Land Investing vs. Real Estate Wholesaling: Which Strategy is Best for You?

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Land Investing vs. Real Estate Wholesaling: Which Strategy is Best for You?


When it comes to real estate investing, there are countless strategies to build wealth. 

Two of the most popular approaches—land investing and wholesaling real estate—offer unique opportunities for investors looking to make money in real estate without the hassle of traditional property ownership.

But how do they compare, and which one is the better fit for beginners?

In this article, we’ll break down the mechanics of each strategy, highlight their pros and cons, and explain why land investing might be the best option for those with no prior real estate experience.

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What is Real Estate Wholesaling?

Wholesaling real estate is a strategy where an investor (the wholesaler) finds deeply discounted properties, puts them under contract, and then sells that contract to an end buyer—typically another investor—at a higher price. The wholesaler profits from the difference, known as the assignment fee.

How Wholesaling Works:

  1. Finding Deals – Wholesalers search for distressed properties, often using methods like direct mail, cold calling, driving for dollars, or online lead generation. These properties are usually owned by motivated sellers who need to sell quickly.
  2. Negotiating and Contracting – Once a wholesaler finds a deal, they negotiate a purchase price with the seller and put the property under contract.
  3. Assigning the Contract – Instead of buying the property themselves, wholesalers assign the contract to another buyer—typically a house flipper or rental investor—who pays a higher price.
  4. Getting Paid – The wholesaler collects an assignment fee (usually $5,000 - $30,000) when the end buyer closes on the property.

Pros of Wholesaling:

Low Capital Requirement – Since wholesalers don’t buy the property, they can start with little to no money.

Fast Turnaround – Deals can close in as little as a few weeks, leading to quick profits.

No Property Ownership Hassles – No need to worry about tenants, repairs, or property management.

Cons of Wholesaling:

Highly Competitive – The market for distressed properties is saturated, making it harder to find good deals.

Requires Sales & Negotiation Skills – Success in wholesaling depends on the ability to negotiate deals and build relationships.

Not Passive Income – Wholesaling is an active business model; you have to keep finding deals to make money.


What is Land Investing?

Land investing is the process of buying raw, vacant land with the intent to hold it for appreciation or resell it for a profit. 

Unlike traditional real estate, which involves managing tenants and structures, land investing is a more hands-off approach that focuses on acquiring properties at a discount and capitalizing on their potential value. 

It’s a business model that offers high profit margins with relatively low competition compared to other forms of real estate investing. 

The key to success lies in finding undervalued land, analyzing market demand, and negotiating deals that allow for strong returns.

This strategy allows for high scalability, minimal overhead, and—most importantly—financial and time freedom, making it an attractive path for entrepreneurs looking to break free from the traditional 9-to-5 grind.


How Land Investing Works:

  1. Sourcing Cheap Land – Land investors find deals using platforms like Zillow, Redfin, and The Land Portal or by reaching out to owners directly through mail campaigns.

  2. Buying at a Discount – Investors purchase undervalued land, often from motivated sellers who no longer want to pay property taxes, have inherited land that they can't manage anymore or need quick cash.

  3. Reselling for a Profit – Investors sell the land at a higher price using strategies like owner financing, listing on marketplaces, or flipping to developers or end buyers.

Pros of Land Investing:

Less Competition – Land is a less competitive niche compared to traditional real estate investing.

Low Maintenance – No need for repairs, tenants, or property management headaches.

Scalable Business Model – You can buy and sell multiple properties simultaneously without dealing with physical structures.

Flexible Exit Strategies – Land can be sold for quick cash profits or with owner financing for passive income.

✔ Can Be Done From Anywhere  – Land can be sold and flipped remotely as long as you have a laptop and internet access.


Cons of Land Investing:

Longer Sales Cycle – Selling land can take longer than flipping houses, depending on demand.


Requires Research – Investors need to understand zoning laws, market demand, and land valuation.

Marketing-Driven – Selling land often requires creative marketing strategies to attract buyers.


Why Land Investing is Great for Beginners

For those with no prior real estate experience, land investing can be a smarter entry point than wholesaling.

Here’s why:

Lower Barriers to Entry – You don’t need to negotiate distressed property deals or compete with aggressive wholesalers. Instead, you can find cheap land deals through simple online research and direct mail campaigns.

Less Risk & Hassle – Unlike wholesaling, where deals can fall through due to financing or property issues, land investing is straightforward. You’re dealing with a physical asset that requires no maintenance.

Higher Profit Margins – Since land can be acquired for extremely low prices (sometimes a few hundred dollars), the return on investment can be significant, especially when resold with owner financing.


Which Strategy is Right for You?

If you’re looking for a fast-paced, sales-driven business model that requires strong negotiation skills, wholesaling real estate might be the right fit. 

However, if you prefer a scalable, low-competition strategy that doesn’t involve distressed sellers or complicated transactions, land investing is a much better option—especially for beginners.

With land investing, you can build a profitable business without ever dealing with tenants, home repairs, or aggressive negotiations. Plus, with the right approach, it’s possible to generate passive income through financing deals.

If you’re interested in learning more about land investing, check out The Land Portal, where you can access powerful tools to find and analyze profitable land deals more efficiently than ever before.

Listen to the Latest Podcast


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Dan A.: Welcome back everyone. Today’s episode. We’re going to walk you guys through the land flipping blueprint. What is land flipping? This is going to cover a lot of the basics, a lot of the fundamentals of what it is, why people should get into it, what it can do for you and everything about land flipping, because it’s a, it’s a hot commodity right now around lots of people joining it.

Lots of people getting into it for the same reasons we are.

Ron A.: Yeah. I love this. Reaching some new people with this. Um, people who have been here just breaking down the business model, um, one on one type stuff, but I’m excited to get to this.

Dan A.: So let’s just define land flipping Ron and then kind of I think we start by talking about why Why we got into land flipping but define what it is and what it means

Ron A.: Yeah, I mean, I think it’s flipping anything is buying something and then reselling it for more There can be a lot in between that but at the basis It is buying something, whether it’s a shoe or a piece of land or a house, buying something.

I think flipping is buying something and selling it for more ideally selling it for more. I guess you could lose money on these. Uh, but yeah, buying a piece of land and selling it for more.

Dan A.: And so essentially you’re buying a piece of land under market value. So you’re not going to the MLS a lot of times, which is the, um, you know, I

Ron A.: don’t, I think you start to find it too much and that, uh, like I think you say under market value and you’re assuming stuff.

Um, but I, at the end of the day, it’s flipping is buying something and reselling it.

Dan A.: Yeah, exactly. All right. So, uh, the reasons we got into it, Ron, and with the reasons other people are getting into it are because of the reasons that we can kind of define they’re buying it for less. Because a lot of people want to sell their land out there and reselling it for more, right?

That’s the philosophy behind why it works is because there’s big big margin spreads in it You’re making a lot of money off of each deal. You’re buying it for forty thousand dollars selling it for eighty You’re buying it for ten thousand dollars selling it for twenty two thousand dollars And doing that over and over again buying land under market value and reselling it So you want to talk about some of the reasons people are getting in it?

Ron A.: Yeah, I think the opportunity is the biggest thing why people get into land. Like they see so much noise in other aspects of real estate, uh, whether it’s house flipping or wholesaling houses or, uh, multifamily, so many different things and, uh, sub to so many different opportunities out there and the smartest thing, people I think who are getting into this are evaluating all the opportunities and like deciding, okay, this is the right thing for them.

Um, But I think a lot of people who get into like, like running away from like the noise, there’s a lot of noise around other aspects of real estate that a lot of people talk about and they’re not running away from it. They’re just finding the opportunity. I think that’s why there is more opportunity land because there is less noise.

There is, there are less people talking about it. It’s less known. I think, I think overall, like I think as a whole, that’s why people get into this business.

Dan A.: So you’re saying less competition. Is that what you mean? Less? Yes. Yeah. So there’s less competition, which a lot of times drives the profit up because there’s not as many people in it diluting the space.

And if you guys are familiar with the real estate industries like wholesaling, house flipping, things like that, where, um, essentially you’re taking a house, buying it, uh, and, and flipping it to an investor, wholesaling it to an investor, signing it. To an investor like wholesaling or house flipping where you’re just doing improvements and then reselling it land.

There’s a lot less moving parts and pieces because it’s vacant, right? Um, it’s vacant land. So you don’t need to go through a ton of, uh, steps to improve it or anything like that there. There’s a lot you can do with the land. But overall, the main portion of the business is buying and flipping as is. So it’s very simple while keeping a very high profit margin, it’s a low barrier to enter enter.

So you don’t need crazy amounts of money to get into land, right? You don’t need bank loans and all these complex different things going on. So I think like the simplicity of it is really attractive to Ron.

Ron A.: Yeah, a hundred percent. It’s not, uh, you, I think another thing is you don’t have to be at the property, which house flipping, that kind of stuff, like you definitely can do remotely, but it’s much, much more difficult.

And it’s an, it’s a simple asset when you break it down. Like it really is. A lot of people are overwhelmed by it at first, like comping it out as a little more difficult stuff like that.

Dan A.: What do you mean by that? Yeah.

Ron A.: Which one?

Dan A.: Um, overwhelmed at first by comping it out.

Ron A.: I think just like comping land, it’s like people have looked at Zillow for houses and like trying to find out whether they own a house or something.

Like they’re trying to find out like, okay, maybe the house that they own is worth X dollars. Now they bought it. I think land is a more abstract thing. I think, um, where houses it’s square footage, baths, bedrooms, essentially. And that’s how, and the area is how you do it.

Dan A.: Explain what comping is. So I don’t, I’m sorry.

Yeah. Let’s break it

Ron A.: down a little more. Uh, so a comp comping is essentially like you have a, you have a five acre piece of land, you’re looking for an area. Comping is essentially finding out what market value is for that property that you’re looking at. So if it’s worth 20, 000, you might be trying to buy it for 10, 12, 000, something like that.

So comping is essentially trying to figure out market value for a property.

Dan A.: Yeah, and that goes into kind of how it works. So now we can dive a little bit. I hope you guys have a decent understanding of what it is and what it can do for you. But I want to dive into actually how it works now, a little more granular, Ron, and we can start diving in.

So the basics of it, the fundamentals of it, the philosophy behind it is reaching out to land owners to try to try to buy their land under market value. Because like Ron said, You can buy land over market value in being what they call negative equity, which is you bought it for too much and you’re going to lose money on it.

If you sell it now, that’s negative equity because you bought it for a hundred thousand dollars. It’s only worth 80. You’re in a deficit, 20, 000. That doesn’t happen a lot though, because, um, like Ron just defined what comping land is. If you understand the price before going into it, you can avoid that risk.

At least mitigate it to a very, very low amount to where at the point where we never really see anyone or hear of anyone buying land over market value. And we don’t run into that a lot. Uh, but the whole idea behind it is buying a piece of land under market value and then reselling it for more. So how do you buy a piece of land under market value?

You send, uh, You send out marketing to landowners to reach them to buy it, right? So this is primarily off market. You can do on market based on the philosophy you’re on. If you’re just thinking of what the philosophy is. You can do on market, which means on, you know, listed by a realtor essentially is what on market means.

But a lot of times it’s going direct to the seller, undercutting any middleman. There’s no realtor involved listing the property. There’s nothing going on. These are just land records so we can reach out to everyone who owns land that fits your criteria essentially. Maybe you want five acre lots. Maybe you want ten acre lots.

You can have a criteria and send Marketing, whether it’s texting, cold calling, direct mail, ringless voicemail, which is like you’re sending a voicemail to someone directly. There’s tons of ways to reach out, but the philosophy is reaching out to them directly without going to a middle man. That’s primarily how it’s done.

Ron A.: Yeah. That’s the marketing aspect essentially is trying to get leads. Like you are reaching out to a bulk amount. I mean it doesn’t have to be a bulk amount. You are reaching out to people who own land and trying to buy it. Um, and that’s really the basis of it. We do it at a high scale in terms of like reaching out to five, 10, 000 leads per month.

But you can get deals with 500 contacts per month. You can get deals with a lot, lot less than that. It matters what your strategy is. But as a whole, this pillar of the business is, um, is marketing, essentially. You’re marketing, you’re reaching out. I don’t know if marketing is the right term. We use it a lot.

But you’re reaching out to landowners to try to buy their land.

Dan A.: Yeah. And that, that whole process in general is like acquisitions is what it’s called. We have that as

Ron A.: kind of a separate pillar, Dan acquisitions, where, cause acquisitions, you start to have, like, we can start talking about that acquisitions.

You have like due diligence in it. Um, you have negotiation in it. So yeah, going from that. Okay. So you reached out to 500 people who own land. That’s the marketing aspect. However you did it. Now you have maybe 20, 25 leads. It depends what your strategy is. And now the next. Um, and the next pillar is acquisitions, which is due diligence.

So let’s find out as much as we can about the land. Um, you’re comping at this point, figuring out what it’s worth, uh, before you actually buy it. You might be finding out funding at this point, and we’re probably getting advanced on this Dan. Um, but you’re also negotiating with the sellers. So you have leads come back and now you’re negotiating, trying to actually get to the acquisition where you’re actually buying the property.

Dan A.: So to simplify it, Rowan’s saying marketing gets you the leads. And acquisitions pretty much closes the deal when you acquisitions like your sales hat on, right? And then your marketing’s like, okay, I need leads. What are leads? That’s an interested seller that owns land and interested landowner that wants to sell his land.

Potentially. That’s a lead, right? Marketing’s Like it’s like any, yeah, it’s, it’s, it’s getting as many of those as possible for your acquisitions team, which is you a lot of times. So you go from marketing, and then you put your acquisitions, your sales hat on, trying to close those deals, do the due diligence, get it acquired, all of that stuff.

Very, very simple. I don’t want to overcomplicate it. Right? You’re, you’re sending text, cold calling, mail, whatever method. You want, a lot of times it’s mail, texting, cold calling, um, to get leads that are interested in selling their land and then you’re trying to negotiate with them and get at the lowest possible price so that you can buy it for that 30, 000 for example and resell it for that 60, 000 and that’s the game of this business that we do over and over and over again and the reason a lot of people who are new are going to ask why would someone sell their land for 20, 000 when it’s worth 40, 000.

Do you want to go into that Ron? Yeah.

Ron A.: Yeah. Uh, so you want to get in that part yet? We can get in that part. So the seller’s motivation. So seller’s motivation. A lot of times in this business, the seller sell to us for a discount because of how illiquid land is. I think that’s the number one thing, like them selling their land for full market value is very difficult, especially when you’re talking about

Dan A.: these a little bit deeper.

Ron A.: Yeah. So especially let’s say you own a property and it’s worth 30, 000. If you put it on the market correctly, it might take six, seven months to sell for 30, 000. Um, the issue is you have a property for 30, 000. Who’s going to sell that property? So you’re a seller. You live in rural Georgia and your property’s up in North Carolina.

You’ve got to reach out to realtors. What is a realtor going to say? When you’re asking them to list the property for 30, 000, there’s no money in it for them. Realtors play. Realtors make money based on a percentage of what the property is going to sell for. So 30, 000, they’re not going to make any money.

So you have a bunch of realtors that say no to you. And then you get this offer in the mail for 14, And we send an offer to you. Or we talk to you on the phone. We say, I can get you 15, 000. Give me two weeks. I’ll get you that 15, 000. That is at a, at, at, at scale. That is why people sell to us. It’s the speed that we can get them cash.

Dan A.: Before we get back to the show guys, make sure to leave us a comment and hit that subscribe button and turn on the notifications, Ron, and I read through every single comment individually. It helps us plan our 2025, our topics, what you guys want to hear and helps us improve the show. It means a lot guys.

And let’s get back to the show. Yeah, that’s a good point. And, um, there’s just no money to be made by realtors who are selling it for a 20, 000, 30, 000 piece. It’s in the middle of nowhere. It’s an hour away from a city. There’s not a lot of people around there. So it can be really hard to sell. That is what the term illiquid means.

It’s hard to sell. On the other side, what’s something that’s very liquid is a stock that you can just say, I want to sell now and get that cash right in your bank within a few days or cash is the most liquid. I mean, cash is cash. So that is liquidity. Um, so the closest you can get to having actual cash, the more liquid it is.

And that’s what Ron meant by that.

Ron A.: Real fast, Dan. Um, so, and I know we’ll probably talk about this. Don’t worry if you don’t have 15, 000 cash. You do not need that. There is funding in the community. There’s funding that you can get for this stuff, for the deals. Your job, if you’re, have low, lower capital at the moment, is.

Finding good deals. So if you find that deal, that’s worth 30, 000 and you get a seller under contract for 14, 000, 15, 000, you’re going to be able to find the money in our group, in a community, in a land investor group, whatever it is to be able to fund that. So don’t worry about that aspect. Your job as a new land investor is getting, make getting interested sellers for under market value.

Yeah.

Dan A.: Don’t overcomplicate the funding. That’s. One of the number one, uh, obstacles people have when listening to this, I guarantee is how do I buy a 20, 000 piece of property? Don’t worry about that because there’s plenty of funding around for you of, uh, you have a good deal. You don’t need a bank. You can get funding for the deal with other.

Investor partners in the community. So just people who like to fund deals because the profit and then you come up. Um, I don’t wanna go too big into the weeds, but like Ron said, just don’t worry about that part now. So I think we have an idea around of the business model, how to get leads selling it. Uh oh.

The one thing also is, so we’re talking about it being a liquid, but the thing is, it. So when you have the skill of selling a property, right? So you bought it and you need to sell it when that’s called disposition, disposing the property. Like think of a garbage disposal. You want to get rid of it. So when, when you’re disposing the property, when you’re selling it, there’s ways to make it more liquid and we have good formulas to sell this property for 40, 000 that we bought for 20.

We let, we get great pictures of the property. We spice up the pictures. We have great descriptions. We listed at a great price and we put it everywhere for them to see. Facebook Marketplace, Craigslist, the MLS. So we’re trying to take that asset and, and create a more desirable bundle and put it up to make it more liquid to get us our cash faster, essentially.

The way

Ron A.: we market, we can make things liquid. I know I said initially, like, it’s an illiquid asset. It’s an illiquid asset for someone who lives a thousand miles from their land and doesn’t know how to sell land. Like, that’s what makes it illiquid. You get it in our hands, you get it in other successful land investors hands, it becomes a very, very liquid asset.

It’s not

Dan A.: that complicated once you understand it. For sure. But I don’t really have anything more to add, Ron. What do you got?

Ron A.: No, I think that’s the basis of it, guys. We wanted to keep this very, um, 101 for you so we can kind of compare it. Um, as too many people are

Dan A.: getting distracted. This is more of like, oh, here’s the philosophy behind it, how you go about it.

It is almost irrelevant. It’s the test out

Ron A.: learning the like it really is. It’s a marketing. So you have ads part, which is your marketing and you’re not actually using ads or paid ads. Some people do. I’m not a huge fan of it, but you have the marketing. You reach out to sellers. Okay. You negotiate, you acquire the land and then you sell like that is added in a nutshell what this business model is.

You can become great at those three things you’re going to do extremely well in this business. Um, other than that, guys, appreciate you guys listening. If you guys have any questions. Bye. Put it in the comments below and YouTube hit the subscribe button. Other than that, thank you so much. We’ll see you guys next time.

Thanks for joining guys.

Dan A.: As always, thank you for joining. Please do us a huge favor and like, and subscribe our YouTube channel and share this with a friend. It really means the world to Ron and I, but more importantly, it could help change the life of someone else. Thanks for joining and we’ll see you next episode.

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_background_privacy_mode='false' _background_video_fallback='false' _background_slideshow_gallery='false' _background_slideshow_loop='false' _background_slideshow_slide_duration='false' _background_slideshow_slide_transition='false' _background_slideshow_transition_duration='false' _background_slideshow_background_size='false' _background_slideshow_background_size_tablet='false' _background_slideshow_background_size_mobile='false' _background_slideshow_background_position='false' _background_slideshow_background_position_tablet='false' _background_slideshow_background_position_mobile='false' _background_slideshow_lazyload='false' _background_slideshow_ken_burns='false' _background_slideshow_ken_burns_zoom_direction='false' _background_hover_background='false' _background_hover_color='false' _background_hover_color_stop='false' _background_hover_color_stop_tablet='false' _background_hover_color_stop_mobile='false' _background_hover_color_b='false' _background_hover_color_b_stop='false' _background_hover_color_b_stop_tablet='false' _background_hover_color_b_stop_mobile='false' _background_hover_gradient_type='false' _background_hover_gradient_angle='false' _background_hover_gradient_angle_tablet='false' _background_hover_gradient_angle_mobile='false' _background_hover_gradient_position='false' _background_hover_gradient_position_tablet='false' _background_hover_gradient_position_mobile='false' _background_hover_image='false' _background_hover_image_tablet='false' _background_hover_image_mobile='false' _background_hover_position='false' _background_hover_position_tablet='false' _background_hover_position_mobile='false' _background_hover_xpos='false' _background_hover_xpos_tablet='false' _background_hover_xpos_mobile='false' _background_hover_ypos='false' _background_hover_ypos_tablet='false' _background_hover_ypos_mobile='false' _background_hover_attachment='false' _background_hover_repeat='false' _background_hover_repeat_tablet='false' _background_hover_repeat_mobile='false' _background_hover_size='false' _background_hover_size_tablet='false' _background_hover_size_mobile='false' _background_hover_bg_width='false' _background_hover_bg_width_tablet='false' _background_hover_bg_width_mobile='false' _background_hover_video_link='false' _background_hover_video_start='false' _background_hover_video_end='false' _background_hover_play_once='false' _background_hover_play_on_mobile='false' _background_hover_privacy_mode='false' _background_hover_video_fallback='false' _background_hover_slideshow_gallery='false' _background_hover_slideshow_loop='false' _background_hover_slideshow_slide_duration='false' _background_hover_slideshow_slide_transition='false' _background_hover_slideshow_transition_duration='false' _background_hover_slideshow_background_size='false' _background_hover_slideshow_background_size_tablet='false' _background_hover_slideshow_background_size_mobile='false' _background_hover_slideshow_background_position='false' _background_hover_slideshow_background_position_tablet='false' _background_hover_slideshow_background_position_mobile='false' _background_hover_slideshow_lazyload='false' _background_hover_slideshow_ken_burns='false' _background_hover_slideshow_ken_burns_zoom_direction='false' _border_border='false' _border_width='false' _border_width_tablet='false' _border_width_mobile='false' _border_color='false' _box_shadow_box_shadow_type='false' _box_shadow_box_shadow='false' _box_shadow_box_shadow_position='false' _border_hover_border='false' _border_hover_width='false' _border_hover_width_tablet='false' _border_hover_width_mobile='false' _border_hover_color='false' _box_shadow_hover_box_shadow_type='false' _box_shadow_hover_box_shadow='false' _box_shadow_hover_box_shadow_position='false' _mask_switch='false' _mask_shape='false' _mask_image='false' _mask_notice='false' _mask_size='false' _mask_size_tablet='false' _mask_size_mobile='false' _mask_size_scale='false' _mask_size_scale_tablet='false' _mask_size_scale_mobile='false' _mask_position='false' _mask_position_tablet='false' _mask_position_mobile='false' _mask_position_x='false' _mask_position_x_tablet='false' _mask_position_x_mobile='false' _mask_position_y='false' _mask_position_y_tablet='false' _mask_position_y_mobile='false' _mask_repeat='false' _mask_repeat_tablet='false' _mask_repeat_mobile='false' hide_desktop='false' hide_tablet='false' hide_mobile='false' _attributes='false' custom_css='false']https://www.youtube.com/watch?v=N6p1BNsDLXg[/embedpress]
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