Quick Links
What are the Principles of Land Flipping
Is Land flipping a Full Time Job?
Is Land Flipping Passive Income?
3 Types of Land for Successful Land Flipping
How to Find Land Below its Market Value
How to Find the Most Profitable Properties to Flip as Land Investor
Do You Have to Live in the USA to Flip Land?
2022 Land Investing Market Projection
What Is Land Flipping?
Land flipping is the practice of purchasing raw land at a low value and selling that land at a higher value to the right buyer. The business model is similar to traditional house flipping, but without all of the complications of residential real estate investing.
The most basic land flipping principles involve finding raw, vacant land that the owner no longer wants and offering to buy it for between 5 – 25% of market value. The investor would then get the property under contract and start to market the land to prospective sellers closer to the market value.
The deal is closed when the investor pays for the property and accepts payment from the buyer. The difference between the selling cost and buying cost then becomes profit for the investor, minus closing costs and any costs incurred, including marketing and closing fees.
There are a number of ways to structure land deals, including the double close and seller financing deals. Every deal is different and it is up to the investor how they wish to structure a land deal.
Land flipping is a legitimate business practice, governed by relevant state and federal legislation. You do not need a realtor license to do land deals, but you may need to contract the services of certified professionals, including title companies, real estate brokers, lawyers and a CPA on occasion.
Schedule Your
FREE 30-Minute
Call With One of
Our Land Experts
to Find Out
If Land Flipping is
Right For you
Why is Land Flipping better than Houses?
Would you like to get in on a little-known secret? Land Flipping is one of the easiest and best ways to get into real estate investing. There are three specific reasons why it is simpler and more profitable to flip land:
1. Raw land is significantly cheaper than buying a house, multi-family unit or commercial property. Working in a lower price range results in significantly less risk when making a deal, and it affords the opportunity to navigate multiple listings with less capital.
2. Land flipping profit margins are generally much higher than traditional real estate margins. The difference is largely due to the absence of secondary costs, such as repairing or improving any structures, or infrastructure, on the property earmarked for flipping.
3. Land flipping is an uncontested market. This means that one does not have to worry about other realtors working in that area. In other words, there will always be enough land to go around for everyone.
What is the Land Profit Generator Method?
The Land Profit Generator is the leading land flipping business incubator in the industry.
Jack and Michelle Bosch are the co-creators of The Land Profit Generator Method (LPG). The Land Profit Generator has produced a record number of successful land flipping business owners. In addition, the LPG team offers the most comprehensive Land Investing Coaching Program in existence.
Established in 2008, the LPG method has brought hundreds of prospective land flippers to success.
The methods and systems taught in the program ensured that Jack and Michelle’s land flipping business survived the 2008 market crash, and enabled land flippers to thrive during the recent Covid-19 pandemic.
If you would like to find out more about the Land Profit Generator method, register to attend our upcoming training event by clicking the button below.
Is Land Flipping A Full Time Job?
As with most things in life, what you put into your land flipping business is directionally proportional to what you will get out.
While many people start a land flipping business as a side hustle, and make only a couple of transactions per month when they have time, the most fiscally successful people are those who choose to become their own bosses and commit to a full-time schedule.
To become more efficient with their time, these entrepreneurs optimize and automate their systems to save time as the business scales.
Schedule Your
FREE 30-Minute
Call With One of
Our Land Experts
to Find Out
If Land Flipping is
Right For you
Download your FREE copy of the Forever Cash e-book, by Jack Bosch
Can Land Flipping Produce Passive Income?
There are many ways to construct land flipping deals. The simplest deals involve purchasing a land lot for between 5 – 25% of market value from a non-wanter and selling it at a profit to the right buyer.
However, you can use seller financing to create a passive cash flow with land flipping.
In essence, seller financing allows one to act as a bank by carrying the note of the loan the buyer needs to purchase the property. This option allows the seller to not only collect the principal of the loan, but also all the percentage points of interest associated with carrying the note of record.
Should the seller and the buyer agree to terms, seller financing can grant a larger scope of financial freedom to both parties. Essentially, the buyer can afford a larger debt by paying the seller directly, and the seller assumes all the benefits of added percentage points. Additionally, if the buyer defaults on the loan, the seller can reassume ownership over the property.
3 types of land for
successful land flipping
When you start your land flipping business, one of the first steps to take is deciding on what type of land you are going to target. This is a critical decision that will determine how you will select counties and, once you have a land lot under contract, how you will market the property to prospective buyers.
There are three types of land that we typically target in our land flipping business:
1. Land in Paths of Growth
Cities grow in fairly predictable ways over time. Large city centers often have their origins around natural resources, geographical features such as ports and harbors, or along established trade routes.
Over the years, population numbers increase and people from outlying areas start to migrate to the city seeking opportunities. Living space starts to become a scarce commodity, resulting in high competition and falling standards of living.
Naturally, people looking to escape competition for limited space in the city center start to spread into the undeveloped surrounding areas. Suburbs are quickly established, offering more space and a better quality of life than inner-city living. As those suburbs fill up, new areas are developed to meet the growing demand for housing. As long as the economy continues to thrive in the city center, demand for residential and commercial properties will continue to grow.
This pattern of development presents a great opportunity for land investors. If you can reliably predict where demand for land will emerge, you can identify land that has a low market value, but which has the potential to escalate in value as population growth drives up the demand for housing around an area of growth.
When you sell your land, you want to find a buyer that will realize the potential of the land to accrue in value due to its proximity to a rapidly developing area. This is how you are able to make profit margins in excess of 100% on land lots in the path of growth.
Identifying corridors of growth and buying the right kind of land in those areas is a skill. You will need to gain an understanding of population dynamics, the macro and microeconomic factors that affect market trends, and choose land lots accordingly. It is these skills, among others, we teach our students when they enroll in the Land Profit Coaching Program.
2. InFill lots
Infill lots can best be described as ‘gaps’ in an already developed area. Think of a city or suburban block that has a home or commercial building on every lot, except for one.
Infill lots are highly desirable for land flippers because it offers you an opportunity to purchase a vacant lot that may already be zoned for development, making it highly desirable for builders.
When purchasing an infill lot, it’s very important to do your research and find out exactly how the property can be developed. The location, surrounding buildings, and social-economic status of the surrounding area will all have a direct bearing on the market value of the property.
3. Recreational land
Recreational land can best be described as rural land that has not been zoned for development but has the potential to offer the buyer a unique opportunity to pursue recreational interests, such as camping, fishing, or hiking.
In recent years, we have seen a dramatic surge in demand for recreational land, driven by the Covid-19 pandemic. The implementation of travel restrictions has motivated people to look for domestic recreational opportunities, preferably away from densely populated areas. The RV industry is surging as people look to have a unique outdoor experience. Owning a rural property within driving distance of the city offers people the opportunity to explore the outdoors in a deeply personal way, without having to worry about sharing amenities with other campers.
Flipping recreational land is a great place to get started in land flipping because the parcels tend to be very affordable, and tend to sell quickly if marketed appropriately.
How To Find Land Below Its Market Value
The Land Profit Generator Method focuses on finding unmotivated sellers who legally own a property that they do not want. Instead of adding value, the unwanted land is likely sitting unused, racking up property taxes, hurting unmotivated seller’s bottom line.
Finding these neglected properties is vital to the flipping system, but there is one catch. By the time a neglected property hits the open market or government auction, it is already too expensive to be worth flipping. Why? Added costs like brokerage fees and auction percentages can potentially inflate prices out of the desired range and lower the margin of profit.
At Land Profit Generator, we teach our students to find properties by accessing the details of land owners in a specific county and sending direct mail campaigns. You can access a list of property owners through a list broker, directly from the county or from a title company .
This distinction in research is of paramount importance to the success of our method.
With the right techniques, a buyer can acquire a tax free property while offering the seller some cash for an asset they deemed worthless.
How To Find The Most Profitable Properties To Flip As A Land Investor
What is the difference between the assessed value of a property and the market value? This is a very basic distinction but that distinction can heavily impact any deal. How do you find the most profitable lands to flip? The Land Profit Generator Method relies on intentional research, but it is just as important to understand WHICH records should garner the most attention.
With the correct records in hand, the proper research can be applied to the deals which appear most enticing. While in the discovery phase, it is important to be intentional with direct mail campaigns and how to optimize them.
Here are a few critical questions to ask yourself:
- To whom are the offers being sent?
- Do they fit the profile from the research?
- Most importantly where does the land fit in “The Path Of Growth”?
Do you have to live in USA to flip land?
The simple answer is NO – you do not need to live in the United States to flip land in the USA.
The Land Profit Generator Method is designed to be a 100% virtual business, and therefore you can complete the entire deal making process without ever having to see a property and without having to meet in person with a buyer or seller.
We have a number of students who have never actually set foot in the USA, but are making 6 and 7-figures in their land lipping businesses. The secret to flipping land from abroad is having the right systems and team in place to automate your business.
The land flipping business model is designed in such a way that you can flip land lots from anywhere in the world.
Will We Ever Run Out of Land?
Absolutely not! Unlike the housing market which is limited by the supply of homes for sale, there is effectively no limit to the amount of land for sale.
The Land Profit Generator Method is so successful because we use our resources to research and target unmotivated sellers. This strategy allows our students to purchase properties at the lowest possible value, while helping people offload their unwanted land.
The secret to this model is to understand that you can flip American land from anywhere in the world. However, the Land Profit Generator Method ONLY works for land inside the USA. The reason for this is that the USA is one of the only countries in the world where details about who owns property is a matter of public record. If you cannot find out who owns land, it is impossible to reach out to them with a letter of interest.
The Land Profit Coaching program offers international land flippers the opportunity to work with Master Coaches who have built their land flipping businesses from outside of the USA. If you do not live in the USA or want to operate your land flipping business while you travel, you have the opportunity to learn exactly how to manage your virtual land flipping business from somebody who has already done it.
2022 land investing market projection
Over the past two years, we have seen a dramatic and irreversible change in the nature of work.
The rapid unfolding of the Third Industrial Revolution has provided the tools needed to enable people to remain highly productive without being tied to a specific location. In 2020, the covid-19 pandemic restrictions resulted in corporations sending their workforces home, forcing a rapid adoption of remote working practices across the world.
Now that the worst of the pandemic is behind us, companies have started recalling their staff to the office. However, the work-from-home model adopted as an emergency measure has become a norm. People have realized that the benefits of working from home far outweigh the pain-points of an office-bound job. Over the past six months, we have seen a new trend emerging, dubbed “The Great Resignation’ by the press. Suddenly, people are more willing to leave their jobs than return to the office.
The shift away from location-based work has opened a plethora of opportunities in the housing market – which has a direct effect on land acquisitions. People’s careers are no longer tied to location. We are, therefore, seeing an increase in semigration. People are choosing to move away from cities, where the cost of living is high and quality of life low, to more rural areas where they can swap their 700 square foot apartment in the city for a three bedroom home in a small town for the same cost, while retaining their salaries.
Now, more than ever, people are looking for land to build their forever-homes on the outskirts of towns and cities because it allows them to work from the comfort of their home-office. This unprecedented demand for land is one of the many reasons why The Land Profit Generator market projection looks so enticing for 2022.
Not only does 2022 look strong, but the future appears secure due to market factors such as inflation, interest rates, and the fast-evolving nature of work in the USA will continue to drive demand for land in the years to come.
Now is the time to begin to identify critical areas to focus energy as a land investor in 2022. The Land Profit Generator Method can maximize profits and scale business to achieve freedom of cash, time, relationships, and purpose in 2022.
With proper research in hand, favorable projections for the near future, and the correct mindset, right now is the ideal time to start making offers on land that is ripe for flipping.
hOW TO MAKE AN OFFER FOR LAND
Restrictions in the United States prevent buyers from cold calling or emailing hundreds of people asking to buy their land. Under the Telephone Consumer Protection Act of 1991,
we can call anyones landline, but not their cell phone without prior consent, and the Controlling the Assault of Non-Solicited Pornography and Marketing (“CAN-SPAM”) Act makes cold emails rather tricky.
To stay well within our legal obligations, The Land Profit Generator Method prescribes that the buyer primarily issues offers to potential sellers through direct mail. This part of the process uses a quantity over quality approach, to an extent. To be most effective, the goal is to only propose offers on properties with the real intent to purchase.
Should the seller show interest in an offer, then it is time to dig down and do the finer research which can truly impact a potential deal or even alter the offer price.
After doing the research, offering a deal, negotiating the right price, and then signing on the dotted line, then it is time to find the right buyer with the proper application for the recently acquired land.
Where To Sell Land?
If there is no buyer before going to the open market, then marketing the raw land must become a primary concern. Otherwise, how will potential buyers know how to purchase the land?
Most land flippers post their properties on a real estate listing site, especially those which specialize in raw land sales.
In addition to professional real estate platforms, however, there are other avenues like local ads, Facebook Marketplace, or even Craigslist. These sites are viable options to market real estate if one wants to keep costs to a minimum. There is a risk to using informal sites like these because they may not be populated with many serious buyers who have the liquid assets to part with $50,000 on a property.
Finding the right buyers and sellers is a detail-oriented process. With the appropriate amount of research and drive, one can generate as much income as they see fit for their lifestyle.
How To Generate $250K
In Profits In 12 Months
What is the amount of money you want to make? Perhaps, for some, $10k would be enough. Others, maybe it’s $50k. Most Land Profit Generator students want much more than that, and it can happen.
To make this kind of cash, however, requires a very serious plan be implemented.
With that plan in mind, our Land Profit Coaching program can help you make as much as $250k in one year.
Planning your schedule not only allows you to be efficient with your time, but it also helps you fulfill the goal of financial freedom.
Understanding your intention is an important place to start a land flipping business. As such, there are four important questions to which you must know the answer:
1. If you were to start at least on a part-time basis, how much money would you need to earn per month to make this business worth your time?
2. How many hours per week could you realistically give the business to develop that kind of income?
3. How many months would you be willing to give the business to reach that income level?
4. If The Land Profit Generator Method could show you how to achieve your goals from the previous questions, what else would you need to know to get started?
rEADY tO sTART A
LAND FLIPING BUSINESS?
If you need more help learning the ins and outs of land flipping, you can start on the right path of becoming a land flipping professional by utilizing any one of the many free tools we offer:
SIGN UP FOR OUR NEXT EVENT >
Join us for one of many virtual events we hold throughout the year. We discuss new strategies, the latest trends, and help coach you to your best success.
Subscribe To Our Free Podcasts >
Keep track of the latest trends by following Land Profit Generators’ free podcasts.
Read our latest Articles >
Land flipping insights on our blogs.
About Us
Jack and Michelle Bosch are the co-creators of The Land Profit Generator Method. The Land Profit Generator has produced a record number of successful land flipping business owners. In addition, the LPG team offers the most comprehensive Land Investing Coaching Program in existence.