I have received some comments from folks reading this blog that they want more information about investing in raw land. So without further ado, here is vacant land investing 101.
Why vacant land? I love flipping pieces of vacant land because there are not tenants, termites, or toilets to worry about. The only holding cost is property taxes (usually very low on land) and it’s easy to find land for low prices.
How do I find motivated buyers? Call up the county office and ask the IT department to prepare you a list of all property owners who are delinquent, and ask that they only include vacant land. Start by focusing on out of stat owners, and send them a letter offering to buy their land. You will likely be flooded with phone calls and responses.
How do I make an offer? My Land Profit Generator program comes with software for calculating and offer, but basically you will want to offer the owner somewhere between 5% to 20% of the land’s market value. That way you can sell it at a discount and still make a profit.
Why would anyone sell their land so low to me? What’s wrong with it? In most cases, there is nothing wrong with the land. The current owner may have bought the land thinking of a future use for it, but then life got in the way. Or maybe they inherited it from a deceased relative and now the annual taxes are a burden. In most cases, the seller just wants to get rid of the land which is no longer of any use to them.
Flipping vacant land is a GREAT way to get seed money for bigger and better investments. In fact, that’s how I got started!
For a complete course on flipping raw land, I recommend you check out my Land Profit Generator program.