Land Investing Income Report – November 2023

December 02, 2023

Welcome to the November 2023 Land Flipping Income Report.

In this report, I will show you in detail how I brought in $896,886.59 in revenue this November in my land flipping business.

I’m breaking down each deal I did and all the other significant numbers of our business, like revenue, gross profit, and much more.

And, if you’ve never heard of land flipping, I will show you why I think it is the biggest opportunity in the real estate investing space.

It’s much easier than flipping homes, and you can be very successful without using any of your own money to buy these properties.

I’ll show you how to do this later in the report.

I’m a big fan of the land flipping model of real estate investing. As you’ll see, it can be very lucrative and also rewarding.

We resold our first property using this model in March of 2021, and we’ve been growing rapidly ever since.

This report is just one type of content I produce around land flipping. There is so much more available for free!

We dive deep into land flipping in our real estate investing podcast, Turning Profit. You can find us on YouTube and other major podcast platforms.

Before we get into the report, I invite you to join our Land Conquest land flipping community.

This online community is not your typical “group.” It’s an actual community of people interested in flipping land. We’ve got a great mix of brand-new and experienced investors generating more than $1 million annually.

The community is built around a brand new and FREE training program that will show you exactly how to flip land the way we do it. This high-quality training program has hundreds of hours invested in it, presented in a unique and fun way.

To join, go to LandConquest.com and click any of the orange buttons to start an epic journey that could change your life!

JOIN HERE

So why in the world would I publish a report like this for the whole world to see?

I’ve got three big reasons for doing this:

#1 – Motivate myself to improve our business (nothing like putting it out there to the whole world to drive progress).

#2 – Motivate you! You’ll see what’s possible and learn valuable lessons (at my expense) that will allow you to become a better real estate investor yourself.

#3 – Gain exposure for our new Land Flipping Community.

We also like connecting with other investors or lenders with similar goals. You can find us on social media on Instagram, YouTube, TikTok, or by email.

Before we get into the numbers, here’s a simplified explanation of how this business works:

We send letters (actual offers) to landowners.
Some landowners respond and are interested in selling.
We come to an agreement on the price and work towards closing the deal.
In the meantime, we research the property in depth by sending out a photographer, calling the county/city, getting an opinion from a local broker, and many other little things on our checklist.
Assuming everything looks good, we complete the purchase with our own cash through a reputable attorney/title/escrow company.
After closing, we will sometimes make minor improvements to the property, such as brush clearing, perc test, surveying, or other things.
We list the property using a local broker to market it to the MLS, their buyers list, and neighboring landowners.
We negotiate a deal when a buyer steps forward.
We complete the sale at the negotiated time.
Rinse and repeat!

A couple of other notes:

We buy these properties nationwide and rarely see them in person.
Purchase prices on the properties range from $4k to $476k.

That’s about it! It’s really just buying and selling land.

The main thing that makes this business work is that we buy aggressively so we can resell it for an attractive price to buyers. That allows us to sell quickly. We can negotiate good purchase prices because we pay cash and will close quickly.

Now that you know the basics, let’s dig into the numbers.

Here are the November 2023 statistics:

November was a really solid month overall.

Believe it or not, it fell a little short of expectations and shy of the results we achieved over the previous two months.

But how can I be disappointed with $896k in revenue? (I’m not)

I’ve got big goals, and I’m constantly pushing to reach those goals. I know that business is not one straight line upward. It’s a roller coaster ride with some ups and downs.

We finished off the month with $896,886 in Revenue.

It fell slightly shy of the million-dollar mark, but we were pretty close.

The important figure is the gross profit, though. In November, we made $335,549 in gross profit.

This was a really healthy number and up there with some of our better months.

We’re in a major growth phase of the business now. We’re investing a lot of the profits into building our team, bringing in more leads, and setting up infrastructure that will allow us to keep growing.

In November, we sold nine properties. This is also a solid number. We’ve done more sales, but not by much. I’d like to be over ten regularly, but my focus is on bigger deals as we move forward. The quantity of sales each month is less important than some other metrics.

Our average gross profit per deal in November was $41,943. This figure has been trending up considerably this year. Bigger deals typically mean bigger profits.

Last year, we averaged about $23,000 in gross profit per deal. Keep reading to see where we’re at year to date.

The average days in inventory for these properties was 74.32 days.

This is a GREAT! We’ve been averaging over 100 days in inventory this year on our sales.

The properties we sold this month were all relatively fresh inventory, so we didn’t have any “stinkers” that dragged down the average.

Ideally, I’d like to keep this number below 90 days. Speed is everything in this business. Fast flips keep our money moving and amplify the returns on our investment.

In November, we sent out 36,808 offer letters. This is a little lower than we are used to, but we’ve shifted some of our marketing budget to Cold Calling and Pay-per-click advertising. We’re working hard to get multiple lead generation channels to bring us more deals continuously.

I’ll report on the progress of these lead channels as soon as I have some solid data to share.

We’ve also started doing deals through our Partner with Pete program. This is our funding program where investors bring us deals, we fund them and plug them into our processes, and then we split the profits with the investor. It’s a win-win scenario for all sides.

The investor doesn’t need to come up with the money to purchase the deal or worry about any of the processes involved with the transactions, due diligence, marketing, etc. Plus, there is no downside or potential loss for the investor that brings the deal. If a deal turns out to be a loser, all that risk is on me.

Get all the details of the Partner with Pete funding program here.

Deal by Deal Breakdown:

In this section, I break down each deal. The goal of this is to show you how deals vary, lessons learned, and what is possible in this business.

These are all the deals that closed in November 2023. We purchased the property (normally in a previous month) and then resold the property to a new buyer in October.

*** Identifiable details of these properties have been altered slightly to protect the anonymity of the parties to these transactions.

Purchase Price = The amount we paid for a property, including closing costs

Revenue = This is the total revenue generated after paying commissions and closing costs

Gross Profit = Revenue – Purchase Price – Property Specific Expenses – Buying/Selling Expenses

Days in Inventory = The number of days we owned the property

Return on Investment = Gross Profit /Purchase Price

Deal #1 notes:

This was by far my worst deal of the month.

This deal was brought to me through the Partner with Pete program. After analyzing the deal, I realized there wasn’t enough projected profit to split the proceeds as usual. But I did think there was still some upside of about $10k in profit.

I told the investor I couldn’t partner on the deal but would buy the property if they wanted to assign it to me for $3k. They agreed, and we took over as the buyer in this deal.

It was a nice 3.77-acre property that was wholly unimproved and fully wooded. During the purchase process, we had a perc test suitable for a mound septic system typical for the area.

All looked good, and we closed on the purchase. The investor that brought the deal got paid $3k as soon as we completed the buy.

We immediately listed it on the market with a local land agent for $39,900. It sat on the market for a while with limited activity.

We decided to reduce the property to $34,900. After another few weeks, a cash buyer stepped forward, and we negotiated a deal at $30k.

It’s possible I could have held out for another buyer to get a little more, but I felt it was time to move on. I knew this wasn’t going to be a big profit property.

Here are the numbers of the deal:

Purchase Price: $19,479.2 (includes $3k assignment fee)

Original List Price: $39,900.00

Contract Price: $30,000.00

Gross Profit: $4,164.70

Hold time: 86 days

Return on Investment: 21.38%

Overall, a 21% return in less than three months is a good deal for us. However, it made us only about $4k overall, which doesn’t really move the needle in our business anymore.

Deal #2 notes:

Our investor partner made over $14,000 in less than a month by bringing us this deal.

This 5.35-acre property was fully wooded and unimproved.

The investor brought us this deal and wanted to know if we would fund this deal for them. They had already lined up a perc test, which appeared to be a deal.

I agreed to fund this deal, and we would split the profits. As part of the deal, my team handles all of the processes of the flip.

Everything went smoothly on the purchase and research.

The property passed the perc test, and no other red flags popped up.

We closed the purchase and listed it immediately with a local agent for $79,900.

Interest was strong, and we got a solid offer right away. We negotiated a deal at $72,500, which was very close to what we had initially projected.

Closing went smoothly, and the deal was done quickly.

Here are the numbers of the deal:

Purchase Price: $36,880.50

Original List Price: $79,900.00

Contract Price: $72,500.00

Gross Profit: $12,334.88

Partner Profit: $14,284.88

Hold time: 32 days

Return on Investment: 33.45%

This was a solid deal for us and our investor partner as well. We had a little more expenses, so our gross profit was lower than the partner’s.

Deal #3 notes:

This 15-acre land flip made us $62,000 in profit.

This deal came to us because we sent an offer to the property owner in the mail. They called us back and expressed an interest in selling the property.

We worked out a deal that made sense for us and them.

This property was fully wooded and untouched for many years. It was a jungle, and it was hard to even walk onto the property.

I knew this was going to be a problem for potential buyers. Because of this, we decided to invest some money into brush clearing after we purchased the property.

Due to the timing of the work, we held the property for about 45 days before they could get the work done. This made a huge difference, and after it was done, we immediately got an offer.

The closing went smoothly, and we finished the deal.

Here are the numbers:

Purchase Price: $62,013.40

Original List Price: $139,900.00

Contract Price: $125,000.00

Gross Profit: $35,381.31

Hold time: 104 days

Return on Investment: 57.05%

We spent about $6k to get the brush cleared. I’m convinced this made the difference and allowed us to sell this property to a retail buyer. The only thing we could have done better is to have lined up the work on the property sooner so we didn’t waste about 45 days.

Deal #4 notes:

This land flip more than doubled our money in 48 days.

We generated this deal through our direct mail outreach. We sent an offer letter to this owner and worked out a deal for this vacant piece of land.

It was 5.95 acres, fully wooded, and accessed by an easement. It was virtually untouched and hadn’t been used for anything in many years.

I knew this property had some potential, but I also knew that only certain types of recreational property buyers would be interested.

I was confident I could make money from this deal, so I completed the purchase.

We listed this parcel with a local land broker who has sold many properties for us in the past. A buyer stepped up after a couple of weeks, and we worked out a deal at $38,000. It was over $10k less than the asking price but still left us a sizable profit, so we went for it.

Here are the numbers of the deal:

Purchase Price: $13,705.42

Original List Price: $49,900.00

Contract Price: $38,000.00

Gross Profit: $19,071.11

Hold time: 48 days

Return on Investment: 139.15%

Anytime we can double our money, it’s a good deal. This time, we surpassed that and made it happen in only 48 days.

Deals #5 & 6 notes:

This was a 109-acre land flip that made us $121k in less than two months.

This deal was a combination of 2 separate lots that we bought separately and sold together as one large property.

This deal came to us because we sent an offer to one of the property owners in the mail. They called in, and we settled on a deal to buy the property.

The seller told us that her brother also wanted to sell the neighboring property, so we contacted him and negotiated a deal.

These were nice properties with a combination of meadows, farmland, and wooded areas. I knew they would appeal to buyers, so I was excited to get these properties listed.

The agent suggested we list these properties together as one parcel to attract a buyer looking for a large, premium property.

We listed the properties for $352,000.

We got a cash offer for $340,000 in just a few days and signed the deal.

Here are the numbers of the deal:

Purchase Price: $176,744.96

Original List Price: $352,000.00

Contract Price: $340,000.00

Gross Profit: $121,097.66

Hold time: 54.5 days

Return on Investment: 68.52%

This was an excellent land flip for us. These lots sold quickly, and we made a hefty profit. I need more of these deals!

Deal #7 notes:

This long and skinny land flip made us almost $8k.

Like many deals, this one came through our direct mail outreach. We sent an offer letter to this seller in the mail, the seller responded, and we worked out a deal.

This lot is 5.3 acres, but it is super long and skinny.

I don’t typically like to buy properties like this because they are hard to resell. But the price seemed too good for this area to pass up, so I decided to go for it.

Half of the property was farmland, and the other half was wooded. Even an old house at the edge of the woods was in complete teardown condition.

I decided to leave the house, but I hired a soil scientist to do a perc test to make it as turnkey as possible for a new buyer.

I originally listed this property for $49,900 with a local real estate agent. That price seemed to be market value.
I soon realized we were overpriced because we weren’t getting any offers. We gradually reduced the price until we got down to $29,900.

At this point, a buyer stepped up and wrote an offer. We worked out a deal at $23,000, which was less than half of what I had thought.

In hindsight, I should have reduced the price much faster because it took us nearly six months to sell.

Here are the numbers of the deal:

Purchase Price: $11,362.00

Original List Price: $49,900.00

Contract Price: $23,000.00

Gross Profit: $7,994.07

Hold time: 172 days

Return on Investment: 70.36%

When you look at the return on investment, this is a good deal, but it was small for us. Next time, I’ll stay away from those long and skinny lots!

Deal #8 notes:

This rural 40-acre land flip made us $73,000 in just 57 days. Here’s the story.

This seller responded to an offer letter we sent them in the mail. We worked out a deal and then got the purchase closed pretty quickly.

The property was over 40 acres and fully wooded. It was unimproved and was mainly suitable for a recreational property.

Because of this, I knew we couldn’t sell it for top dollar.

I listed it with a local real estate broker for $244,900. We waited about 30 days, and we didn’t get any offers. Then, we reduced it to $225,000 and received multiple offers.

We worked out a deal with a cash buyer at the new asking price and closed the transaction.

Here are the numbers of the deal:

Purchase Price: $125,640.64

Original List Price: $244,900.00

Contract Price: $225,000.00

Gross Profit: $73,365.36

Hold time: 57 days

Return on Investment: 58.39%

This was an excellent land flip with a large amount of profit. I love deals like this, and I’m always looking for more.

Deal #9 notes:

This 54-acre land flip made us $62k in just 41 days. Here’s the story:

This seller contacted us because we sent them an offer letter in the mail for their property.

They responded and told us they wanted to sell but had a large tax lien on the property. We made a revised offer and let them know we could pay off their lien at the purchase closing.

The amount of the lien was just factored into our offer price, which was lower than it would have been. They thought the lien was about $20k.

The property itself was recreational. It was fairly sloped, but it was overlooking the river. There was also a destroyed RV on the property.

When the title company obtained the exact lien payoff, it was about $40k. We let the seller know we could pay an additional $10k over what we originally agreed, but the balance would need to be deducted from their proceeds. They agreed, and we closed the purchase.

We listed the property with a local real estate agent for $162,000.

In a matter of days, we had a quick close cash offer at the list price.

Everything went well with the closing, and 41 days later, this deal was done.

Here are the numbers of the deal:

Purchase Price: $75,173.75

Original List Price: $162,330.00

Contract Price: $162,330.00

Gross Profit: $62,140.08

Hold time: 41 days

Return on Investment: 82.66%

The lien on this deal made it more complicated, but it was definitely worth the effort!

Year to Date 2023:

2023 Year to Date (YTD) Statistics

Through the end of November, we’ve brought in $7,479,509 in revenue.

That’s an average of $689,955 per month.

With only one month left, it’s clear that I won’t hit my original goal of $10 Million in revenue for 2023. But I’ll be somewhat close!

While revenue and cash flow are great, profit is the most important metric. Through November, we’ve brought in $2,582,364 in gross profit.

That’s an average of $234,760 per month.

Gross profit only accounts for property-specific expenses. These are the cost to purchase the property, buying/selling transaction expenses, commissions, and any due diligence and property improvement expenses. It does not include our staff, marketing expenses, software, and other business overhead. We’ve been focused on expanding the business and investing a lot of our profits into doing this.

We’ve sold 84 properties so far in 2023. That’s an average of 7.6 deals per month.

The year-to-date average gross profit per deal is $30,742

Last year, we averaged $22,223 per deal, so this trend is encouraging. The higher I can push this figure, the better.

Our average hold time on all our deals this year is 107 days.

Last year, we averaged about 75 days in inventory. This year, the market is slower in general. We’re also focusing on larger deals, which tend to remain in inventory a little longer.

I’d like to get this figure below 90 days. To do so, I need to minimize outlier deals where we hold the property too long. This means quicker price reductions and better marketing.

The returns detailed above are very substantial. That is especially true when you consider the hold time and annualize the Return on Investment.

Let’s use Deal #4 as an example.

The return on investment was 139.15%, a solid return for almost any short-term investment. What makes this special, though, is that we only held this property for 48 days. When you do the math and annualize this return (if you were to keep this money invested for the whole year), the annualized return on investment would be 1,058%!!

Where are you going to find returns like that?

You’re crushing it if you’re getting a steady 10% a year in the stock market.

But if 10% a year is crushing it, what is 1,058% per year?

How can you do the same thing as an investor and get these kinds of returns?

The first thing you’ve got to do is start learning.

It’s not rocket science, but it’s also not as basic as it seems.

Here’s a short list of some of the basics you’ve got to learn to make this land flipping model work:

How the business model itself works
How to get the leads coming in
Where the best regions are to find deals
How to evaluate properties; what makes a good property and what makes a property not desirable
What software and tools to use to give yourself an unfair advantage
How to talk with property owners that want to sell
How to navigate the escrow/title process in multiple different states to buy a property
How to find the best on-the-ground partners in each location
How to find a buyer for your property in a short amount of time for a good price
How to negotiate with sellers and buyers.
How to build a team so you’re not doing everything yourself
How to put a business system in place to automate processes and keep your business organized

If you want to find deals and flip land as a part-time investment strategy or a full-fledged business, you must first learn how to do it.

I can solve the learning problem for you. Simply go through the extensive training program available for free in my Land Conquest community.

Both the community and training programs are 100% free with no catch. It’s not some sort of junk course that will leave you with more questions than answers.

It’s all the knowledge you need to start your own land flipping business and make money.

There’s no catch.

This training would cost thousands elsewhere, but I give it away for free.

Here’s what community members are saying about it:

I know what you may be thinking. This all sounds great, but I don’t have the cash to buy and sell these properties.

Don’t worry. This is the easiest “problem” to solve.

I have a program called Partner with Pete (partnerwithpete.com). If you find a deal, just submit it here.

As long as it’s a real deal, I’ll fund it. You don’t have to come up with any of the money.

In fact, my team and I will take it from there, complete all the research, find an agent to sell it for us, and lots of other necessary parts of the process.

When the property sells, we split the profits 50/50. Simple!

No credit check, qualifications, experience, or anything else is needed. You just bring the deal, and we’ll split the profits!

There is no downside or risk for you as an investor. If a property loses money, all that risk is on me.

Get all the details here: PartnerwithPete.com

You can also find a bunch of free content on our YouTube channel and our podcast about land flipping and real estate investing.

Just as a disclaimer, investing money comes with risk. Research any investments heavily before putting any of your money at risk. Risking more than you can afford to lose is never a good idea.

You can also check out this page that features other podcasts and outlets where I’ve been interviewed and talk about land flipping. I’ve appeared on over 60 podcasts and am booked for many more in the coming months.

Want to benefit passively from my land flipping business? I’m looking for private money lenders who want to earn a great return (12%+) on their money secured by these deeply discounted properties we’re buying. If you have funds over $250,000 available, check out the program details on this page.

We know that the figures in this report may seem unattainable at first glance, but this did not just “happen” overnight. Like any business, we made progress and improvements over time to reach our current level.

It will only happen if you take the first steps to get started!

That wraps up the November 2023 Income Report. Sign up here to be notified the minute a new report is published.

P.S. Want to network with other serious investors and get our full training program? Learn about our Land Conquest membership program here.

P.P.S. In case you missed it, here are the links to my past income reports:

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Latest Income Reports

Land Investing Income Report – December 2023

Overall, December was a really solid month. We closed out the month with $711,721 in Revenue. It didn’t stack up to October and November, where we topped a million in revenue, but it was pretty close.