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7 Reasons Why Flipping Land Surpasses Other Real Estate Strategies

CEO Khai Intela
Did you know that flipping vacant land is one of the most profitable but often overlooked real estate strategies? In fact, it might just be the best one out there. As an experienced real estate...

Did you know that flipping vacant land is one of the most profitable but often overlooked real estate strategies? In fact, it might just be the best one out there. As an experienced real estate investor, I can confidently say that flipping land offers unique advantages that set it apart from other strategies.

What is Flipping Land?

Flipping land is a straightforward concept. You buy a parcel of vacant land at a significantly lower price, typically around 5-35% of the market value, and then sell it at a much higher price, usually 50% - 80% of the market value. It sounds simple, but like any other business, it requires hard work and dedication to succeed.

The Buying Arm and The Selling Arm

In the land business, there are two essential components: the buying arm and the selling arm. When buying a property, you go through market research, marketing to find motivated sellers, lead processing, due diligence, and finally, closing the deal. When it comes to selling a property, the process is much simpler, involving marketing to find buyers, lead processing, and closing the sale.

Now, let's dive into the 7 major reasons why flipping land surpasses every other real estate strategy.

1. The Incredible Returns

No other asset class in real estate can provide the jaw-dropping returns that flipping land does. It's not uncommon to make over 100% ROI on a single land deal. Just imagine buying a property for $5,200 and selling it for $13,000 within 5 months, resulting in a staggering 119.62% ROI. These incredible returns are not limited to a few lucky investors; they are consistently achievable in the land flipping business.

2. Deals are Easier to Find

Finding reliable and consistent deals is often the biggest challenge for real estate investors. However, in the land flipping business, the opposite is true. Finding deals is the easy part. It's the selling that requires more effort. Unlike other strategies that involve substantial marketing costs, land flipping only requires minimal investment in direct mail campaigns. With every thousand letters, you can expect 1-2 deals. It's like clockwork as long as you keep your mail out there.

3. Cheaper Funding Options

One of the major pain points in real estate investing is financing. Compared to other strategies, land flipping is much more affordable. While wholesalers often buy properties between $15,000 - $35,000, land flippers can secure properties for as low as $1,000 - $5,000 each. This significant difference in acquisition costs makes land flipping a much more cost-effective option.

4. Minimal Competition

At real estate networking events, you'll find wholesalers, rehabbers, and buy & hold investors. But rarely will you come across land flippers. The land business is still largely untapped, with many people unfamiliar with its potential. Unlike other strategies, where increasing competition can make finding deals difficult, the land market is vast and easily supports multiple investors. With 97% of land in the United States considered undeveloped, the potential for deals is virtually limitless.

5. Recession Resilience

During an economic downturn, the land business remains strong. Due to the ability to buy properties inexpensively from motivated sellers, land flippers can typically sell properties for what they bought them for, even in a recession. In fact, recessions often lead to even better deals as more people are motivated to sell. Additionally, land flippers have the option to offer seller financing, enabling them to turn a significant profit even if buyers default on their payments.

6. Cash Flow Potential

Besides the remarkable returns on sale prices, land flippers can also generate recurring cash flow through seller financing deals. It's not uncommon to make over 100% ROI on the sale price alone and earn an additional 15% interest per year. With such favorable terms, land flippers can maximize their profits even further. Even if a buyer defaults, land flippers can assume control of the property and resell it.

7. Avoidance of Common Real Estate Problems

In real estate, tenants, termites, and toilets are often the source of many headaches. But with land flipping, you don't have to worry about any of these issues. As long as you find the right deal at the right price, your only concern is selling it. No more dealing with tenant repairs, termite infestations, or plumbing issues.

While flipping land certainly offers numerous benefits, it's important to consider a couple of drawbacks. Firstly, land flipping is an active business that requires constant effort. If you're looking for a passive investment, this might not be the right choice for you. Secondly, selling properties can take longer compared to other strategies. Although the turnaround time is similar to flipping houses, it requires more hustle to find buyers.

If you're intrigued by the potential of flipping land, take the next steps to explore this lucrative opportunity. Find land deals, conduct proper due diligence, and learn effective selling strategies. Flipping vacant land has the power to transform your life, and I hope this article has provided the catalyst for your real estate success.

Resources:

  • How to find land deals: [link1], [link2], [link3], [link4]
  • Due diligence before buying land: [link5]
  • Selling land: [link6], [link7], [link8]
  • Get started today: [link9], [link10], [link11]
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