One of the most common questions land flipping business owners ask is “How do I value a piece of land?” In this episode, of the Forever Cash Podcast, I’ll discuss one of the ways you can do this by looking at the value of houses in the surrounding area.
This podcast was recorded as part of our Winning Wednesday live series. Every Wednesday at 10AM PST on the Land Profit Generator Real Estate Investing Facebook Group, I answer your questions and delve deep into real topics that affect land flipping business owners.
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How To Value Land
The first way you, as a land flipping business owner, can value land is by using the assessed value.
This is not 100% reliable, but – depending on your state – it can give you a ballpark figure. What’s crucial to understand is that market value does not equal the assessed value. Instead, the assessed value is a percentage of market value.
However, the main method for valuing land that I want to discuss is backing the value of the property by the value of the surrounding houses.
“Typically, as a rule of thumb, the land on which a house sits is worth 15 – 30% of the total house value.”
We’ll take a look at real-life examples from our students and help them determine the value of their land parcels.
Scale your Land Flipping Business
Starting January 18, we are hosting a Land Flipping Masterclass where we will teach you how to make 2021 your best year yet. Land flipping is on fire right now and no matter where you are at in your journey, this masterclass will help you level up your land flipping business.
All you need to do is go to https://www.landprofitmaster.com to register and follow the instructions you’ll receive via email. Register now to get a head start and get access to the workbooks so that you can prepare.
- Discover the techniques we use to value land
- See real-life examples from our land flipping business owners
- Find out how you can become a Land Flipping Master