Earning Cash from Your Land:
If you’re considering buying undeveloped land in Walton County (or anywhere for that matter), you may want to think about what to do with it during the interim period. It may be your plan to re-sell the property at some point or even begin some form of development. If it’s the former, you may want to consider some strategies to adopt that could provide you with cash flow.
Whatever your approach, it always helps to know your options and to keep them open. Oftentimes, you really cannot afford to just leave the property idle. In that case, you should definitely consider maximizing your resources to gain as much from your investment as possible. Especially since there are external factors which may cause a delay in development.
Fortunately, there are a few approaches you can take. Just be sure that, whatever you do, it is as low cost as possible. After all, cash flow only really works if it is making a profit—if you have to pump a lot of money into a property just so it can generate a little income prior to development, you might as well go ahead and begin development as soon as possible.
Below are a couple of ideas for gaining a little extra cash from your undeveloped property:
Storage for Boats, RVs and/or Trailers: Living in the Santa Rosa Beach area, there are several folks who own boats, RVs or even utility trailers that their HOA’s do not provide storage space for, or in most cases, even allow. Most land owners didn’t decide to go into the storage business one day and rush out to find land for said storage business. In many, if not most, cases they bought the land on speculation or with the intent of eventually developing it. However, while waiting for the time to be “right” (i.e. appreciation, financing, etc.) renting storage space on it provides a relatively steady income and allows for some tax breaks since the property is now a business and not just sitting idle.
Parking Areas: One common approach—especially in a busy areas that have bee relatively well developed—is to put up a parking lot.
In developed areas, parking is often at a premium, so you can count on having constant business. Best of all, constructing parking areas is extremely low cost. Pour some concrete, install a payment machine, arrange with a tow truck operator to haul away miscreants and you’re done. In some cases, parking areas cash flow so well that the owner of the property may choose to simply keep operating it as an ongoing concern. Planning in Zoning in Walton County may have a few issues with some of our cash flow ideas, so it’s always a great idea to touch base with them to insure you’re staying within code.
Logging:Unless you plan on doing the work yourself, and assuming you already own the land, this is a very low cost operation. In fact, there should be no cost at all. You contract with a logging company to do the work and they give you a payment. In essence, what you are doing is selling timber rights to them. They harvest the trees and take them to the mill. If you are buying undeveloped land with the intent of having the property cleared for development anyway, they are actually doing some of your work for you.
Campground or Private Park:If the undeveloped land is large enough, then you may want to consider installing a natural campground. You can keep the natural surroundings, install a few RV hookups or tent camping spots and make considerable income…especially if your land is near the beach.
Another option, would be a private nature preserve or park. Cut a few hiking trails, or designate a few wildlife observation areas and ta dah, you have an income that is actually unobtrusive to the natural surroundings of the undeveloped land.
Hopefully, our ideas will get you brainstorming on offsetting some of the costs of owning that undeveloped land. For more ideas or if you’d like to find a great piece of undeveloped land to enact some of our ideas, drop us a message.