8 Ways of Making Money Off Land Today

all right so let's talk about it the objective of buying land or in our case to land hack or to use land to make money off of it and what's the fastest and easiest way well there's a couple of them i actually wrote down eight i am taking this or i made notes of eight things or eight ways that i personally use to make money off of land and i can make them off of the land that i purchase or i'm looking at purchasing rather quickly now a couple of these i definitely spent a lot more time doing than others but doesn't mean i don't look for the other opportunities too so the objective is to buy property to expand and grow into an income producing asset i guess you would call it however there's some obstacles for a lot of us out there who are usually taught to long-term rent buy a home in the suburbs or inside a city or whatever yadda yadda yadda yadda we're not familiar with land we don't know how to develop it we don't want to do a lot of stuff but that's where we learn that's why you're watching this channel hopefully so the obstacle is that you don't know what to do or how to even get started but we're going to fix that today at least we'll point you in the right direction and then the stakes are is because interest rates are going up if you guys haven't heard welcome to the club that the fed is going to be planning on raising interest rates three to four times i think it's four times now this year that means is as interest rates increase obviously things get more expensive in terms of what you can afford dti all that stuff so we want to get into a property or want to get into land or some sort of land hack project development project sooner rather than later because right now you can borrow money for cheat right and as he has been watching my channel yes know that i pulled out a lot of money i think close to a million dollars at 2.75 interest rate i think one of the loans is actually at only 2.5 which is insane and interest rates are already going up to believe around three three and a half percent right now at the time of this filming so anyways we want to get those loans before they go away are those interest rates so the first thing is that i'm gonna be talking a lot about because obviously i like to do it and i'd like to say that i've been okay at it i've been pretty it's been good to me is the land hacking side of things is where you basically buy raw land you develop the land to build a structure or main structure and you turn into a destination area and then you rent it out to visitors and travelers via vrbo airbnb and you can make a lot of money this way and this is a two-sided store that i like to do where you build equity a ton of equity and you also build cash flows monthly cash flows recurring revenues other one number two is rehab and remodel so you buy a piece of property and i don't like and i've owned a lot of condos town homes land or i'm not land but properties inside the city my favorite now is buying property with acreage that has a structure on it and you rehab and you remodel it and right now if you guys can hear i'm not sure if you guys can hear the excavator it's running outside right now i've got a crew working on probably three acres on this land right now we've got about seven acres here we're working about two three acres of it but we can remodel rehab the entire property to build again the equity and the cash flows okay so with that out of the way that's my land hacking that's my bread and butter and if you guys are interested in the land hacking program which i will be enrolling the next cohort of students by the way first cohort you guys were awesome thank you so much for being a part of it we're enrolling in the second group in the upcoming week so you guys are interested in that go click down below or go over to my website kaiandrew.com get on the wait list and you'll be able to jump in and be involved with some really cool people and then obviously i'm pretty cool i like to say or i like to think that the third one or the third option is and this is what i'm looking at in both texas nevada washington and in florida is buying in existing income property i am sorry for the noise if you guys can hear it it's the dingo or the excavator we're doing a lot of landscaping here and the other build projects but you want to buy existing income operating property now that seems kind of like okay i'm just gonna buy another rental no i'm talking about an orchard a farm or even existing bed and breakfast not an airbnb but a legitimate bed and breakfast and there's a bunch of stuff that we can get into here that i won't bore you with right now we talk a lot more in the lane hacker program is that with these types of businesses that are generating revenue not only does it open you up to a lot of different types of loan options because they're cash flowing already but what it also does is it gives you the correct type of permits or zoning requirements so you just stack different things different zoning requirements or different types of permits that allows you to do things that i like to do in land hacking i.e destination areas and airbnbs or glamping or anything like that but with that said when you buy into an existing let's say an orchard one of the ones that i'm looking at here in oregon is that it's very income producing and a lot of times i'm not a farmer what we can do is we can lease that land back to the farmer or to another farmer who takes in care of all of it and so for example over here i'm looking at 100 i think 117 120 acres of this apple cherry pear 120 acres i'm not a farmer i don't have the equipment i don't have the knowledge i don't have the time to do that however in the purchase deal the farmer is willing to lease back that portion of the land so that he can operate continue operating his farm his practice is that what you call it practice or that just for law i don't know but you guys get what i'm saying what happens is now i can still access the rest of the acreage which is like probably another 20 30 acres i can access that's untouched by the farm but i can still own all of it while i'm generating revenue by leasing out that land now this doesn't just only work with existing orchards and farms what you can do is if you have really good soil and you're a good area with really good sunlight or you have a water source which is huge down in utah is that you can fleece out that land to farmers who come and till the soil and do their farmer stuff and make money off of it and pay you on a per acreage lease right the other option is what i was just down in austin texas looking for was i was looking at a couple different sites that were already existing bed and breakfast so a lot of times these are an older generation or like they're an older couple looking to retire and they've ran a successful bed and breakfast with multiple homes or multiple structures and they're wanting to get out of the game and they're willing to pass it off to somebody who's younger and hungrier like myself or like you and you can go into these places and you can actually be able to immediately pick up a place that has the right permits has the right zoning and has a steady flow of income that's already proven a lot of these folks don't keep really good books but in theory can you have proven track record of generating income and you can go in there you can spruce it up you can design redesign it and you can start bringing in a different type of customer type or continue the business and still make money off of it now the great thing about all these properties that i really like to do or i personally look at that make sure that there is a standard dwelling structure on the property like a home basically a farmhouse or a main structure and the reason behind that is because that allows you to get the best type of mortgage basically a primary home mortgage or a standard a traditional mortgage and you can still buy the entire property because that house is on there and that's a lot of where the value is stored is inside that home unless it's like a really high performing farm or some sort of like crazy glam for campground or something like that that's generally a lot of revenue but regardless having that structure there is a huge deal and can be really beneficial so that's what i'm looking for when i'm doing these or i'm looking for these types of projects and the fourth is what i just kind of touched upon the last one was is basically leasing out extra land to other people who may need to use it these are ranchers other farmers or even people who want to store things if you have a big shop or giant area where below texas almost every single piece of property that i've looked at have these massive shops like like almost airplane hangars and people need to store stuff all the time i'm including one of those i want to get a little mini excavator i want to get a little dingo so i can do work around the place around my properties you know what i don't have a giant shop on any of my properties i don't really want to build one i don't have the space to build it i would gladly rent out a small area five six seven hundred dollars a month and store my stuff there and so this is very common or more common out in the sticks or the rural areas but this is something that you can really consider and if you get looped into that group in that area that you're looking at you can easily i shouldn't say easily but you can find people who want to use your land to graze their cattle their goats their sheep their llamas whatever it may be llamas are big here in oregon i'm not sure why or you find a farmer like for example my property out here in oregon pacific northwest we are known for are pinot noirs might pronounce that pinot pinot i'm not a big wine drinker anyways we have a lot of south facing hillside here that makes it really ideal for grapes and so you can find what you call it a grape grower grape farmer a vineyard who basically wants some excess land to grow their grapes and so that's one big thing or that's one of the ways of monetizing a piece of land here in pacific northwest i'm sure where you're at you have your options too it's gonna obviously fluctuate a little bit depending where you're at all right next number five is start a lower maintenance operation this is something as again remember i'm from pacific northwest a christmas tree farm a pumpkin patch a little farmer's market stand or anything of the like you can even start growing harvesting and farming trees i know aside from christmas trees this is marketable timber so whether it's be turned into two by fours or what i personally like and what i've looked at in the past have not done it yet i do want to is farm really potentially high valued type of lumber such as dark walnut it'll take you maybe a couple decades to mature but you have a really nice retirement plan and if you guys look up the board foot price of dark walnut it's actually pretty high and if you can grow that on your property here in the pacific northwest i know it doesn't take a ton of time or maintenance to grow because they naturally grow here it can actually be a really good passive income maker for you now the thing is that you do have to wait a while depending on how mature the trees are and you want to make sure that you're getting a species of trees that is marketable within your lifetime but even if it's not there is value in the land if you plant 30 acres of dark walnut trees and if they mature in year 30 but it's year 25 there is value in that property so that is always an option as well but the x the christmas tree farms the pumpkin patches are great options if you want something that's relatively low maintenance can generate you secondary income and again stacking the permits and the zoning all that probably does not make sense to you right now but all my land hacker folks and all everybody who's trying to go through the zoning process or the permitting process to do glam sites and campgrounds you guys know what i'm talking about number six out of the eight is mitigation credits or our mitigation credits and water rights okay so this is getting into a territory that's more geared towards commercial developers but this is also something to keep a keen eye out especially in areas like utah texas nevada even a little bit here in oregon where there's a lot of farm or there's anywhere where there's like swamp land marshland anything like that you have to remember that the united states in general and then a lot of these states are always protecting waterways and their environment they're trying their best as far as i know and what that means is that there you cannot destroy swamp lane or you can there's only a certain amount of swampland marshland waterways that you can destroy not you you but like us collectively you and so what that means is if you want to destroy the marsh on yours you either have to buy credits from me that has marsh and it's protected it will never get bulldozed it will never be turned into a commercial parking lot or a mall or anything like that you can buy the credits from me so that you can build those your marshland and you can build something on it okay so these mitigation credits you can look it up google it there's gonna be do they're gonna do a way better job me trying to explain it is what you can do is you can get these mitigation credits or get water rights and you can basically sell the rights or these credits to other people who are trying to build or trying to do something think about like when you're trying to do like a conservation area most conservation areas are basically developers who turned that area into a conservation area and they took those credits and they sold it to uh commercial developers typically what it is this is a little bit more for advanced folks but for anybody who's out there and you've got your hands or maybe you inherited like 100 plus acres and there's marshland or there's swamps or there's like a waterway there or there's a stream or there's even like endangered species on your property there's a good chance you might turn it into mitigation credit and turn that into a lot of money number seven which is perhaps one of my pet projects that i'm looking at doing to my next project is splitting lots and so a lot of times when you're going around looking at land more particularly raw land but this happens to with existing structures on it is that you can find a parcel a parcel of land means like it's one big chunk of land that somebody's selling but it has multiple tax lots on it and when it has multiple tax lots on it that means that there is a potential way of dividing it and so you can go to the county you can work with the county get surveys done get some maybe some engineering done because there's road access and all that stuff and make sure you tick all the boxes and then you can split up one parcel into multiple tax lots and what you can do is then you can sell off the tax lots now why this is really interesting is because you can multiply your your value your equity because each time you divide one into two lots you in theory can double your money okay assuming that you know you're getting the going rate and everything else is equal however this gets really really interesting this is what developers do if you think about it is they buy a big chunk of bad land and then all of a sudden they break it up right they break it up into 50 lots for homes and then they can either sell that off or they build the homes and they sell it one by one that's essentially what you're doing except you're doing it on a little bit of a smaller scale with less craziness going on now this kind of goes into the next the last option number eight which is yeah i don't like the name of it but let's say it's flipping land so essentially you buy a piece of raw land and what you do is you can run utilities to it you can pull permits for it and even get road access way up to that piece of property and then you turn around and you sell it this is something that i am looking at right now as one of the options of the projects that i'll be taking on next knock on wood if all my other projects wrap up well but essentially what you're doing is that you're making a piece of raw lamb that's kind of ugly or untouchable i don't know that's the right word either but like it's not very attractive and then you bring utilities to it so there's power water internet maybe gas and there's an axe switch it's not just gravel roads you're not just driving down a log road or something you actually have a paved way or a graveled way to get to that property safely and for both the fire trucks construction supplies and then obviously the person who wants to own or develop that piece of property you sell it and usually you can sell these at premiums this is a massive game in the commercial real estate and multi-family real estate market it's not so big and residential because usually that's taken care of by big developers but there is money to be had here especially if you know your market well and you understand what you're doing and so a lot of times the utilities the paperwork the roadways it's a lot of grunt work or a lot of paperwork that's just not very sexy i guess you could say it's not like cool like building a house or putting together a glam site or building a vineyard or something it's like roads and digging trenches and putting in power not very fun but having those things pulled onto a lot into a piece of raw land can mean tremendous amount of work that's already pre-done and people will pay a premium for it especially if it's a really nice area or it's a really nice piece of land those are eight ways that you can make money off of land today now again i always recommend that you approach this with a two edged sword double-sided sword figure out a way to make money through the equity side making money through the cash flow sign those are things i talk all about inside the land hacker program and my six figure host program which is more geared around making six figures and replacing your income off of basically airbnb or short-term rentals land hacking is more about finding these piece of property these pieces of properties and then understanding zoning permitting and how you can maximize the most monetization from that piece of property and what i would always recommend and the reason why i am not just saying it or trying to teach it is actually i'm doing it if you can hear my noisy construction crew on the outside that has no respect to my youtube videos is that i actually do this too and i'm always looking for new properties to do this and i'm trying to share this with you so again if you want to join the program and join the second cohort of students and interact with the first cohort students who are phenomenal who are actually doing their own land hack projects and starting their own airbnbs right now too go to caiandri.com sign up for the wait list and i'll see you all in the next video and take advantage of those low interest rates while they last see you soon bye

Channel: Kai Andrew

Views: 88,792

Keywords: land investing, passive income ideas, passive income, kai andrew, land hacking, buying land, developing land, making money from land

Id: 90C3U09ixwE

Length: 16min 19sec (979 seconds)

Published: Mon Feb 14 2022