Flipping vacant land is awesome, but you don’t want to find yourself holding tons of parcels that nobody wants. So before you purchase a piece of property, you need to make sure that you will be able to sell it. So in this special blog post, I would like to take a few minutes to share some of the tips and tricks I have learned over my more than 3,000 real estate deals. In particular, I want to show you how to find an area that will help you get a quick sale and maximum profit.
For vacant land, don’t focus on metropolitan areas, because in most cases they cost way too much. Instead, focus on buying outside of large cities. Now, this is not an appreciation game (buying and holding until land values go up) you are simply trying to find a parcel that can be sold to different markets. For example, if you buy outside a large city, interested buyers might include commuters, folks wanting to get away from the hustle and bustle but not the conveniences) of the city, and speculative investors who are buying with the long haul in mind.
To find out which areas fall into this category, go to www.freemaptools.com and use the “Draw Radius” tool to draw a 50 mile circle around a large metropolitan area. Then focus your efforts on the counties and cities that lay just outside that radius. The prices will be lower.
Then, you will want to verify which of those areas has demand. In other words, where are people buying? Go to www.ebay.com and look at all the listings for vacant land in the state you are investing in. Which listings are getting the most bids? Are any of those parcels near the areas you have been looking at? Now, don’t focus on the price that the parcels are going for on eBay (they normally go for a fraction of the price or a down payment only) – just look at which ones are getting people excited.
Also, use a website like www.zillow.com to look at recently sold land in the area to find out what people are paying and how much land is being exchanged from hand to hand.
To find a great area for flipping land, you need to focus on finding:
1) Decently priced parcels where the value is built in, and
2) A place where there is demand for land.
Use the above tips and tricks to find a great area for flipping land, and then let me know how it went for you!