How to go about selecting profitable properties to flip:
The first step in the Land Profit Generator Land Flipping Method is to choose your counties.
Once you have selected your counties, you can get data records from your county office. These records will give you access to the required information and start looking for land deals.
Ideally, you want to look for properties with a market value of between $5,000 – $200,000.
But first, you need to decide the type of deals you want to do as a land investor. You can choose to target properties in the lower market value bracket and do a high volume of these smaller deals. Alternatively, you can target the larger market value bracket to make HUGE profits on a single deal.
Once you choose your property, the next step is to make an offer. You have many options in approaching the seller because there’s so little competition in the market. For this reason, direct mail still works and is most likely your best method.
What is the difference between the Market Value and the Assessed Value of a property for a land investor?
As a land investor, you must understand the difference between the assessed value and the property’s market value.
The Market Value of a property is an estimation of what a property would sell for in a competitive market. It is based on local supply and demand. Alongside, what other properties have sold for in the area, and other criteria.
The Assessed Value is a dollar value that is assigned to a property. It is determined by the state or similar body to measure applicable taxes.
You want to use the MARKET value to select property owners to target with your direct mail marketing campaign.
However, the challenge comes when you can only see the property’s assessed value on the county list.
Therefore, as the land investor, it is up to you to determine the property’s market value using the assessed value.
A Brief Explanation Of Assessed Value
Every state assesses the value of a piece of land proportionally to a ratio of market value. So, the state of Florida values its properties at around 80-90% of market value. This is pretty close, unlike Arkansas, where the assessed value equals 20% of the market value.
It is essential to note that every state uses different criteria to arrive at its assessed value. Therefore, before extrapolating the property’s market value, you must understand how the assessed value has been calculated.
You want to get this critical step in the land flipping process right. As a successful land investor, you do not want to waste time and money marketing to the wrong property owners.
We hope this post has been a helpful first look into your future in land flipping. The fast and easy way to build a 6-figure business without wasting years of your time.