If you’re interested in land flipping, you’ll benefit from learning a bit about the land flipping cycle. Granted, not every land flipper will follow the same type of plan, but there are some common steps flippers take to successfully make the flip. Today, let’s look at several tips to consider if you’re interested in purchasing and reselling land.
- Look at the market
Doing market research is usually the first thing that will occur in the land flipping lifecycle. As you do your research marketing, define what your criteria is. What size acreage are you seeking? What location? Price? Also, do some research when it comes to zoning laws. You can find a great deal of information from the county in which the property is located or your preferred data service.
- Use direct mail marketing
When you’re seeking motivated sellers, using a direct mail campaign can be quite effective in landing great deals. The first thing to do is craft a strong sales letter to send to the owners of the vacant land. This is certainly cost-effective. You can get your data regarding property owners from the county or your preferred data service.
- Respond to inbound leads
After your launch your direct mail campaign, chances are you’ll get some inbound leads. To maximize these, know ahead of time how you will manage them. You may get an email, a phone call, or the lead may come in from your website. For the phone calls, consider creating a customized, professional voicemail greeting. You can also customize your website so that motivated sellers will be able to input their property information right away. This way, when you reach out to them, you’ll have had the chance to look over their information and perhaps come up with an offer.
- Set us a system for making offers
You certainly don’t want to spend unnecessary time researching properties where the sellers won’t be remotely interested in your offer. Therefore, find a system that works for you, so you can spend more time on properties where you have a better chance of having your offer accepted.
Some investors make a blind offer in their direct mail marketing letter, offering the most they’d be willing to pay for such property. If you know enough about the property to know your best offer, you can do this too. This can keep those who aren’t interested from reaching out to you, saving you time.
- Additional research
If your offer is accepted, it’ll be time to do some additional research, as you’ll want to know if there are any issues with the land. If you think the seller will disclose all the information you need, think again. There may be some problems they neglect to share. Do your homework. Look at comps and market value. Check for back due taxes, zoning, terrain, etc.
You can close the deal conventionally, with an attorney and title company, (better if land is over $10K) or you can close yourself for land valued below $5k. Granted, only close on your own if you are familiar with the ins and outs of closing.
- Sell the land
Now that the land is in your possession, it’s time to list, promote, and sell it. The time it takes to sell will depend on various factors, including how you market the land, the price, and the market. Usually, investors learn along the way in regard to what’s most effective when it comes to marketing and selling property.
Hopefully, the land sells quickly and you’ve made a great return on your investment. Feel free to repeat these steps with another piece of land, paying attention to any valuable lessons you’ve learned along the way.
As you continue your land flipping investment journey, pay attention to what works and what doesn’t, and adjust your strategy as necessary. Just as in any business, things don’t always go as planned, and sometimes you’ll have to contend with challenges. Learn from such challenges and keep pressing forward. Be consistent, and if you find yourself really struggling with something, feel free to reach out to a seasoned investor or mentor for some advice. Having that expertise at your fingertips can make a world of difference.