Land Investing Income Report – October 2023

November 01, 2023

Welcome to the October 2023 Land Flipping Income Report.

In this report, I will show you in detail how I brought in $1,424,943.40 in revenue this October 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 October 2023 statistics:

October was our best month ever in many ways!

It was also our second consecutive month topping $1 million in revenue.

We finished the month with revenue of $1,490,252. For reference, that’s more revenue than I generated in 2021 (our first year in the business).

If I stay at this pace for the next 12 months, that would be over $17 million a year in revenue.

That’s easier said than done, but I know it is possible.

The gross profit for October was also a record! This came in at $519,898.

Gross profit accounts for all the property-related income and expenses, but it does not take into account any general business expenses like my team, marketing, software, overhead, etc.

This blows away the previous high watermark of $305k I achieved in September (last month).

The revenue is great, but the gross profit is the one metric that is most important to me.

In October, we sold ten properties. This isn’t a record, but it is a pretty good amount. Going forward, I think we can easily average 10+ deals per month and likely a lot more into the coming year.

We made an average of $51,989 in gross profit per deal. This is well above our average, historically $21k to $23k. This year, that figure has crept up to over $26k through September.

Keep reading to see all of our year-to-date statistics near the end of the report.

My focus has been on larger deals, and I’m getting better at picking the winning properties. I’d like to say that $50k+ is sustainable, but that would mean I would pass up on smaller but very profitable deals.

The average number of days in inventory this month was 149.4 days. That is VERY high compared to our average. The reason is that I had two deals that we held for an abnormally long period of time. These skewed this average considerably. Keep reading for more information on those deals.

The last statistic I track is the number of letters sent, which came in at 34,819. While this is low, we also started spending a considerable monthly budget on cold calling and pay-per-click.

I’ll be reporting on our results with those methods of lead generation as the data comes in. I aim to establish multiple profitable lead-generation systems for our business.

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 October 2023. We purchased the property (normally in a previous month) and then resold the property to a new buyer in September.

*** 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 one of one my worst land flipping deals ever!

Not every land flip goes perfectly. This deal is a prime example of that.

I bought this property over a year and a half ago. At the time, I thought it was a pretty decent deal.

As soon as I closed, I got a perk test done, and it passed. Then, I put the property on the market for $44,900, a price I thought would attract a lot of attention.

We found a buyer pretty quickly, and we were under contract for $37,000. This buyer was getting a land and home combo loan, which takes a long time.

This buyer ultimately got declined for their loan, but we were under contract for about 90 days before we found out.

The same thing happened with another buyer and then another.

Every once in a while, you have a bad streak of luck on a property.

The end result was that this property was on and off the market for over a year. We had to keep reducing the price to get the interest of buyers.

We finally had a serious cash buyer step up and close the transaction.

Here are the numbers of the deal:

Purchase Price: $17,691.60

Original List Price: $44,900

Contract Price: $24,900.00

Gross Profit: $2,594.81

Hold time: 571 days

Return on Investment: 14.67%

Even though it was one of my worst deals ever, I still didn’t lose money. In hindsight, this was a nice property. It was just a string of bad luck that evaporated any chance for a meaningful profit.

Holding a land flip for over a year and a half is not the way this business is intended to work.

Deal #2 notes:

I doubled my money on this land flip in less than 30 days. Here’s the story.

We found this deal because a seller responded to one of our offer letters.

It was a nice property but located well down a long easement road. This meant it was private, but it also may be a deterrent for some buyers.

When he called in, he told us he had a 2nd parcel he wanted to sell that was directly beside the first.

We worked out a deal for both parcels and agreed to close the deal.

As soon as we closed the purchase, we listed the property with a local broker.

In a matter of days, we received a solid cash offer on the table that we accepted.

Here are the numbers of the deal:

Purchase Price: $25,933.00

Original List Price: $64,900.00

Contract Price: $59,500.00

Gross Profit: $26,101.78

Hold time: 29 days

Return on Investment: 100.65%

This deal worked out great because it happened so quickly, and we were able to double our money.

Deal #3 notes:

Here’s a below-average land flip that still made us over $8,000

This deal came to us because a seller responded to an offer letter we sent them in the mail.

When he called in, we looked at the property in detail and decided to move forward on the deal.

This was a wooded, 19-acre property in a very rural area. There were absolutely no improvements at all.

We closed on the property purchase and immediately listed it for $49,900.

There wasn’t much interest in the market, so we gradually reduced the list price until we got down to $39,900.

At that point, a buyer stepped forward, and we agreed to sell the property at $38,000.

Here are the numbers of the deal:

Purchase Price: $24,028.83

Original List Price: $49,900.00

Contract Price: $38,000.00

Gross Profit: $8,612.17

Hold time: 134 days

Return on Investment: 35.84%

In hindsight, we should have listed the property for $39,900 from the start. Then, we likely would have sold the property much quicker than we did.

Deal #4 notes:

We made $61,000 on this land flip in just 72 days.

This 29-acre property was a combination of woodland and meadows. Some of the property was previously used as an animal pasture and had some fencing.

Overall, it was a nice property, and I knew it would sell quickly if I got it for the right price.

This deal came about because the seller responded to one of our offer letters. When he called in, we settled on a price and signed a contract.

Right after we closed, we put the property on the market for $119,900.

Within days, we had a full-price cash offer with a 60-day close.

Everything went smoothly with the closing.

Here are the numbers of the deal:

Purchase Price: $41,075.76

Original List Price: $119,900

Contract Price: $119,900.00

Gross Profit: $61,241.42

Hold time: 72 days

Return on Investment: 149.09%

This deal was really solid because we only invested $41k and got back $61k in profit in only 72 days.

Deal #5 notes:

Here’s a really solid land flip that made us a nearly 50% return in 75 days.

This deal happened because the seller responded to our offer letter in the mail.

They called in and we negotiated a little higher price to put a deal together.

The location of this property was great, but it was likely just a recreational property instead of a homesite.

We closed the deal and immediately listed it with a local land agent.

After a couple of weeks on the market, we got a solid cash offer for $10k under the list price. It was a pretty solid deal, so I agreed and signed the contract.

Closing went smoothly, and this turned out to be a good deal all around.

Here are the numbers of the deal:

Purchase Price: $61,698.36

Original List Price: $119,900.00

Contract Price: $110,000.00

Gross Profit: $30,800.98

Hold time: 75 days

Return on Investment: 49.92%

The end result was over $30k in profit in 75 days, making it a solid land flip.

Deal #6 notes:

Here’s a land flip that made us $27k in under four months.

This deal started like most do, when a seller responded to one of the offer letters we sent in the mail.

The property was a 12-acre rural piece of land on a paved road. The parcel was fully wooded with no improvements at all.

After several conversations with the seller, we worked out a deal and moved towards getting it closed.

After closing the deal, we listed it for sale with a local land broker for $79,900.

There were no improvements needed on this property.

It sat on the market for almost 60 days before we got it under contract with a buyer. Usually, we would have reduced the price a little. It was getting good activity, so we left the list price unchanged.

Soon, a solid buyer stepped forward at $79,900. They wanted to get a perc test as part of the contract, which we agreed to.

There were some delays with getting that test done, but it ultimately passed, and we got the deal closed.

Here are the numbers of the deal:

Purchase Price: $42,204

Original List Price: $79,900

Contract Price: $79,900

Gross Profit: $27,184

Hold time: 113 days

Return on Investment: 64.41%

This is a pretty typical land flip in terms of the profit, hold time, and returns.

Deal #7 notes:

$23,000 profit in just under two months with this land flip.

The story begins with a call from a landowner. He was responding to an offer letter that we sent him in the mail.

The letter we sent him detailed the amount we were willing to pay for this 15-acre rural property.

The seller agreed to the price and the terms of the deal.

The property was pretty overgrown. It was tough to even walk onto the property because of all the high grass and weeds.

But, the location was good on a major road, and I knew it was a diamond in the rough.

We closed the deal in about 30 days with cash.

After closing, we immediately sent a company to clear all the high weeds and grass from the property.

Doing this made the property marketable to a new buyer.

Next, we listed it with a local land broker for $69,900.

After a few days, we received a solid cash offer for the full list price.

Closing went smoothly, and here are the numbers of the deal:

Purchase Price: $36,194.50

Original List Price: $69,900.00

Contract Price: $69,900.00

Gross Profit: $23,858.05

Hold time: 59 days

Return on Investment: 65.92%

This is a classic example of where a little money invested into dressing the property led to a quick sale and more profit. It would have been tough to sell with all the overgrown weeds.

Deal #8 notes:

We flipped this massive 1500-acre-plus property in 38 days.

This was our biggest and most profitable land flip yet.

The best part is that an investor partner brought this deal to us through our Partner with Pete program and profited a tremendous amount as well.

The investor on this deal originally had it under contract for a purchase price of $800k. While it appeared there was an upside, I felt there wasn’t enough profit to justify such a significant investment.

I told him that the purchase price would need to be at least $450k to fund the deal because I estimated a conservative resale price of $900k.

My goal is to double our investment before accounting for commissions and closing costs.

The investor was able to renegotiate with the seller, and they agreed to a $450k sale price.

There were some initial challenges with this deal because there was a locked gate leading to the property, and the neighbors claimed this property did not have access through that road.

We received the title report and confirmed that this property did, in fact, have deeded access through the road.

The property was beautiful, with rolling hills, wildlife, views, and a year-round stream. It’s hard to even imagine how large 1500 acres is.

The property purchase went smoothly, and we listed the property with a local land agent expert.

He immediately started getting a good amount of interest because the price was attractive, and few properties of this size hit the market.

In a matter of a couple of weeks, a cash buyer stepped up, and we negotiated a deal.

Here are the numbers:

Purchase Price: $462,681

Original List Price: $999,000

Contract Price: $979,000

Gross Profit: $261,966.46

Hold time: 38 days

Return on Investment: 56.62%

Our investor partner also profited $185,067. We usually do 50/50 profit splits, but this deal was slightly different due to the large purchase price.

We bought this property with a combination of our own cash and a loan from a private lender. Since there were additional costs, fees, and risks associated with getting a loan, we agreed to a 60/40 split instead.

At the end of the day, our investor partner ended up getting a wire transfer for over $185k with no risk for them and no money out of their pocket. They brought the deal, and we did everything else.

I need more deals like this! Have a great deal? Submit it to PartnerwithPete.com, and let’s partner on your next deal!!

Deal #9 notes:

This was a very unique and profitable land deal that took a lot of twists, turns, and time.

This story starts with the purchase of a 5-acre property that we purchased in October 2022 for $18,511.57, including all closing costs.

I bought the property with the intent of mapping it out for a small subdivision of homes. I didn’t plan on actually completing the subdivision. Still, I wanted to show what was possible and then market it for sale with a commercial broker to achieve a higher sale price. So, before it even closed, I had an engineer that we’ve worked with in the past get to work drawing it up. This is what he came up with.

I was happy with what he proposed, and the commercial broker suggested that we list the property for $145,000! While that sounds great, I didn’t know we would achieve that high of a price. Anywhere close would be a great deal for me.

But this is where the story starts to get interesting. A few days after closing the purchase, I received an email from a gas company representative. The email explained that they were working on putting in a new gas pipeline along the highway (northern edge of the property). Basically, this pipeline would require an easement about 50 feet into the property. For this permanent easement, they offered to pay me $17,000.

A day later, I also got a letter in the mail from the city. During our due diligence on the property, we discovered there was a sewer line on the property. It wasn’t recorded on the title, but we knew it was there and were ok with that. The city must have realized this was not recorded, so their letter offered to pay me $990 to make it official.

I carefully reviewed the plans for the pipeline, and I realized it would have minimal impact on our proposed subdivision. We basically had to shift things to the South slightly. I decided to counter the offer from the gas company at $25,000. After a bit of back and forth, they agreed to do it.

After a few weeks, I received a check for $25,000 from the gas company. In addition, we received the $990 from the city that same week.

By this point, we had paid $18,511.57 for the property and about $1,500 for the engineering sketch plan. We had received a total of $25,990 to grant the easements. That left us at $5,978.43 in profit, and we hadn’t even sold the property yet.

The marketing of this property took way too long. We started at a list price of $145,000 and gradually reduced the property over the course of a year down to $79,900.

At that point, a buyer stepped up and offered full price if we sold with owner financing. We never hold notes, so we worked out a deal and sold the note at closing.

We had to take a 20% discount on selling the note, but this got the deal done, and the property sold.

Here is the end result:

Purchase Price: $18,511.57

Easement Income: $25,900

Original List Price: $145,000.00

Contract Price: $79,900.00

Gross Profit: $60,043.76 (after factoring in everything)

Hold time: 378 days

Return on Investment: 324.36%

The end result was a tripling of our money in a year. We would have sold this property much quicker if we had listed it for a more reasonable price from the beginning.

But, hindsight is 20/20, and I am definitely happy to triple my money in a year.

Deal #10 notes:

A 55% return on this land flip in just 25 days.

This 10-acre wooded property was a great example of how profitable and powerful the land flipping business can be.

Where else can you make a 55% return on a super-safe investment in just 25 days?

This deal came to us like most when we sent an offer to the landowner in the mail.

The owner called in and told us he was interested in selling but wanted a slightly higher price to put the deal together.

I was confident that we could sell the property for a decent profit, so I agreed to come up in price to put the deal together.

We closed the property quickly with our own cash.

Then, we listed it immediately with a local land broker for $59,900.

After a day on the market, we got a cash, quick close offer and worked out a deal at $55,500.

In a few weeks, the sale was closed without a hitch.

Here are the numbers of the deal:

Purchase Price: $31,387.70

Original List Price: $59,900

Contract Price: $55,500.00

Gross Profit: $17,494.60

Hold time: 25 days

Return on Investment: 55.74%

I love selling properties this quickly. It keeps our money moving and is the key to huge returns over time.

Year to Date 2023:

2023 Year to Date (YTD) Statistics

Through the end of October, we’ve brought in $6,582,622 in revenue.

That’s an average of $658,262 per month.

I’ve only got a couple of months left, and it looks like I won’t hit my initial goal of $10 Million in revenue for the year. Still, let’s see how close I can get!

While revenue and cash flow are great, profit is the most important metric. Through October, we’ve brought in $2,246,815 in gross profit.

That’s an average of $224,681 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 76 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 $29,563

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 110.75 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.

Plus, we had two deals this month that really threw off that average. One was 571 days in inventory, and the other was 378. Without these two factored in, the hold time on the other eight deals was an average of 68 days.

Pushing this figure below 90 days is ideal. 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 #10 as an example.

The return on investment was 55.74%, a solid return for almost any short-term investment. What makes this special, though, is that we only held this property for 25 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 813.8%!!

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 813% 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 October 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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