Land Flipping
December 29, 2018
Real estate investors can flip and wholesale a lot more than just single family homes. With competition fierce, and it becoming harder to make the numbers work on regular house flips and rentals, many may find a new sweet spot in flipping land deals.
Here are five ways to do it…
Flip Lots to Complete Larger Parcels
Developers can lose a lot of time, money, and energy trying to piece together large enough parcels to build their visions on. Many owners can be reluctant and very resistant to directly selling to these big developers, or at least demand wild prices. If you can get in an secure prime lots and then wholesale them to these developers you can add a lot of value, and get paid well. This can work anywhere, those may be especially profitable if you can get ahead of new developments in prime markets around new tech companies.
Solar Land Deals
John and Kyle of Land Mentors say that solar is one of the fastest growing niches in real estate. While some housing metrics are already falling, this sector is growing by over 50%. They’ve proven there is a lot of money in securing viable lots for solar farms, and then flipping them to developers or inking leases and adding a lot of cash flow and high yields to them.
Flipping Vacant Lots to Neighbors
With increased building many homeowners are finding their views being blocked, or their privacy and peace increasingly depleted. These owners typically aren’t good at chasing down owners and negotiating deals. You can inject yourself here and serve up neighboring lots on a silver platter. This can range from very inexpensive lots, to prime parcels that celebrities and executives like Mark Zuckerberg are willing to pay millions for.
Add & Extract Value by Clearing Lots
Simply clearing lots for new homes can cost money. It can also be difficult for potential buyers to see the full potential when lots are overgrown. Snapping up these lots, cashing in on their timber rights, and clearing the land can create more cash upfront, and increase resale price potential.
Subdivide Larger Parcels for Homesites
Another easy way to add value and speed up the sale of land is to subdivide larger parcels into individual homesites. There are probably fewer buyers for 100 acre parcels, than for 10 acre lots. Yet, many are willing to pay a lot more per acre for these smaller plots of land. You may even be able to retain several lots for your own portfolio for free in the process. You can hold them long term, build a home on them, or generate cash flow with your own solar lease deal and provide energy to owners who buy the other lots.