While often overlooked, there are many ways to make money with land in Chicago! Get some ideas and learn about what to look for in our latest post!
When investing in in Chicago, there are a few things you can do to help you make money with land.
Flip It
Flipping land is a niche that investors don’t always take advantage of. Land can often be acquired at a low price and resold much higher when the right buyer is found. When you find a motivated seller, the deal can get even sweeter. Getting started with land can be much easier than investing in residential real estate. There are no maintenance costs, and the holding costs are minimal Even if you can’t find a buyer immediately, you won’t be losing too much by having the property sit in your portfolio.
Rent It Out
Just like a house, you can rent out your land too. First, you’ll want to make sure the land is zoned for what they plan on using it for. You don’t want any penalties for misusing the land to come back to you. Depending on the location and size of your land, a few people who would be interested in renting your land include:
Farmers – Farmers can use your property for crops or livestock as zoning allows. If you own a larger parcel is a somewhat agricultural area, reaching out to area farmers to rent your land isn’t a bad idea.
Local Businesses – If the property is zoned for it, you can lease the property to a local business to use for parking, seating, or for a special event.
Residential Neighbors – When you own a lot in a residential area, consider
Recreational Uses – League sports, BMX, or archery ranges are just a few examples of recreational businesses who will seek out the use of land. It may not be economical for them to purchase the land outright, but being able to use your land can help everyone. Of course, you’ll need to make sure the right permits and insurance coverage is put into place.
Special Events – A flea market, a farmer’s market, a craft fair, or even someone’s wedding are just a few of the ways to use the land. You’ll need to be sure the proper permits are in place and that you are working with reputable event organizers.
Develop It
As a landowner, you’ll want to keep your eye on development costs. Don’t be afraid to price things out and get some estimates. If you can find a cost-effective way to develop the land yourself, you may be able to make a lot of money renting or on the resell.
Sell It Directly
If your goal is to sell the land for a great price, find out what local buyers, developers, and builders are currently paying for land. When you sell the land directly as opposed to hiring an agent, you won’t have to worry about paying any commissions or fees. The goal is to buy low, then look for those actively buying, selling the land quickly and for a profit.
Wait
If you own land that isn’t costing you much, it might make sense to simply hold onto it and wait. Maybe it is in a more rural or less desired area. Communities are changing all the time. Land that was once worth only a few thousand dollars can quickly become land worth tens of thousands of dollars. Keep your eye on the market and sell when the time is right.