By: Danielle Pietersen | December 28, 2020
What Is Land Flipping?
Most people are familiar with the idea of flipping a house. A real estate investor will buy a house that is in poor condition for a significant discount, give the house a makeover, and then sell it for a higher price.
Land flipping is similar to house flipping. Instead of buying a house though, you’re buying vacant land. Essentially, land flipping is buying undeveloped land for a price that is below market value and then selling that piece of land at a better price to make a profit.
How To Make A Profit by Flipping Land
There are a few ways to go about flipping land. Some land flippers will buy unwanted and neglected parcels of raw land for a bargain and then improve them by clearing the land or even leveling it before selling it on.
Most land flippers are making money by actively seeking and marketing their land flip projects. They typically search for bargains and find land which is owned by people in financial distress or who need to get cash out of their investments quickly. These are often properties that aren’t even listed for sale.
A flipper will often offer the owner a quick and easy cash sale. Then the land flipper will get to work marketing the property and selling it on to the next buyer at an inflated, more market-related, price. Essentially a land flipper is actively seeking out properties to buy for a bargain and then aggressively marketing the piece of property to turn a profit.
The flipped land can be sold for cash, but more commonly, flippers make money by offering the buyer financing and allowing them to pay the land off over a set period of time, with interest. Buyers are usually required to make a down payment and then pay the remainder to the lender over the agreed-upon time frame.
Flipping Land Full-Time
People who get really good at flipping land may find that it can turn from a side hustle into a full-time job. Land flipping is a great way to work towards financial freedom, but it’s important to realize that land investing takes a lot of work and is not risk-free. Land investors need to research well and do their due diligence to understand the land contract and zoning of each unit that they buy. If they overpay or take too long to sell the property, they could end up losing money.
Full-time land flippers need to have a sound business model in place which guards their cash flow and takes into account the expenses associated with land flipping. These could be costs like closing costs and the marketing of the property.
How To Get Money To Buy Land
Making a good land deal starts with having some money to invest. Most of these transactions are done in cash and are generally for far smaller amounts than other real estate investing, which makes them a good entry point.
There are two ways to start saving money, you either need to earn more or spend less. Usually, a combination of these two approaches is most successful.
1. Earn More
Taking on a side-gig is a great way to start earning more money. You could do some freelancing or find ways to earn extra money online.
2. Spend less
Check your budget and see where you can save and start putting money towards your land flipping plans. Know where you’re spending and take control of your budget. Shop smart where you can.
No Time To Save?
Most people don’t have all that much time and energy to dedicate to earning and saving money. If you’re low on time and looking to save, you should look to a site likeSwagbucks. Swagbucks is a great website that can help you save money when you shop online and offers rewards and cash for performing simple tasks like answering surveys, watching videos, or even shopping. It’s low-stress and you can easily complete tasks during your lunch break or while you wait to pick up the kids from school.
Learn While You Save
Saving up money may take you a little while. Make the best use of the saving-season by doing research and learning all you can about flipping land. Work on your business plan. Learn the tricks. Flipping land can be risky, but if you put in the time and effort, you can start generating a good income on the side and maybe one day even make it your full-time job.
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