Lease Land Designations and Usage - How to Find Land for Lease
Land leases are often unknown to potential land buyers. These are leases that can be given to you by the owner of the land, and government agencies in some cases. The process can be tricky because you actually won’t own the land if you lease it, but you have a right to the land in accordance with the lease that's assigned. It’s a very tricky process, and one that you’ll need to research in-depth in your area.
Real estate agents may be able to help you, and there are some sites online that offer listings for land for lease. A major issue is that many of the sites are unreliable, so you want to be cautious with which site you’re going to lease land through.
Government auctions do exist that allow certain persons to lease land that is owned by the government. A good example of this is land that is owned by the government, but leased by oil companies. These auctions are often rather expensive, and is a way for the government to make money on land that it retains.
You’ll often find that these auctions include:
- Using the land for minerals
- Land that is on oil
- Land that's used for agricultural purposes
As the leaseholder, you will be responsible for making payments to the government, or whichever entity owns the land, and these auctions can range into the several million-dollar range if there are valuable minerals on the property.
You can find auctions by contacting your local jurisdiction and doing searches online to find potential land lease auctions in your area. Keep in mind that these auctions may not occur in your area, and you may need to travel across states to attend the auction.
Many states, for example Nebraska, has public auctions routinely for land that is grassland. This is land that is used for grazing, and structures may be included in the lease. Companies often offer these auctions, and you can see an example here.
Types of Leases
There are several different lease types available depending on what you plan on doing with the land. You may find someone that is willing to offer a flexible lease wherein you have virtually full rights to the land aside from ownership. But these are very difficult to find.
The following lease types are the most common:
HuntingHunting land may be leased, but this is becoming less common. Essentially, this is land that you’ll have the right to hunt on for a specific period of time. Companies may lease this land to offer hunting to hunters, or individuals may lease this land.
Finding this land is becoming increasingly difficult, and it’s best to discuss this openly with land owners. If you know a farmer or someone that owns a large lot of land, it’s often best to discuss this option with them. Farmers are especially willing to allow you to hunt on their land because many animals will harm cattle or destroy crops and need to be handled appropriately.
Oftentimes, a farmer will grant you this right for free as long as you take care of the “pests” that are harming their land or business.
The government, as mentioned previously, often leases land for oil drilling. This is a multi-million-dollar situation, and this all goes through government lease programs. You may be able to find an individual that owns land that is on an oilfield, but this would be a very difficult process.
The government and many landowners are willing to offer grassland leases. This is often best done by looking at local jurisdiction auctions as mentioned above. Many of the lots in Nebraska that are listed as grassland allow farmers to either cultivate the land, or use it for grazing.
Grazing is very popular, and you can also talk to local farmers that may have land available that you can lease.
If a property resides on a gold mine, for example, you may be able to lease the land or go into an agreement with the owner that would allow you to effectively split the proceeds. Why would an owner want to do this? The reason is that they may not have the funds to work the land appropriately, but are willing to allow somebody else to invest in the process for a commission.
Developer Land Leases
Most of the time, you purchase a home with the understanding that you own the land. But a land lease isn't a standard home purchase. Instead, the purchase price is reduced, and the buyer of the home pays the landowner for the right keep the home on the land.
Many landowners will work with developers because they don’t want to undertake the costs of building on the property. Developers will have the right to build on the land, and the landowner will lease the land to the buyer of the home. There are some major considerations with this:
- Finding a lender can be problematic.
- Lease rates can increase over time.
- You’ll build equity only in the home.
- Selling the home may be difficult due to the land lease.
But as the buyer of the home, you’ll have the benefit of not having to pay such a high price when the land is not involved. The best way to find this land is to contact local developers to determine if they have any land lease homes available.
Leasing vs Buying
Leasing is the smart choice for farmers, hunters and for companies that need to drill oil on large lots of land. If the land is not optimal to live on during some seasons of the year, it may be better to lease the land for the spring and summer months if you plan on using it for grazing land.
But in most cases, buying land is the optimal choice if you have the money. When you lease the land, you don’t own it and you may find that the landowner doesn't want to lease the land again when the contract is up. If you using this land as your primary grazing land, this can be very problematic.
LandCentury.com specializes in selling wholesale real estate at the lowest prices. We believe that everyone should have the right and the opportunity to get a great deal on investment property All you have to do to get the property you’ve always wanted is follow these simple steps:
Step 1: Find the Perfect Property
Use LandCentury.com’s powerful network of real estate listings to find the property of your dreams. We have everything from move-in ready investment properties and cheap houses to rural land, buildable lots, and fixer-uppers. No matter what type of real estate you’re looking for, you can find it at LandCentury.com
Step 2: Click the Buy Button
This will start the purchase process. As one of America’s top online property listing sites, we leverage our unique business model of submitting an online payment to hold the listing to make transactions straightforward and secure. Our purchase process is designed for simplicity and security. Once you click the buy button, you will:
Use our secure site to submit your processing fee. We make every effort to protect your privacy. That’s one of the reasons why we offer a 24-hour money back guarantee on your processing fee, so you can feel confident in your transaction.
The seller will contact you within the next 24 hours procced to the next step and get the necessary info to prepare the contract.
Buyer Transaction & Privacy Protection
LandCentury.com stands behind our buyers, and we want you to know that your hard earned money is safe when doing business through us. That’s why we have a number of features to help protect buyers, including:
Symantec Secure Site SSL certificate, providing a $1,500,000 warranty on every transaction
Secure encryption and data protection
24 hour money back guarantee on processing fees
2 separate legal offices across the country to help you with any problems you encounter, anytime
Seller ratings so you can see what other people have to say about their experience with your seller
Still Have Questions?
We’d love to answer them. Check out our Help Center page or call us at 1-888-LAND-WEB (526-3932)
Our highly specialized support team is ready to find a solution to your problem. A people first policy insures that a team member will always be available to speak with you personally.
Symantec SSL Certificate
Symantec is a global leader in providing security, information management solutions to help our customers – from consumers and small businesses to the largest global organizations – secure and manage their information against more risks at more points, more completely and efficiently than any other company. Our company’s unique focus is to eliminate risks to information, technology and processes independent of the device, platform, interaction or location.
This website can secure your private information using a SSL Certificate. Information exchanged with any address beginning with https is encrypted using SSL before transmission. LandCentury.Com LLC has been verified as the owner or operator of the website located at www.LandCentury.com. Official records confirm LandCentury.Com LLC as a valid business.
Better Business Bureau
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at www.bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation.
BBB has determined that LandCentury.Com, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Web Site Anti-Malware Scan
GeoTrust is the world’s second largest digital certificate provider. More than 100,000 customers in over 150 countries trust GeoTrust to secure online transactions and conduct business over the Internet. Our range of digital certificate and trust products enable organizations of all sizes to maximize the security of their digital transactions cost-effectively.
The GeoTrust Web Site Anti-Malware Scan includes a daily malware scan to detect malware and alert you with detailed information to respond quickly to the attack. What happens if malware is detected on this web site? If malware is discovered, the GeoTrust Web Site Anti-Malware Seal no longer displays. When the scan confirms that all instances of malware are removed, the seal displays again.
If you feel that you have been a victim of real estate fraud, there are many resources available for you as the victim. Your first step is to contact the local District Attorney’s office and report the incident. Our office will stand by you and provide any relevant information to support your claim. Here are additional agencies that can assist you and provide more resources: