Flipping Land

Would you like to flip property but find houses too expensive and stressful?

Consider starting your real estate career by flipping land instead.

Unlike house flipping, land flipping costs less to get started, involves fewer risks, and you don’t have to spend a dime on renovations to make a sale.

An Overview of Land Flipping: A Primer

Similar to house flipping, land flipping is a real estate strategy that involves reselling a lot in a short timeframe to make money.

Land flippers purchase vacant land at wholesale prices by finding good deals, often through public auctions of tax-defaulted properties. It’s then sold at around market value for a quick profit.

Land flipping has a distinct advantage over house flipping and other investment strategies — it’s low-risk and low competition.

Since land is a limited resource, its value appreciates over time, protecting your land flip prospects from inflation and market fluctuations.

Another advantage  when you flip vacant land is that you’re not limited by area. You can buy and sell land anywhere across the country without ever laying foot on it.

How Much Can Land Flipping Earn You?

You can expect to earn an average of 30% to 60% on each piece of land you sell.

The key is to buy the land at a fraction of the market value. Unlike house flippers, who may pay up to 70% of a house’s value, you shouldn’t exceed 35%.

When selling, aim for 80%+ of the market value. Skilled flippers consistently get a return on investment of over 100%.

If you can find a buyer who agrees to owner-finance the land, all the better! Seller financing allows you to ask for the full market value plus interest.

Or you could just hold it and become a landlord once you have the money to build a property.

How Much Does it Cost to Start a Land Flipping Side Hustle?

The main cost of land flipping is the land itself. If you’re interested in raw land flipping, you can find parcels as cheap as $100.

However, infill lots in urban areas that have plumbing and other infrastructure taken care of can go for well over $100,000.

In addition to land, you’ll have to pay legal and permit fees and taxes, which vary by state.

And unless you’re a real estate agent, you should seriously consider taking a few courses about land flipping before you start investing. These are in the $500 to $2,500 range.

Another often overlooked cost is marketing. Word-of-mouth marketing is great, but you’ll typically have to resort to email marketing and ad campaigns to garner enough attention. These costs are in the $200 to $1,000 range.

If you plan to do this professionally, you should get liability insurance, which is a few hundred dollars per year.

Where Can You Find Land To Flip?

Land is sold on many different real estate platforms. But since your goal is to find land well under the market value, you’ll have to utilize some lesser-known strategies.

Where to Independently Find Land to Flip

One of the best and most reliable ways to find cheap land is in public auctions of tax-defaulted land.

Property becomes tax-defaulted when a landowner fails to pay property taxes for five years. The government sells the land to the highest bidder to cover the taxes.

And since buying random land isn’t exactly a popular pastime activity for most laypeople, your only competition will be other land flippers.

Other ways to grow your land flipping business network are via LinkedIn, by attending real estate events, or by joining clubs where most real estate investors in your area hang out.

Conveniently, this gives you another opportunity to network, which is an excellent way to find undeveloped land to buy.

Gig Economy Platforms That Offer Land to Flip

Here are some of the best websites to find and buy land for flipping:

• Landflip: This is a great place to find cheap land through auction-style bidding.
• Zillow: The #1 real-estate platform is perfect for finding smaller lots in urban areas, which are usually in high demand.
• Landwatch: This is the best place for flippers looking to buy large properties, some of which are well over $10 million.
• Land & Farm: If you want to focus your land-flipping efforts on farmland, this is your new favorite website.
• Redfin: Though it has fewer lands for sale than others, Redfin has an excellent app that allows you to quickly skim listings on the go.

Why You Should Consider Flipping Land As a Side Hustle

Here are a few reasons why land is among the best things to flip:

• Low competition: Unlike house flipping, renting, and investment trusts, land investing is often overlooked. It’s perfect if you’re just getting started in real estate.
• Cheap and scalable: Don’t get intimidated by listings in the six-figure range; many lots can be bought for a few thousand bucks.
• Profitable: A skilled land flipper can flip a $100 property for $10,000 if they find the right buyer. It can be significantly more profitable than house flipping.

Problems With Land Flipping

Here are some drawbacks to consider before you start flipping land:

• Risky: Like with any other real estate investing strategy, you’ll face serious risks with land flipping, such as losing money and ending up with undesirable land you can’t unload.
• Need for capital: Although some lots are cheap, they’re not always great. You might require a loan to get a great land deal.
• Stressful: You have to remain vigilant to get the best deals. And you’ll occasionally encounter additional costs that can eat into your profits.

Frequently Asked Questions

What is a Land Investment?

A land investment is the purchase of a vacant lot or raw land with the intent to resell it later for a profit. Land typically appreciates in value, which makes this real estate business model less risky than others.

Is Buying Land a Good Investment?

Investing in land can turn out to be the best decision to make. Land often appreciates faster than the inflation rate, so it’s better to have your money in land than cash. And since land is in limited supply, you’ll likely sell it immediately.

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