrassing because I'm the land guy now and she did it first. Anyways, she picked a great location to hold these parcels of land, the area started becoming a tourist surfing destination and the value of the land did quite well.
Here is where it gets interesting, without any coaching or ideas from others she decided she want's to make income from these properties in some way. The area had a pretty good surf spot in front of it and she had the idea, why not let people camp here for money. She started realizing she could list this area as a camping spot, but in order catch peoples eyes, she had to improve the land a bit to make it attractive.
My sister started improving the land, but in a low cost affordable way. She couldn't build any homes or hotels as she didn't have that much money at the time so she started with a pool. Everyone loves pools and she had a really nice pool put in. It looked a little strange by itself on raw land so she started building other amenities like fire pits, leveled camping spots, RV slabs, covered bbq areas, showers, bathrooms and electrical. She also put in cool decorations, night lights and a music area to give it a cool vibe at night.
Well it worked, the place is doing great, it hardly needs any maintenance and all she does is manage the campground remotely. The money is way more than you would expect, she doesn't have to work another job and it's all thanks to raw land. She has income producing real estate, but it's raw land, something most real estate investors didn't think was possible. You see, you just need to think outside of the box like my Sister did, there is always a way.
But now it's easier than ever to do this, thanks to HipCamp
HipCamp is an excellent way to get started on producing income with raw land. Go on take a look, you don't need fancy land in the best location on earth, you just need raw land to get started.
There are 1.9 Million users a month on HipCamp, all looking for places to camp on other peoples land. AirBnb realized this and allows camping spots as well now. It's a huge market, people love road trips and living the freedom lifestyle, exploring the world in cost effective ways is a huge trend.
There is nothing stopping you from doing it too, with the right parcel of land and some good ideas you can start making passive income. And yes, there are people making thousands a month from their raw land doing this, take that home investors! We don't even have to be there or do maintenance, I think we're smarter than them really.
The most popular camping spots on the site really got creative and made the spot more than just a plot of land. With little funds and a lot of creativity, you can make your raw land a popular spot for campers while earning passive income. We're going to leave you with a few ideas that these smart land owners below have done to make money on their land.