Looking to Buy Land? 5 Ways to Profit From Land in Arizona

People have lots of reasons to buy land in Arizona: maybe you’re looking for a homesite; maybe you want to create an off-the-grid retreat; maybe you want to hold it and let the value increase over time: or maybe you want to develop the property in order to generate a passive income. Or, and we’ve seen this before, a savvy shopper will buy land before they’ve actually fully formed their idea for the property because it was a good price, a good location, or they just got a good feeling for what could be possible with that particular piece of vacant real estate. When it comes to diversity potential, vacant real estate offers a great variety. In this article, we share 5 Ways to Profit From Land in Arizona.  

Before we jump in, we have a few tips before you buy land in Arizona. Make sure you do some homework on the property you’re considering so you have a general idea of the price you should be paying.  Unfortunately, unlike developed properties, with many other similar listings to compare to, the current market value of land is often difficult to pinpoint precisely. If there are relatively similar properties, this can go a long way towards guiding you to the correct number. Also, perform due diligence and consider the basics, like access and utilities, and that your intended use won’t be the cause of any zoning issues. 

That said, let’s get into just some of the ways you can profit from vacant land.

1) Hold It

Due to the limited supply of land and the increase in demand as the population increases, land value can increase dramatically over time. For this reason, many investors buy land and hold onto it with a long-term outlook to make a profit from the future sale. One of the most passive real estate investments, it’s a straightforward matter to have someone manage land holdings in your portfolio on your behalf, other than paying taxes. There is very little to do when you own raw or vacant land, though some property you must mow regularly, depending upon the zoning. 

2) Improve & Flip Raw Land

Real estate purchased for flipping has the potential to offer a great return on investment, ROI, when you buy land in the right location and at a great price. You could do the footwork to add entitlements, which adds value to the land. Subdividing a larger plot into smaller lots is another way to increase the value of your investment quickly. In addition, offering to finance the land can garner you an even higher price from a buyer who doesn’t have the funds to buy the property outright, with easy financing and a low-interest rate. 

3) Develop It

If your goals are to develop raw land into a commercial or residential property to profit from land in Arizona, refer to the land residual technique to determine the value. The bottom line is, once you’ve calculated the costs to complete the development, the numbers must add up in your favor. Because there isn’t fierce competition to buy land, you can come in with an offer lower than your determined value, raising your bid only if the seller counters. The better the deal, the better the profit.

4) Lease It

Another way to remain passive yet profit from land in Arizona is to lease the land to another for use. For example, owning a lot on a well-traveled main highway may offer the opportunity to lease to seasonal retailers, such as temporary pumpkin patches, Christmas trees, or fireworks stands. In addition, farmers and ranchers often lease land and are responsible for development and taxes.

5) Event Space

This one is a more creative way to profit when you buy land in Arizona. No matter where you live in the USA, there are likely traveling events that pop up near where you live. These events pay landowners to lease the space on a short-term basis. You will need to find out the permitting process, but you can use your land to host events such as concerts, circuses, Octoberfests, and carnivals. Make sure you have solid contracts with these vendors, limiting your liability.

Southwest Land Deals

Click here for even more ideas for when you buy land and want to generate income. You can count on the experts at Southwest Land Deals to help you find the property that aligns with your investment goals. And, Southwest Land Deals has a steady inventory of the best land available on the market in Arizona to help you get started now. Contact Southwest Land Deals at 480-442-7787 today!

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