4 Common Ways to Cash Flow

4ba05fa4-22a4-4694-9b19-12c78099e734Depending on what type of land the owner has and how they use it, their property can actually be a great source of consistent income.

Owning land comes down to more than just acreage and property rights. In fact, land isn’t a static investment. Rather, its value can fluctuate over time, and depending on what type of land the owner has and how they use it, their property can actually be a great source of consistent income.

This is particularly beneficial for owners who have businesses that pertain to their land. To generate cash flow, there are a number of things landowners can do:

Timber Harvests 
Owning timberland can be a large source of continuous revenue over time because the harvest can be sold year-round. Plus, a piece of land that has a proven track record of producing top-quality timber is inherently more valuable, which can go a long way when bargaining with sellers or those looking to lease the land.

Farming 
As has been the case since farming became a sustainable way of living, landowners have relied upon agriculture as a means of financial sustenance. The types of crops that are able to grow on the land are some of the biggest indicators of just how much property is worth. Growing and selling crops is perhaps the most common way landowners can increase cash flow.

Hunting Leases 
With strict laws in many regions regulating where and when hunters can shoot for sport, many enter into agreements with landowners to operate on their land. Hunters frequently lease land from owners, and if a piece of property is able to produce quality game like trophy whitetails, then these agreements can be made more profitable. Depending on the season, landowners can generate income through allowing hunters on their land.

Mineral Rights
In many cases, land may sit overtop oil or gas wells, or contain valuable resources that are highly sought after by drillers. Owners can sell or lease their mineral rights to these companies in exchange for dividends and profits from the excavations. This is common in areas like North Dakota and Ohio, which have been hotbeds for high-volume drilling.

A Mossy Oak Properties land specialist can help owners get the most out of their land, including increasing cash flow.

Courtesy of Mossy Oak Properties