How to Start Land Flipping Business as a Newbie

In this article, I will share everything you need to know about land flipping for beginners, from how to find it, how much it can cost on average, how to find those sellers and how to do the due diligence so that your investment can become successful. 

Land flipping is one of the best investments on the face of the earth as there is close to no maintenance like a residential or commercial property where you have to manage a lot of things to make a profit. Here, you just buy and leave it. And with time, it will appreciate in value. As you know, the land is the only investment that doubles its value every ten years.

Is Land Flipping Profitable?

Land flipping is very profitable, but there is always some risk. Find land that is situated in a good market, has the potential to appreciate fast, and is priced well below market value for any reason. So you can make a profit by making some improvements to it.

For example, the asking price of raw land is $40,000, and it has some documentation problems. But the market value of the land is $50,000. If you buy that and solve all the document problems, you can make a good profit of $10,000. That is the beauty of raw land investing with always a full of demand in the market.

How to Find a Land for Flipping?

First, the kind of land you need to make a profit is rare and might not be valuable in the online market. You will mostly find them via referrals from a friend or family member. It is how people identify those raw lands that are under market value and not available to everyone.

But you also must look at the online services that are reliable, and works well in your area. Some online services are as follows.

  • Land Watch
  • Lands Of America
  • Land Leader
  • Land Flip
  • Land Century
  • Land Modo
  • Homes and Land
  • Land Broker
  • Land Search
  • Land Hub
  • Land Central

After finding some raw land, you must do the due diligence on them. We will discuss that in a minute but first, understand how much those lands cost you and whether you are prepared to invest that amount of money.

How Much Does It Cost?

How Much Does Land Flipping Cost

The price of land can vary depending on where you live, its size, and the market condition in that area. You can expect to pay anywhere from $500 per acre in rural areas to $20,000 per acre in a big city.

The more land you buy as a lot, the cheaper the prices will be. If land costs you $3,000 per acre, you can buy 10 acres by paying $2,500 per acre, as you are buying them in a lot. You have to check how much they cost in your area and then think about flipping, as it takes pure cash most of the time for raw land flipping.

How to Arrange Cash for Flipping?

The best answer is to use cash. Most land investors use cash to flip land. It gives them many advantages on taxes and profits. If you try to borrow money from the bank, they might reject you as most banks do not consider land flipping a good investment as it does not generate cash flow normally like a residential property.

So, either use your money or find a partner interested in land flipping. But the problem with raw land investing is that you have to invest a lot of money here in cash. If you can arrange that good, if not find a partner.

How to Contact Land Owners?

If you know the original owner, visit him and make an offer to buy the land. But if you don’t know him or he lives far away from you, and you do not have any info about the land owner, then Skip Tracing is your only option to find his address, ph no, email, and other helpful info.

After knowing the owner, you can call him, send direct emails or knock on their door for an offer saying: 

  • Hi, I am john, a land investor. I heard you want to sell your land. If you are interested, we would like to offer you $40,000.

Then the negotiation begins, and if you think it’s a good investment, you buy it. That is the process of finding that owner.

Due Diligence Methods on Raw Land Investing

Due Diligence Methods on Raw Land Investing

The list of due diligence is huge from verifying those documents and checking the owner background to following the local laws in the area on that land. The list will go in, but here is the most unnoticed analysis that most people forget to check.

  • Discover all the utilities and how far they are from the land.
  • Is he has the authority to sell the land?
  • The amount of due taxes.
  • The cost of similar land there.
  • Make sure there are no liens on the property.
  • Check HOA guidelines.
  • And all the hidden details that most sellers do not want to reveal.

It’s best to hire someone who has the right experience of what to look for in raw land investing. It may save you from many frauds.

Why do People Sell Raw Land for Less Money?

You might be wondering why anyone wants to sell their precious land for less money than what is actually worth it. The reason can be anything. For example, if the owner wants to move to a new place, has some documents issue with the land, is facing trouble selling it, or the land is situated in an area where he can not have full control over it, then a quick cash offer from you may solve their problems.

People will only sell a property below market price if he is in need of money soon or the property has some good problems, and they can’t solve them all. Otherwise, no one will give you land for less price. You work to find those kinds of raw lands.

Last Words

So these are the best tips for land flipping for beginners as you know how to find good land, how much they may cost you, how to arrange the money, how to do the due diligence, and how to reach those owners via lead generation methods. I wish you the best of luck. Thanks for making it to the end. See you soon.

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