Wholesale Land Flipping – The Secret to Buying Cheap and Selling Fast Exposed

Flipping houses may be all the rage on reality TV shows, but savvy real estate investors know that flipping land can be even more lucrative. In fact, wholesale land flipping is a lesser known niche that allows you to buy vacant land cheaply and sell it for double or even triple your investment. You don’t need money, credit or experience to get started. In this guide, we’ll expose all the secrets the pros use to find discounted land, get it under contract for pennies on the dollar, and quickly wholesaling it to eager buyers. If you want to get into the real estate game without renovating properties, read on to learn how wholesale land flipping can help you profit big.

What Exactly is Wholesale Land Flipping?

Wholesale land flipping is a real estate investment strategy that involves purchasing vacant land at deeply discounted prices and then reselling that property to buyers for a higher price. The “wholesaling” aspect comes from the fact that you don’t actually intend to be the end user or developer of the land. Instead, your goal is to act as the middleman between motivated sellers and buyers who are looking for good land deals.

With wholesale land flipping, you can buy plots of vacant land far below market value by finding distressed or motivated sellers. These are property owners who need to sell their land fast and may settle for lower offers. Once you secure a great deal on the property, you then find a cash buyer interested in purchasing land for development or investment purposes and offer to assign your purchase contract to them for a fee.

The buyer will pay the final negotiated purchase price and you simply pocket the difference between what you initially had the land under contract for and the higher amount they pay. The key is leveraging your ability to find good discounted land deals that buyers are willing to pay more for. This allows you to get a high return on your initial investment without ever having to actually close on or own the property.

Many real estate investors like wholesale land flipping because it requires little upfront capital and less hands-on work than fixing and flipping houses. It also allows you to turn around deals very quickly, often in as little as 30-60 days. And since land is always appreciating, it can be fairly easy to find buyers willing to pay a premium for vacant property that is priced attractively. If you have the right system for identifying motivated sellers and marketing deals effectively, wholesale land flipping can produce nice profits on each transaction.

How Can You Find Cheap Land to Buy Wholesale?

When it comes to wholesale land flipping, your profits are made when you buy the property. So finding cheap land deals is the most critical first step. There are several proven strategies successful investors use to source discounted land for wholesale land flipping:

• Work with motivated sellers. Contact landowners who have inherited property they don’t want, fallen behind on taxes, filed bankruptcy, or simply need to sell quickly. These distressed sellers are often willing to unload land below market value just to get rid of it.
• Search public records and foreclosure listings. Land that is in pre-foreclosure or has tax liens can sometimes be bought for a fraction of its worth. Searching county records can uncover these hidden gem deals.
• Drive rural neighborhoods looking for vacant lots. Scouting areas on the outskirts of growing cities can reveal lots zoned for development but still vacant. Knocking on doors of landowners in these areas can yield some wholesale deals.
• Network with real estate agents to find expired land listings. Contacting the agents of land parcels that have been on the market a long time may lead you to a frustrated seller willing to wholesale the property.
• Advertise “we buy land” signs and online ads. Broadcasting that you buy land as-is for cash motivates sellers to contact you with deals. Responding quickly boosts your chances of scoring a low-cost wholesale parcel.

With some consistent effort using these sourcing strategies, you can build a steady pipeline of discounted land deals perfect for wholesale land flipping. The lower you acquire properties for, the greater your potential payout when you assign the contract to a retail buyer. Lean on relationships and creative deal making to get land cheap.

What Types of Land Are Best for Wholesaling?

When executing a wholesale land flipping strategy, not all land is created equal. Certain types of vacant land parcels are going to be much easier to resell to end buyers for a profit. Here are some of the most desirable land types to target for wholesale land flipping:

• Land near growing cities – Plots on the outskirts of urban areas expanding outwards have high demand from developers planning new subdivisions and commercial projects. Land wholesale deals in these areas can sell very quickly.
• Waterfront property – Riverfront, lakefront, and ocean view parcels are highly coveted, even if undeveloped. The right buyer may pay a premium for waterfront land that you have under contract.
• Land zoned for residential or commercial use – Parcels already zoned for development require less work for builders and investors, making them more valuable. Agricultural land must go through a lengthy rezoning process first.
• Large acreage – Big plots of 10 acres or more have more potential uses and are thus more attractive to wholesale buyers who want room for different types of projects.
• Land with utility access – Properties that already have water, electric, gas, and sewer lines available are much more marketable than raw undeveloped land without utilities.

Operating in the right areas and targeting land parcels with these characteristics will greatly expand your buyer pool and ability to sell for top dollar. The key is securing discounted deals on land types that are inherently valuable to developers and investors. This maximizes profit potential with wholesale land flipping.

How Do You Determine a Good Wholesale Price for Land?

Pricing land correctly is critical to the success of any wholesale land flipping deal. Set the price too high and you likely won’t find any cash buyers willing to meet your ask. Price it too low and you leave profits on the table. Follow these tips to determine an optimal wholesale price:

• Check recent comps in the area. Look at what similar vacant land parcels have sold for recently. This gives you a baseline for the retail market value to start from.
• Factor in your acquisition costs. Tally up any fees, closing costs, surveys, or back taxes you paid when purchasing the land wholesale. This represents your minimum needed to break even.
• Determine the ARV. Estimate what the land would be worth if fully developed based on the going rate for finished lots in that location. This is the upper ceiling for your wholesale price.
• Account for holding costs. If you expect to hold the property for more than a few months, estimate taxes, insurance, and other carrying costs you may incur before selling.
• Set your price around 60-70% of ARV. Wholesale deals need to be discounted enough to motivate cash buyers. But don’t leave too much meat on the bone.
• Be flexible. You can always lower your price if needed, but start on the higher end. Wholesale land flipping is a numbers game, so give yourself room to negotiate. For more education check Land Flipping 101.

Following this systematic process will help you land on an optimal wholesale price that maximizes your profits while still appealing to investors.

Where Can You Find Cash Buyers Interested in Wholesale Land?

Finding an end buyer is the key to completing a profitable wholesale land flipping deal. So where should you look to locate cash buyers ready to purchase investment property? Here are some proven approaches:

• Network at local real estate investing meetings – Connecting with other investors face-to-face builds relationships and surfaces buyers looking for deals.
• Market to builders and developers – Research construction companies online and cold call or email them about your discounted land opportunities.
• Advertise on land listing sites – List your property on sites like LandsOfAmerica.com frequented by land buyers browsing deals.
• Partner with real estate agents who represent buyers – Offer referral fees to agents who can match you with clients looking for land.
• Send direct mail campaigns – Target mailers to adjacent landowners who may want to expand their holdings.
• Post on Craigslist and Facebook – List the property in local real estate and investing groups to cast a wide net for buyers.
• Leverage your existing contacts – Email friends, family members, and acquaintances who may know someone interested in land investment.
• Follow up on signs of interest – If you get inquiries about a property, nurture those leads into satisfied cash buyers.

With persistence and savvy marketing, you can build up a buyer list ready to purchase the discounted land contracts you secure. Wholesale land flipping is a numbers game so the more potential buyers you reach, the faster you flip.

What Are Some Tips for Closing Your First Wholesale Land Deal?

If you’re new to wholesale land flipping, closing that first profitable deal can seem daunting. However, following these tips will help ensure your maiden voyage into land wholesaling goes smoothly:

• Seek out motivated sellers willing to price aggressively. Look for vacant land owners under financial distress or urgency who will accept deep discounts to sell quickly.
• Have your buyer lined up before making an offer. Submit contingent offers subject to finding an end buyer to assign the contract to.
• Use option contracts giving you the right, but not obligation, to purchase the property. This limits risk if you can’t find a buyer.
• Inspect the land thoroughly yourself to avoid surprises. Look for ease of access, boundary markers, drainage issues, etc.
• Hire a title company or real estate attorney to handle the closing. Having experienced professionals facilitates the transaction.
• Require an earnest money deposit from your buyer to show they are committed. This should be enough to cover your costs if they back out.
• Manage expectations on both sides about timelines and processes. Wholesaling has more moving parts so delays are common.
• Have all parties sign assignment paperwork to legally transfer the purchase contract.
• Close simultaneously if possible so you never have to take ownership of the land.

The first deal may take some extra work, but once you get the basics of wholesale land flipping down, you can scale and grow your new revenue stream.

Wholesale Land Flipping Conclusion 

Wholesale land flipping offers real estate investors a profitable and fast-paced business model to pursue. By leveraging your ability to source discounted vacant land and then quickly assigning contracts to end buyers, you can profit from the spread without ever taking ownership. 

The key is finding motivated sellers willing to sell below market value, accurately evaluating parcel value, marketing deals effectively to cash buyers, and facilitating smooth closings. Though it requires some hustle, wholesale land flipping has much lower barriers to entry than other types of real estate investing. 

With a solid game plan following the tips outlined here, you can begin notching your first wholesale land flipping successes. This high-velocity strategy allows you to turn small investments into substantial returns. Land will always be a stable commodity in demand, creating reliable profit potential for those who master the art of wholesaling.