{"id":4137,"date":"2022-02-21T18:06:00","date_gmt":"2022-02-21T22:06:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=4137"},"modified":"2022-02-27T10:07:23","modified_gmt":"2022-02-27T14:07:23","slug":"is-flipping-land-a-great-real-estate-strategy","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/","title":{"rendered":"Is Flipping Land a Great Real Estate Strategy?"},"content":{"rendered":"\n<p>Most real estate investors are already familiar with the idea of house flipping. In simple terms, you buy a house, make a few repairs and upgrades, and sell the house for a profit. Some investors take the extra step of upgrading a home and just renting it out before potentially selling the property down the road.<\/p>\n\n\n\n<p>Another lesser-known investing technique involves a&nbsp;<a href=\"https:\/\/propertyonion.com\/education\/how-to-start-investing-in-county-foreclosure-tax-deed-auctions-wholesalers\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">similar process<\/a>&nbsp;but with land. While land flipping may not be for everyone, it offers an amazing opportunity for those looking to get started in real estate investing or to diversify their portfolios.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#What_Is_Land_Flipping\" >What Is Land Flipping?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#The_Life_Cycle_of_Land_Flipping\" >The Life Cycle of Land Flipping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#1_Do_Your_Homework\" >1. Do Your Homework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#2_Pick_Your_Target\" >2. Pick Your Target<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#3_Contact_the_Owner\" >3. Contact the Owner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#4_Get_the_Property_Under_Contract\" >4. Get the Property Under Contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#5_Find_a_Buyer\" >5. Find a Buyer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/propertyonion.com\/education\/is-flipping-land-a-great-real-estate-strategy\/#Land_Flipping_Has_Potential_in_Your_Real_Estate_Strategy\" >Land Flipping Has Potential in Your Real Estate Strategy<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Land_Flipping\"><\/span><strong>What Is Land Flipping?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Land flipping is just like it sounds. You purchase raw land and then turn around and sell it for a profit. This model is similar to the model used by house flippers, minus the house.<\/p>\n\n\n\n<p>Unlike house flipping, there aren\u2019t tons of others competing for properties. To date, there aren\u2019t any HGTV shows following land flippers around. Some might suggest that this is because land flipping isn\u2019t as exciting or profitable as <a href=\"https:\/\/propertyonion.com\/education\/rehabbing-a-fix-flip-a-beginners-overview\/\" target=\"_blank\">house flipping<\/a>, but those people most likely don\u2019t know the whole story.<\/p>\n\n\n\n<p>Land flipping can be one of the easiest and most profitable ways to get into real estate investing. <strong>Raw land is much less expensive than buying a house, apartment unit, or commercial property. <\/strong>That means you don\u2019t need as much capital, and there\u2019s less risk. <\/p>\n\n\n\n<p>Land flipping, when done correctly, also has excellent profit margins. There are far fewer secondary costs like making repairs, paying for inspections, and so on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Life_Cycle_of_Land_Flipping\"><\/span><strong>The Life Cycle of Land Flipping<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not every investor will use the same method for flipping land, but there is a fairly standard life cycle that every deal goes through. Here\u2019s how you can jump into the land flipping game.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Do_Your_Homework\"><\/span>1. Do Your Homework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re just getting started with flipping land, you want to take some time to explore multiple markets. Not every area will have the same types of land available in the same price range.<\/p>\n\n\n\n<p>Your goal is to identify what kind of land you\u2019re looking to flip. That also means identifying any state or local laws that might apply to vacant land transactions, zoning, etc. You also need to set your budget for the deal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Pick_Your_Target\"><\/span>2. Pick Your Target<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several types of land that you could purchase. <strong>The first involves land that surrounds or is near paths of growth.<\/strong> Most cities have predictable or easy-to-identify pathways of growth. As population increases in urban areas, people will look towards the suburbs to escape congestion. If you can reliably predict where demand for land is coming, you can potentially get in early enough to purchase future desired land at a great price.<\/p>\n\n\n\n<p>Identifying growth paths is a skill that involves understanding population dynamics, market trends, and more. If you guess wrong, you could end up with land that isn\u2019t in actual demand.<\/p>\n\n\n\n<p>Another option to target for your land investment is something called an infill lot. <strong>Infill lots are basically gaps in areas that are already developed.<\/strong> Imagine driving down the road and seeing homes or commercial buildings on every lot of the block except one or seeing a massive piece of raw land between two existing properties. This land is an infill lot.<\/p>\n\n\n\n<p>Infill lots can also be more significant pieces of land around areas of new construction. Companies and developers will buy massive amounts of land to build <a href=\"https:\/\/propertyonion.com\/education\/should-you-invest-in-a-master-planned-community\/\" target=\"_blank\">planned communities<\/a> with multiple houses. Infill lots could be areas near these new communities where someone might want to add commercial properties to serve the new homes. They could even be used for residential areas that will attract people who want to live near but not in the fresh neighborhoods.<\/p>\n\n\n\n<p>You want to research what kind of land is available and how it can be developed. Where the land is located and what surrounds it might dictate how it can be used. These elements will directly impact the market value of the property.<\/p>\n\n\n\n<p>A final option is recreational land. <strong>This is most often rural land that hasn\u2019t been zoned for development yet. <\/strong>Because it doesn\u2019t have a specific designation, a buyer has an opportunity to use the land for recreational purposes like hunting, fishing, hiking, camping, and more. Properties that can be used for recreation and are close to a growing city are especially great options to flip.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Contact_the_Owner\"><\/span>3. Contact the Owner<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once you find a property that has potential, it\u2019s time for the hard part: getting it under contract. The first step is to contact the owner. Most state or county websites can determine who owns a property by simply entering the address, parcel number, or other information. When you know who owns the property, you can look for their contact information.  If the land is listing on PropertyOnion.com then you can use our <a href=\"https:\/\/propertyonion.com\/skiptrace\/skip-trace.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"skip trace service (opens in a new tab)\">skip trace service<\/a> to find their phone, email and mailing addresses.<\/p>\n\n\n\n<p>In some cases, the land is already listed for sale, and the owner is eagerly waiting to make a deal. In other situations, you may have to make a pitch. <strong>You want to be upfront with your intentions. <\/strong>Some landowners may be hesitant to work with an investor, and no landowners like to be misled.<\/p>\n\n\n\n<p>Land flippers use a number of techniques to start a conversation with landowners. Some target multiple properties via a mass mail campaign, others try to get the owners on the phone, while some will just go knock on the door.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Get_the_Property_Under_Contract\"><\/span>4. Get the Property Under Contract<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Spend some time crunching the numbers to make sure you can not only stay under budget on your deal but turn a worthwhile profit. <strong>The goal is to purchase the land for less than the actual market value.<\/strong><\/p>\n\n\n\n<p>Determining the market value for land is more difficult than it is for a house. To figure out how much a house is worth, you can usually just look at similar houses in the same area to create an estimated value. While using a <a href=\"https:\/\/propertyonion.com\/education\/how-do-you-read-an-appraisal-report\/\" target=\"_blank\">sales comparison approach<\/a> for land is certainly possible, the available data may not be as recent or readily available.<\/p>\n\n\n\n<p>If you\u2019re not sure how to estimate the value of raw land without comps in the area, you could use a system called&nbsp;<a href=\"https:\/\/landspeedtech.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Price Boss<\/a>. This app allows you to take data from websites like Zillow, Craigslist, and LandWatch and come up with data to help drive your decision. While estimating a land\u2019s market value is more of an art than a science, having some data to back up your decision brings peace of mind.<\/p>\n\n\n\n<p>Once you get the owner to agree on a price, it\u2019s time to create a contract. <strong>In most cases, you won\u2019t actually purchase the land. <\/strong>The seller will sign an assignment contract that makes you a <a href=\"https:\/\/propertyonion.com\/education\/9-dos-and-donts-to-wholesale-legally-in-florida\/\" target=\"_blank\">wholesaler<\/a>, someone who has the right to sell to another buyer. You still may have to make payments on the land if it doesn\u2019t flip right away, so make sure you know what costs are associated with controlling the property for a few months, a year, and more.<\/p>\n\n\n\n<p>If you decide to fully purchase the land, perhaps to make some improvements or build a house, you\u2019ll need to close on the property. While you can complete the land purchase yourself, it\u2019s a rather complex process. Unless you\u2019ve been down this road before, it\u2019s best to use a title company or real estate lawyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Find_a_Buyer\"><\/span>5. Find a Buyer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that you have the property in your possession or under your control, it\u2019s time to turn it around and sell it for a profit. How quickly the property is sold depends on the quality of your listing and marketing efforts. Of course, you have to also consider the type of property, location, starting price, etc.<\/p>\n\n\n\n<p>To get started, create a quality property listing. Get great photos of the property, highlighting special elements that may be of interest. Write a compelling listing that describes the property, potential uses, and so on. You can even create a video to showcase the property.<\/p>\n\n\n\n<p>Post the property for sale in as many places as possible. This includes websites like Zillow, Realtor, and Trulia. You can also work with a real estate agent to help increase your reach, but keep in mind <a href=\"https:\/\/propertyonion.com\/education\/should-you-hire-an-agent-or-fsbo\/\" target=\"_blank\">an agent is going to get a commission<\/a> from the sale. Make sure to tell the neighbors and post in Facebook groups. <strong>The more people that know there is land for sale, the better.<\/strong><\/p>\n\n\n\n<p>When you get an interested buyer and an agreed-upon price, it\u2019s time to close the deal. Depending on the complexity of the deal, you may need to enlist the help of a title agency or real estate attorney, especially if you are acting as a wholesaler (where you are actually flipping the contract instead of flipping the actual property).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Land_Flipping_Has_Potential_in_Your_Real_Estate_Strategy\"><\/span><strong>Land Flipping Has Potential in Your Real Estate Strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most real estate investors are so caught up in looking for houses and buildings to flip or manage that they overlook the massive opportunity in flipping land. Of course, not everyone has the time or interest to jump into a new venture.<\/p>\n\n\n\n<p>If you are looking for a way to get into real estate investing or are hoping to expand your strategy into new areas, land flipping is a great option. It\u2019s often overlooked, which means there are few people in the game. If you can get a good grasp on finding, buying, and flipping land, you\u2019ll be one step closer to your financial goals.<\/p>\n\n\n\n<p>Be patient and ease into the process. While the overall concept of flipping land isn\u2019t too different from <a href=\"https:\/\/propertyonion.com\/education\/10-house-flip-costs-you-can-cut-corners-on-but-these-10-you-shouldnt\/\" target=\"_blank\">flipping a house<\/a>, it\u2019s not exactly the same. Your real estate attorney can help with the legal aspects, and you can always look for a real estate agent that specializes in land for sale.<\/p>\n\n\n\n<p>If you\u2019d like to learn more about the ins and outs of land flipping, there are several reputable online courses and masterclasses, like the&nbsp;<a rel=\"noopener noreferrer\" href=\"https:\/\/www.landprofitgenerator.com\/offers\/_coaching\/apply.php?r\" target=\"_blank\">Land Profit Generator<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/members.retipster.club\/store?_ga=2.19821311.695899772.1644030647-651954289.1644030647&quot; \\t &quot;_blank\" target=\"_blank\" rel=\"noopener\">ReTipster<\/a>, that can offer additional insight. If you&#8217;re ready to jump right into the search for the perfect property, check out <a href=\"https:\/\/propertyonion.com\/property_search\/\" target=\"_blank\">PropertyOnion.com&#8217;s property search tool<\/a>. <\/p>\n\n\n\n<p>There\u2019s plenty of land out there, and there\u2019s never been a better time to start exploring if land flipping is for you than right now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most real estate investors are already familiar with the idea of house flipping. In simple terms, you buy a house, make a few repairs and upgrades, and sell the house for a profit. Some investors&hellip;<\/p>\n","protected":false},"author":36,"featured_media":4160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[25,401,67,57,402,36],"class_list":["post-4137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-land","tag-land-flipping","tag-real-estate","tag-research","tag-strategy","tag-wholesale"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=4137"}],"version-history":[{"count":6,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4137\/revisions"}],"predecessor-version":[{"id":4161,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/4137\/revisions\/4161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/4160"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=4137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=4137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=4137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}