4 Ways Your Land Can Make You Money

Your property just might be a gold mine waiting to happen. If you have property but are wondering how it might provide you with income, read on.

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  1. Oil and gas drilling. You can make a significant monthly income by leasing land for oil drilling. Of course, this is only possible if there is, indeed, oil or gas on your property. However, there are reputable companies who will handle exploration, production and even restoration once the oil and gas are tapped out – hopefully not for many years. All you do is, provide the land, sign the lease, then enjoy the tax benefits the monthly cash flow.
  2. Maple tapping. Do you have forested land with an over abundance of sugar maples? If so, you may just have a long term income opportunity. The lease rate is anywhere from 50 cents to a dollar per tap, with an ideal situation involving at least 50 to 75 taps per acre. However, you have to be willing to allow the sugarmaker to install a tubing infrastructure as well as trails accessing the trees in addition to a gathering tank and most likely, a vacuum system. You’ll also need to be patient as most sugarmakers want access to your land for at least a decade.
  3. Timber sales. If you have forestland but a scarcity of sugar maples, timber sales can be a good – but sporadic – source of income. However, ensuring you get the most out of your forestland both now and in the future requires knowledge of both the value of the types of trees on your property and the best way to increase the value of the timber on your land. Hiring a good forester is a must.
  4. Wind turbines. Wind turbines are generally clustered in numbers of at least 20 or more and as a result, require large amounts of acreage. However, this can be achieved with a collection of smaller leases put together. If you are interested, you’ll have to be in it for an even longer haul than with maple tapping, as wind turbine land leases last anywhere from 25 to 50 years. If you are approached by a wind turbine farm developer, be aware that the legal documents surrounding the lease are extremely complex so be prepared to hire a lawyer to go over everything with you.

 

While no investment is a sure thing, these four options generally offer a consistent return.