Beginners Guide To Land Flipping:
Learn In Under 15 Minutes
What is "land flipping"?
Common terminology: Due Diligence, Scrubbing data, ROI
This is always the first question we get asked, and over the years we have found that so many people out there have no idea what it is! The process involves buying vacant land for 30-40% of what it’s worth, then re-selling it to get a massive ROI.
We have developed our personal land flipping model over a span of years, with the intent to teach others how to make a substantial income, as well as how to create your own potential freedom through land flipping. Although there are shared steps with other land investing models, we have found this specific method to be the most effective and sustainable.
Follow the proven step-by-step method below to get a glimpse into what it takes to become an expert land flipper!
CHOOSING A MARKET
The first step in our land flipping model is deciding on the region & county that you want to buy land in. We recommend picking one region to start and to look at rural areas near where you are from.
The goal is to select a county where land sells well. Utilize sites such as Zillow or Redfin to see what the market looks like for land in the county you are interested in. A desirable location means less time to turn the property & get you closer to earning your money.
- WHAT TO LOOK FOR:
What types of land are people selling? What does the acreage look like? How are they priced? Do the comparable properties have road access? Sewage? What are the local and state laws that could affect your transaction?
PULLING/SCRUBBING DATA
Once you have made your county selection, you are ready to pull data based on that area, which will later be used to send mail to that county.
We have had lots of success using the software DataTree, but there are other sites available that offer similar features. What you’ll end up with is a massive excel file that will ultimately need scrubbed of “bad data” such as: school properties, government owned, HOA’s, bad addresses, etc.
- TIPS: Try organizing your excel sheet properly from the start,
it will save you a lot of time in the long run. Â
PRICING
Once you have exported your county data, the next step is pricing! This part of the land flipping cycle is CRUCIAL. In order to make money on the land you purchase, you are going to want to PURCHASE it at the correct price.
Look at parcels that have already sold in the area you are targeting. What is the average price of comps, days on market, margin, etc.
Base your offer percentage on the comparable parcels you pulled in the last section. Again, we recommend making a price that is 30-40% of what it’s worth.
SENDING MAIL
Now is when we get to put all of our hard work out there into the world! First you will want to create a letter introducing yourself, as well as include a purchase agreement AND a cash offer for their land. We have a template for this here that is free to use.
Next you are going to want to select a mailing service that will reliably send out mail to your selected county. We use Rocket Print. Typically these services involve uploading your spreadsheet and selecting specific requirements you’d like the service to provide.Â
- We always recommend sending 2,000 to 2,500 mailers in order to get the best return on investment that you are looking for. We also offer a Direct Mailing solution if you are unsure of one to use. Click here to learn more!Â
SALES & NEGOTIATION
Get ready for the calls to come in!! Our sales process involves managing the intake of calls from potential sellers you sent mail to. You will be faced with many different types of leads, and it is up to you to showcase your value and navigate a successful sale for both parties.
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Remember, your offer was created from research & comparable from properties in the area and should
be treated as such. This is the part of the deal that will determine your profit, so make sure you navigate these calls with care.
RINSE & REPEAT
As you near the end of your first land flipping cycle, take a minute to reflect on the steps above and ask yourself these questions:
- What went well?Â
- What didn’t go so well?
- What could you do to make the cycle even more efficient?Â
- Should you change the county you targeted?
- Did you send enough mail?
- Could you have handled prospect calls differently?
- How quickly did the property sell?Â
- What could you spend LESS time on?
- What could you spend MORE time on?Â
Once you’ve reflected on your first deal and made any necessary changes, it’s time to jump back in! The only way to become an expert land flipper is by DOING. You will learn something new every time you flip a piece of land, so apply these lessons to each and every deal and you will see your ROI skyrocket.
SCALING UP
After you have streamlined and perfected the land flipping cycle above, you are ready to SCALE UP your business!
Repeating the cycle, and getting more comfortable with the process from start to finish will set you up for amazing long term profits. With these profits, you can re-invest and fund your own land deals, or try funding others’ deals to take some of the work-load off yourself! Learn more about deal funding here.
NEED HELP MASTERING THE PROCESS?
If you are interested, but still not sure where to start with your own land investing business, come check out our premier land flipping course where you’ll get access to 30+ course training modules, private land investor only Discord channel, state-of-the-art resources, weekly webinars and so much more!