The top 5 biggest land flipping mistakes newbie real estate investors make and how they can avoid them.
Land investing involves a lot of trial and error. When you first start investing in the land space, you’re going to make mistakes.
However, if you know what the most common mistakes are, you can avoid many of them. Learn from those ahead of you on the journey, and you will achieve your dreams sooner than you imagined possible.
Mistake #1: Not Being Focused and Committed to land investing
So many people have created six and seven-figure breakthroughs from land flipping. But you have to be focused and committed if you want to see this kind of success. You have to be willing to invest and go all in. You can’t be jumping from one thing to the next and you have to remain steadfast when obstacles come your way because they will come.
For your land investing business to succeed you will need to:
- Commit to land flipping.
- Make it a priority.
- Learn all you can from experts.
- Focus on your goals.
- Follow through.
- Don’t give up.
Mistake #2: Not Hiring Help
Inexperienced land flippers want to save money, so they’ll often try to do everything by themselves. At a first glance, this makes sense because you might not have a lot of money to work with, in the beginning. Maybe since this is your side job, you don’t feel the need to employ somebody because it shouldn’t take any significant time out of your day.
Unlike other fields, in the land investing space, time truly is money. You need to hire people to help you shrink and collapse time. Growing and scaling your land flipping business is impossible to do on your own. The right team will help you meet your goals and achieve your dreams much more quickly.
In the startup phase, hiring help will require financial sacrifice. However, the return on investment will be worth it in the end. Additionally, you need to think of this profession as something that is worth your time and energy. If you’re not going to be willing to dedicate resources where they are needed, you will not succeed.
Mistake #3: Marketing to the Wrong Areas
Research the area where you want to buy land before you launch your direct mail campaign. Don’t send out thousands of letters without knowing where you’re sending them. Many areas in the country are too high-priced or have no growth happening.
There might be a good reason why there is so much undeveloped land available. You won’t be able to sell properties in these areas quickly or easily, and you’ll lose time and money. Do your due diligence upfront. Find a promising area with inexpensive land before you start looking for motivated sellers.
Mistake #4: Poor Marketing Strategies
Poor planning is another big mistake newbie land flippers make.
Sometimes people get a property under contract, but they don’t have a marketing plan in place. Experienced land flippers excel at parallel marketing, meaning that you are already planning ahead to find a buyer before you even have a property to sell. Then, when you do have the property in hand, finding a buyer will be quick and easy.
Along these same lines, people often get lazy with their listings. You can’t just put something out there and expect it to grab attention. You need to be intentional about your listings, and you need to appeal directly to the buyers you want to reach. Your listings should stand out from the competition.
What about your listing would compel someone to want to buy a property? Buyers are important because many of them will buy from you again and again. Put good marketing strategies in place from the very beginning, and you will be on your way to success.
Mistake #5: Not Making Enough Offers
You might select good properties in the right areas, but if you don’t make enough offers, you won’t get deals. At Land Profit Generator, we’re not in the business of sending out letters and marketing to people. We’re in the business of making offers. The more offers you make, the more successful you’ll be.
Making offers is one of the hardest parts of land flipping for some people because you need to learn negotiation skills. Negotiation can feel like a scary thing, but it doesn’t have to be. A little bit of confidence goes a long way and it communicates to a potential buyer that you know what you’re doing, and they should feel comfortable doing business with you.
Successful Land Investing: It’s All About Your Mindset
Any time you start something new, there will be a learning curve. You will suck at the beginning and continually improve. A lot of mistakes in the land flipping business really can be avoided since most of the obstacles you face are coming from inside of you. If you’re letting your fear get the better of you, you’re that much more likely to make operator errors.
Instead, choose to be confident. Focus and commit yourself to doing your best. And learn from experts like us, so you don’t have to make the real estate mistakes we made when we were first getting started two decades ago.
If you would like to fast-track your success as a land investor, join us for our upcoming Land Profit Generator LIVE Event! Land Profit Generator’s co-founder and CEO, Jack Bosch, will be taking students through the Land Profit Generator real Estate Investing Method to ensure that you don’t make avoidable mistakes and maximize your land investing profits, fast!