In this week’s episode of the Turning Profit podcast, Pete and I discuss how you can start your own land flipping business.
If you’ve listened to our first few episodes, then you know we started land flipping a little over a year and a half ago.
We’ve seen some great results with it, and we want the same for you!
Lucky for you, in this episode, we’ll be sharing with you eeeeverything you need to know to get started in land flipping today and work on creating generational wealth.
Listen in as Pete and I talk about land flipping, how it works, where to start, and everything in between.
Are you ready?
Let’s dive in!
What Is Land Flipping?
We know, we know, we’ve already broached this subject a few episodes ago. But for those of you who haven’t listened to that episode (or who have simply forgotten, because let’s be real, many of us don’t have the greatest memories), here’s a quick breakdown:
Simply put, land flipping happens in three main steps: You buy the land, you make some simple changes to it, then you sell it.
Of course, this is only a simplified version of the whole model, since there is a lot of work that gets done before you even get the property and in between every step.
For example, before we even buy a property to flip, we go through a lot of cold mailing work. We send hundreds of thousands of letters to landowners offering them to buy their property.
And once someone answers and is interested in our offer, we have to do a lot of research and talk to a few brokers to really understand if that land will make us any profit.
Then comes the actual purchasing, then doing some minor work on the property, marketing it, finding the right agent to sell it for us, etc… As you can see, it’s not just one and done. It’s a process (quite a short one though) and every step needs to be finished before we move on to the next.
Why You Should Start Land Flipping
Every real estate model comes with its pros and cons. We’re not going to lie to you and say it’s all sunshine and rainbows here in the land flipping world. But, it’s not bad either, and we have been able to make great money from this business model.
The Pros of Land Flipping
The Possibility to Make Great Profits
All a land flipper does is purchase land from a seller at a low price (usually below market price) and quickly sell it for a profit.
This is especially true for investors who have the patience to research properties, find the most profitable ones, and do everything possible to buy said properties and make the right changes to them.
Little to No Maintenance Costs
If you buy land and hold it for a long time, you’ll have to pay taxes and make sure to maintain it so that it appreciates over time.
If you buy a house and decide to rent it, you (again) have to pay property taxes on it and spend a lot of money to maintain it, repair any damages, pay the bills if you have no tenants, etc…
This is where land flipping truly shines. You’re keeping the land for such little time that you have barely any maintenance expenses. You don’t have to repair damages done or pay for electricity bills because you’ll be owning that land for only a few weeks before you sell it for a profit!
There isn’t much competition in the land flipping world. Very few real estate investors truly recognize the opportunities that come with land flipping and use it as a business model in their endeavors. So, if you’re worried about competition, we are here to tell you: There’s plenty of opportunities for everyone!
The Cons of Land Flipping
It’s an Active Investment
Flipping land requires active and ongoing marketing efforts. It requires building relationships with real estate brokers and agents in your preferred states, and most importantly, it requires you to invest your time because you’ll be researching lands and reaching out to hundreds or thousands of sellers daily.
It also requires exhaustive and daily outreach efforts. For example, in November 2022, we sent over 50,000 letters to prospective sellers!
Buying and flipping land for profit is an active investment, and that means you always need to be on top of things.
If you’re looking for passive income, then land flipping might not be for you.
Selling Can Be Difficult
Sure, finding the right land to buy is easy, selling it though, that’s another story. It might take you longer than usual to find the right buyer and sell for a good profit. However, this might not be a problem for you if you follow the tips Pete shares today in the episode above.
We discuss all of this in more detail in the episode above (plus share a few stories with you, like that time we bought a… lake!), so make sure to give it a watch or a listen! We promise, it’s worth it.