This land is your land—for $300

Mark Podolsky hated being an investment banker. “When a buddy said he was buying raw land for pennies and flipping it for a lot of money, I told him I didn’t believe him,” he says. Then he grabbed three grand he’d saved for car repairs and tagged along to a court sale in Deming, NM, “and did exactly what he told me to do.”

Podolsky bought 10 half-acre parcels for around $300 apiece, then promptly sold each for $1,200. He told his wife he wanted to quit his job to flip land; she said absolutely not. “It took 18 months for my land income to exceed my banking income. I quit in 2002,” he says. Since then, he has flipped 6,000 parcels and founded The Land Geek to guide others.

Land is cheap—but may not pay off easily

Podalsky’s approach is simple: Sift through public records for land owners who are behind on property taxes and make them a dirt-cheap offer. He then turns around and contacts the owner’s neighbor. “I’ll send a letter: ‘Here’s your opportunity to protect your views and privacy.’ Often, the neighbor will buy it,” he says. If not, he lists the plot in Facebook groups, on Land.com, or on his own site, wholesale.thelandgeek.com.

Although quick house flips can pan out, land is often a long game. “It takes patience because, unlike a rental property, it doesn’t produce immediate income unless you develop or lease it,” says Lauren Byington, who has purchased land in Texas and Missouri and increased the value through upgrades like a barn and RV hookups. “I could lease my land for hunting, but I love animals, so that’s not happening.”

In rare instances, land can rise in value. “In Texas, large tracts are being acquired for data centers and solar farms,” Byington says. “That makes it imperative that buyers research future development plans. Homes are more predictable, but land has more upside potential.”

Ownership doesn’t mean you can build whatever you want

Zoning will dictate what you can build or farm, how far down you can dig for water, and more. “In drought-laden Texas, you don’t have carte blanche to dig a well,” Byington warns. “Wells have run dry here, and I’ve seen neighbors paying to get water carted in. We hold our breath hoping that’s not us soon.”

Other rookie mistakes include purchasing landlocked parcels with no road access, not understanding deed restrictions, and assuming utilities and septic will be available and “easy” when they’re anything but. Her advice? Read the fine print. “When I was buying my first property, the seller attempted to include an addendum reserving the mineral rights, which can be extremely valuable in Texas,” Byington says. “Fortunately, I caught it, but many buyers don’t.”

The land may be the least of your costs

California investor Josh Justiniano learned just how expensive “cheap” land could be after buying a parcel in Bakersfield, CA. He built a duplex and was nearly issued the certificate of occupancy when the county requested that he rebuild several sidewalks and crosswalks before they’d sign off. “It cost $40,000 that we didn’t see coming,” he says. Lesson learned: “Talk to city planning and ask about off-site requirements like fire hydrants, gutters, or other infrastructure before you close, not after.”

All that said, Podolsky points out, “There isn’t a piece of land where someone can’t do something on it, even if it’s not obvious. I had a buddy who bought a mud pit. At first, I thought, ‘What a disappointment.’ Sure enough, someone rented it to drive around in his ATV. I’ve seen people buy swampland to grow shiitake mushrooms. I once mistakenly bought the side of a mountain for $2,500. A film director bought it off eBay for $32,500 so he could film there.”

And even if land owners don’t do or build anything at all, they dream that someday, they or someone in their family will: “People buy land to say ‘I own this part of the world.’”