10 Reasons Why Land Investing Is The Best Passive Income Model

There are countless ways to generate passive income, Amazon FBA, blogging, Airbnbs, rental properties—you name it!

But each of these methods is riddled with its own headaches.

Land investing is different.

In fact, I’m convinced that land investing is the best passive income model.

It’s simple, low risk, headache-free, and easy to get started.

I’ve been a professional land investor for 20 years and owner of Frontier Properties. Since 2001, I have completed over 5,500 land deals with an average ROI of over 300% on cash flips, and over 1,000% on the deals with financing terms.

I’m also the author of Dirt Rich, the ultimate guide to help you build passive income through land investing.

What is land investing?

Before I dive into WHY land investing is the best passive income model, let me give you a quick run down on exactly what land investing is.

Land investing we buy raw land for $.25 on the dollar from those eager to sell their vacant land, then we turn around and sell it at retail price.

Essentially, we’re land flipping.

Where does the passive income come in?

Rather than doing a straight land flip, we offer owner financing to make the dream of land ownership easy and affordable.

For a breakdown on how land investing works, watch this video. 

Why Land Investing Is The Best Passive Income Model

So let’s get into exactly why land investing is the best passive income model out there.

Huge Market

The land market is massive.

There are 3007 US counties and billions of land available.

What’s even better is that you are not confined to work in your local area!

All you need is a laptop and an internet connection, so you can run your business from anywhere and work in any county across the US.

The market is so big that we’ll all run out of money before we run out of land.

No Big Money Players

Big money like private equity groups, hedge funds, etc. all avoid our niche because they have too much money to invest.

Our average deal is $2500. So you won’t see any big money players in our niche.

Cheap To Get Started

Because our average deal is $2500, you do not need a lot of money to get started.

I started with $3000.

Some of my clients started with as little as $500 to do their first deal.

Let’s look at some deals done by members of our community so you can see just how little money you need to invest up front to see some big returns!

And look at this home run deal!

Little Competition

You won’t see me on HGTV or the DIY Network on “Flip This Land.”

The before picture is raw land, the after picture is raw land.

It makes for boring TV.

Plus, if you real estate association meeting or a real estate meetup, 99% of the people there will be house flippers or wholesalers, you and I would be the only land investors there.

Land investing is an overlooked niche, which is to our benefit.

Generates Cash Flow

If you’re looking to generate passive income, then you should offer owner financing.

In this case, the buyer will make a modest down payment (which often covers the price you paid for the property) and then pay you small monthly installments until the property is paid in full.

The game we play is to do enough of these terms deals where we cover all of our fixed expenses.

Your first deal will cover a car payment.

A few more deals and you’ll cover your mortgage.

Soon enough, you will be able to cover all of your fixed expenses so that you can work when you want, where you want, and with whom you want.

And you don’t have to worry about defaults!

We don’t have to worry about evicting anyone or going through an attorney to remove a lien or a deed.

We simply resell the land, and this time around, our cost basis is even lower than before.

Let’s look at some terms deals from members in our community so you can see just how great these deals are for yourself.

Land Investing Scales

You do not have to be like the housing people, an expert in your local market.

Most often, they’re confined to one or two metropolitan areas. Meaning they are susceptible to market dips, increased competition, and are inherently limited on the numbers of deals they can do.

Land investing is different.

All you need is an inexpensive laptop and an internet connection to get going, and then you can start doing deals anywhere in the United States.

Say you start doing deals in county A and everything is going along fine.

You’ve set up your systems, you’ve got virtual assistants doing the heavy lifting, you’ve automated repeatable tasks.

What stops you from entering another market in county B?

Nothing!

Once you’ve got a great handle on the market in one area you can expand your business to another. This is great protection from any type of market dips or increased competition.

And when it comes to land investing, competition is considered a good thing.

That’s a signal the market is healthy and a really good place for beginner land investors to start.

Leverage Your Time

The land business is extremely repetitive, and that’s a good thing.

Why?

It means that you can automate a majority of tasks with tools like Zapier or Processmodo.

And for the tasks that can’t be automated, you can outsource them to inexpensive virtual assistants.

In fact, I only put in about an hour of work on my land business each week.

It can’t get much better than that!

No Headaches

Land investing is simple.

No Renters

No Rehabs

No Renovations

No Rodents

No one is calling me at 3am saying “hey, my land is leaking!”

There’s just no such thing as a land emergency.

One time I thought I messed up real bad on a parcel of land I purchased.

I made a mistake in my due diligence and purchased a 20 acre parcel on the side of a mountain that only had about 5 acres that were accessible.

I thought I’d be stuck with this property that I paid $2500 for.

So I put it up on eBay with a $10 minimum bid just hoping to offload it.

Well $10 very quickly became $30,000.

I called the guy sweating letting him know it was on the side of a mountain and that only a fraction of the land was accessible.

He said it was perfect! He was a director from Los Angeles and didn’t want to deal with the hassle pulling permits from the county to film.

So now he owns the land and can film there whenever he wants.

There is a buyer for every parcel of land.

No Common Real Estate Legislation

Since we are not dealing with tenants, we are exempt from common onerous real estate legislation like:

• Dodd-Frank
• RESPA
• Safe Act

It’s the Best Passive Income Model

It’s a one time sale.

You get recurring income every month.

There is nothing to maintain.

There is nothing to protect.

There are no headaches.

Land investing is different.

Land is simple.

Next Steps

Follow the Art of Passive Income Podcast on your favorite listening platform. Learn strategies, skills, and tips on how to build a successful land business. Plus hear interviews with entrepreneurs, investors, and thought leaders on the best passive income strategies.

Join our abundance minded community. Meet, learn from, and grow with land investors from beginners to seasoned experts.

Get our FREE Passive Income Launch Kit. I will share with you some of the secret Land Investment Strategies you probably have never heard.

Get our FREE Wholetailing course. Learn how to double your money in 30 days or less.

Learn more at thelandgeek.com.