Need to build up a yard that is lower than next door! How?
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What I would do is build up sections using landscaping blocks for a retaining wall. Figure out how high and how far from the house you want this "layer", fill in the bottom with gravel, then fill with soil, and repeat until your yard and the neighbor'a is similar. See: https://www.familyhandyman.com/landscaping/retaining-wall/how-to-build-retaining-walls-stronger/view-all
or
http://gardenclub.homedepot.com/build-a-retaining-wall-with-landscape-blocks/
Good luck on your project!
Have dirt hauled in
I just finished dealing with the same issue in my yard. I built some raised beds along the edge of my yard. I got retaining wall stones and top soil to fill it in. So far so good. It stopped the rainwater from getting around my house And instead it helps water the plants that I put in the beds!
If its water penetration you can also build a French drain in ... https://www.youtube.com/results?search_query=how+to+make+a+french+drain+in+your+yard
If you go the retaining wall route, depending on its height, check out how to include drainage for water that accumulates behind the wall. Otherwise, your wall is going to be pushed out by the pressure of the water that collects behind the wall.