If you search for land flipping online, you might find some articles claiming that land flipping is illegal. In reality, buying and selling raw land for profit is both legal and a very lucrative business opportunity for people looking to make money in real estate without the hassle of houses.
The world is too populated with pyramid schemes and scammers for most people to believe that any venture is more than just a ploy. No one wants to be the wacky uncle whose get-rich-quick schemes seem to backfire in his face, just as every early 2000’s sitcom taught us. So, who should you trust in land flipping? The business model targets and buys plots of land for pennies on the dollar and flips them for massive profit. It does seem too good to be true. But is it really?
Why Isn’t Everyone Flipping Land?
There are plenty of people, and HGTV shows flipping houses for profit, and it’s a lot of work. It may seem glamorous and profitable, but the truth is that flipping homes is a risky business. Most middle-class families couldn’t afford to invest that amount of capital for possibly poor margins.
Not to mention the headache and additional costs of hiring contractors, plumbers, and electricians, while abiding by various codes. So, why don’t all these people flipping homes just flip the land instead? The reason, for the most part, comes down to a lack of knowledge. People don’t know that they could be flipping land for higher margins and lower overhead costs.
You will find that many land flippers started out flipping houses and made the switch for this very reason.
Can Anyone Flip Land?
It does not take any special license or training to flip land for profit. All it takes is the drive to search for good deals, do your due diligence, and follow through with the seller. Then, to make a profit after the initial agreement will require some aggressive marketing strategies to find a buyer willing to pay at your marked-up rate.
There are some intricacies to land flipping that only an expert can teach you, so there are online programs and coaching options if you are looking for a thorough explanation.
Is Land Flipping Illegal?
It is an entirely legal process for anyone to buy and sell plots of land with the right documentation. As long as you complete your payments on time and follow specific laws per state, you should not have any problems flipping land.
Although, when you are closing a deal, you will want to take it to an attorney or title company that can facilitate the details. It costs a little more but it is much faster and easier than learning how to compose a title agreement on your own. And in some states, it is illegal to write a title agreement on your own, meaning you will need an attorney.
We hope this post gives you more insight into the validity of land flipping. With enough practice and some intelligent decision-making, anyone can make money off of investments in raw land. Just be sure to do your research before making a purchase and follow all of your state’s rules and regulations.
If you would like to learn how to start or scale up your land flipping business, then get in touch. Our experts are ready to answer all of your questions.