When most real estate investors talk about cash flow or value-add opportunities, they typically mean multifamily units, single family homes, short-term rentals, or flips. But there’s an overlooked strategy that’s gaining traction: Land.
It’s not meant to replace your core investment focus, but it may be a great strategic move to expand your portfolio and diversify.
Alex, our CEO at Sell2Rent had a very enlightening conversation with Paul Herskovitz, CEO of Discount Lots. In the following article I summarize all the meat he laid out for our Investor Community.
Low Barrier to Entry and High Potential
One of land’s biggest advantages is cost. Discount Lots allows people to buy land with payments as low as $350/month with no bank loans, no credit checks.
This creates a low barrier for investors who may not have the capital for brick and mortar properties or who want to test a new strategy with minimal risk.
“We make it as easy as buying on Amazon,” Paul explains.
Whether it’s a family planning to build in the future or someone who just wants a plot for recreation, the simplicity and affordability of land make it an attractive portfolio add-on.
Flexibility
Land is a blank canvas. You can build on it, hold it, flip it, subdivide it, lease it, or just let it sit and appreciate.
From tiny home communities and glamping sites to cell towers and solar farms, land appeals to a different type of buyer or tenant. Often ones that don’t compete with your traditional rental properties. This makes it a strong complement to your core investments.
High Margins Offer a Safety Net
Compared to residential properties, land investing has fewer holding costs and can offer outsized margins.
“Even when we’ve made mistakes, we usually still make money,” Paul says.
That’s because Discount Lots buys well below market value. In one case, they purchased a parcel for $2,000 and sold it for $220,000 to a solar company. These aren’t everyday wins, but the point is clear: there is plenty of opportunities when investing in land.
Scale plus Systems make it scalable
Paul’s team runs Discount Lots more like a tech platform than a traditional real estate business. They have underwritten over 100,000 parcels and built internal teams for customer service, collections, and deal management.
For investors, this shows that land can be a strategy for scaling. And if you partner with the right platform or develop repeatable systems, it becomes a dependable side strategy.
The Financing Gap: Why It’s Not a Core Asset
The biggest reason land isn’t more popular? Financing.
“You can get a loan for cosmetic surgery faster than for a lot of land,” Paul jokes.
Most banks won’t finance raw land, making it capital-intensive when doing it on a large scale. That’s why Paul recommends starting with other types of investments that let you cash in, cash out, rather than long-term seller financing or lease deals.
This financing gap makes land less suitable as a standalone strategy, but ideal as a complementary one for those with liquidity or access to private funding.
Niche Opportunities Within Land
Land investing isn’t just about rural lots in the middle of nowhere. There are dozens of micro-niches from timberland and mobile home pads to billboard leases and mineral rights.
These niches aren’t for everyone, but if you already invest in rentals or developments, they can add new revenue layers and reduce exposure to market cycles. For example, land near utility infrastructure or in solar-priority zones can skyrocket in value with the right buyer.
How to Get Started with Land
- Search Fast-Growing States – Focus on areas like Texas, Tennessee, or Georgia.
- Talk to Land Agents – Ask about subdividable lots or parcels with development potential.
- Buy Below Market Value – This gives you the cushion needed to stay profitable.
- Start flipping land – Build up capital before attempting seller-financing or long-term plays.
“You don’t need to reinvent the wheel. Just start small and learn fast.”
Final Thoughts: Use Land to Strengthen, Not Replace, Your Strategy
Land isn’t meant to replace your rental properties or development deals, as it doesn't have cash flow on its own. But it can give you access to high-margin opportunities, long term appreciation, and alternative exit strategies that are not tied to the housing market.
If you already invest in real estate and want to diversify with low-cost, flexible assets, land might be your next smart move. It offers the kind of creative freedom and margin that traditional properties rarely provide.
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