How to Flip Land 7 Powerful Tips

By LandyDandy Team

Dreaming of scoring your next real estate jackpot by flipping vacant land? Undeveloped plots can mean big profits if you know how to find, value, and sell them for multiples of what you paid. Follow these 7 proven tips from expert land investors to start profiting from flipping land.

How to Flip Land?

Finding Cheap Land to Buy

Look for distressed properties – foreclosures, short sales, auction properties. These can sometimes be purchased below market value.
Search rural areas and less desirable locations. Land in developing areas outside of cities can be cheaper. -Drive or walk around potential areas and look for vacant lots with for sale signs. Contact sellers directly.
Use land listing services like Lands of America to find cheap vacant land for sale.

Evaluating and Purchasing The Land

Research zoning, permitted use, and development potential for the land. Make sure you can build on it or develop it.
Inspect the land in person. Check for access, utility availability, drainage, and other issues.
Get a property survey to verify size and boundaries. Check for easements or other encumbrances.
Hire an attorney to review title and sale documents. Make sure you receive clear title.

Adding Value to The Land

Improve road access or visibility if possible. This can significantly increase value.
Clear brush, debris, or trees to open up usable space.
Install utility hookups or septic if not already available.
Consider zoning changes or permitting to allow more valuable use.

Selling The Land

List the land on MLS or sites like Zillow. Market to both developers and individual buyers.
Promote land on social media and networking platforms to generate interest.
Consider auction sites like Hubzu if you get no offers after several months.
List with agents who specialize in land sales. Their network of buyers could pay off.
Offer owner financing to prospective buyers to get properties sold faster.

With the right property, improvements, and marketing, you can buy cheap land and sell it for big profits if you follow these flipping tips. For More Tips check out our Land Flipping 101 Guide

Should You Start Flipping Land?

Flipping land – or buying discounted property and reselling it for profit – can be an extremely lucrative real estate strategy if done correctly. Here are some key considerations when deciding if starting to flip land is right for you:

Capital Requirements – Just like flipping houses, flipping land requires sufficient capital to purchase and carry the property until resold. Budget for the down payment, closings costs, taxes, and any improvements.
Finding Discounted Land – Locating cheap land with upside potential takes effort and market knowledge. Monitor foreclosures and auctions, distressed sellers, or rural/undeveloped areas.
Holding Period – Land may take longer to sell than houses. Are you prepared to carry the costs of the land for 6 months, a year, or longer? The longer you wait, the greater the potential appreciation.
Development Expertise – For vacant land, is any clearing, infrastructure installation, or rezoning required before buyers will pay top dollar? If so, consider hiring professionals.
Marketing – Land can be harder to locate online. Photograph the property and advertise on niche land listing sites. For higher value lots, hire an agent to market for you.
Legal Considerations – Confirm zoning restrictions, seek legal counsel to review sale documents, and perform due diligence before acquiring land.

If you have sufficient capital, patience, and real estate knowledge – or partner with someone who does – flipping land for profit can become a very lucrative side business or career. Use tips on how to flip land to maximize success.

How Do You Find Land to Flip?

Look for Vacant Lots – Drive or walk around neighborhoods and look for empty lots with for sale signs. Contact sellers directly about unlisted vacant land.
Explore Rural Areas – Land in rural counties or areas outside major development is generally much cheaper and has more upside potential.
Monitor Public Records – Check public foreclosure notices, pre-foreclosure listings, and tax sale records for distressed vacant land opportunities.
Research Auctions – Tax lien auctions and foreclosure auctions by banks will often have discounted land for sale through public bidding.
Network with Agents – Discuss your criteria for cheap land opportunities with local real estate agents. They can keep an eye out for listings.
Search Online Listings – Check sites like Lands of America, LandWatch, and Land Hub for cheap vacant land listings. Filter for undeveloped rural land.
Buy from Motivated Sellers – Finding a distressed or urgent seller who needs to liquidate land quickly can result in huge discounts.
Wholesale Deals from Other Investors – Get land flip opportunities at big discounts by networking with land investors looking to wholesale deals.

Finding cheap vacant land with upside does take research and diligence. Using these sourcing tips can help you locate discounted land perfect for fixing up and flipping for big profits. Focus on areas seeing growth and development for the best chances of maximizing returns when reselling.

What Should You Look For in a Good Flip Property?

Cheap Price – You want to acquire the land at a steep discount to leave room for profit when reselling. Look at comparable land values.
Upside Potential – Land that is usable or can be developed into residential, commercial use typically sells for much higher than raw vacant land.
Increasing Area Value – Land in areas seeing new construction, infrastructure improvements, and population growth have greater upside.
No Major Restrictions – Confirm the zoning allows your intended use and there are no major easements or restrictions limiting development.
Accessible Location – Land near main roads and highways generally commands higher prices and is easier to resell.
Low Improvement Costs – Land that only needs brush clearing or minor infrastructure adds the most value for the least amount of expense.
Verified Ownership – Check public records to ensure there are no undisclosed liens, tax debts, or disputes involving the title.
Elastic Demand – Land suited for multiple buyer types like developers, builders, or end-users will expand the potential market when reselling.

Finding the ideal flip property depends on your risk tolerance, budget, and timeline. Focus on quickly identifying any red flags that could limit profit potential before committing to purchase vacant land.

How Do You Determine a Property’s Value?

Research recent land sales in the area. Look at sales prices for comparable vacant land lots to establish a baseline value. Adjust for differences in size, location, utilities, etc.
Factor in any zoning, usage restrictions, or development costs. Land with utility access or zoned for residential use will be worth more.
Consider nearby amenities like schools, parks, or shopping that could make the land more desirable. Proximity to main roads is also a plus.
Look at area growth. Land in rapidly developing areas or neighborhoods will command higher pricing. New construction and influx of residents increases demand.
Evaluate the condition and any improvements needed. Assess any costs to clear trees, level the land, or install a driveway or utilities.
Have the land appraised by a licensed professional appraiser if you need to validate your estimate, especially for high value properties. Their expert opinion carries weight.
Start low in your negotiations and research, but don’t go so low sellers will refuse or be offended by your offer.
Consider getting a comparative market analysis from a local real estate agent as well. They may provide additional comps and advice.

Doing thorough research and due diligence will give you an accurate picture of a land parcel’s current market value and resale potential.

What Costs are Involved in Flipping Land?

Purchase Price – The amount paid to acquire the land. Seek discounted pricing to maximize profit.
Closing Costs – Fees paid when buying and selling like title fees, legal fees, transfer taxes.
Inspections – Surveys, soil tests, environmental assessments if needed.
Property Taxes – Annual property taxes while you own the land.
Site Improvements – Expenses to clear land, grade, pave driveways, install utilities.
Holding Costs – Insurance, maintenance, mortgage payments if not sold quickly.
Marketing Fees – Real estate agent commissions when the property sells.
Capital Gains Taxes – Tax rate paid on your profit when you sell the land.
Legal Fees – Lawyers to review contracts and handle any title disputes.
Software Costs – Subscriptions for real estate listing/marketing software.
Direct Mail – Printing and mailing costs if marketing land to surrounding owners.
Unexpected Repairs – Buffer for any surprise repairs during holding period.
Transaction Fees – Bank wire transfer fees, overnight shipping costs.
Office Supplies – Signage, fencing, small tools/equipment to maintain property.

Carefully projecting all potential costs from start to finish will allow you to flip land profitably. Budgeting for contingencies helps avoid surprises.

How Can You Add Value to Land Before Selling?

Here are some ways to add value to land before selling:

Improve road access – If the property lacks good road access, consider adding a driveway or grading a road. This makes the land more usable.
Clear trees/brush – Clearing some trees or overgrown brush opens up more usable space and shows the land boundaries.
Install utilities – Having electric, water, or septic hookups already in place increases value significantly.
Survey the land – Getting an official survey done resolves any boundary or easement questions buyers may have.
Split into parcels – Dividing into smaller parcels can open up more potential buyers and maximize sale prices.
Change zoning – Seek rezoning for more valuable use like residential or commercial if appropriate.
Permit development – Begin permitting process for subdivision or other development to entice developers.
Improve drainage – Fix any flooding issues by grading or installing drainage tiles/swales.
Soil testing – Having verified fertile soil will boost agricultural land value.
Advertise potential – Showcase ideas and vision for the land through marketing materials.

Any improvements that make the land more usable or closer to being development-ready will typically yield a higher sale price. Even minor fixes can boost value significantly.

What Are the Best Ways to Sell Your Flipped Land?

Here are some of the best ways to sell your flipped land property:

List on MLS – Listing on the Multiple Listing Service (MLS) exposes your listing to all local real estate agents and home search sites. Provides the most exposure.
List on Zillow – For Sale By Owner (FSBO) listings on Zillow also get wide visibility to buyers browsing online.
Post on Land.com – Specialized land listing sites like Land.com target buyers specifically searching for land parcels.
List on Auction Sites – A timed online land auction creates urgency and competition between interested buyers.
Network with Local Investors – Other investors may have a portfolio of buyers interested in land deals.
Market to Neighboring Owners – Send direct mail campaigns if adjacent land owners may be interested in your parcel.
Yard Signage – Installing highly visible For Sale signs along adjacent roads spreads awareness locally.
Social Media Promotion – Leverage Facebook groups/pages for real estate investors to find potential buyers.
Hire an Agent – Land specialists can market to their network of cash buyers and developers.

Using a combination of online listings, local networking, and agent resources gives you the widest reach when selling your flipped land fast.

What Professionals Do You Need on Your Team?

Here are some key professionals worth having on your team when flipping land:

Real Estate Attorney – Reviews purchase and sale contracts, handles title issues, lien disputes.
Title Company – Performs title searches, provides title insurance to protect your purchase.
Appraiser – Assesses land value, development/zoning potential to inform buying and selling.
Civil Engineer – Surveys property boundaries and topography, creates subdivision plans.
General Contractor – Gets quotes and oversees any site clearing, grading, utility installation.
Environmental Consultant – Conducts assessments, soil tests for known or potential issues.
Realtor/Broker – Lists property on MLS, markets to their network of cash buyers and developers.
Accountant – Tracks costs basis, capital improvements, and handles tax filing for your profits.
Lender – For financing land acquisition or carrying costs during longer flips.

Surrounding yourself with knowledgeable specialists covers all your key bases and makes the flipping process much smoother. Tap into their expertise when evaluating deals.

How Much Profit Can You Make Flipping Land?

The profit potential when flipping land can vary greatly depending on the deal, but some general guidelines on possible profits:

Simple vacant lot flips – For quicker flips of vacant residential or commercial lots, profits are often 40-70% of the purchase price.
Undeveloped land – Buying larger undeveloped acreage and splitting into parcels or entitling land for development before reselling can bring profits in the 50-200% range.
Distressed sales – Purchasing land at auction or from distressed sellers (foreclosures, short sales) and selling at market rates can mean profits of 100% or more in some cases.
Appreciation over time – Holding land longer term for several years allows for greater appreciation. Profits of 200-500% are possible depending on the market and area growth.
Improvements – Making significant improvements like running utilities, permitting development, clearing trees can increase profits substantially.
Wholesaling – Assigning the contract to end buyer for a quick profit without owning the property can earn tens of thousands in a short time.

Many successful land flippers average between 40-70% return on their investments. Bigger profits of 100% or more are possible if you find deeply discounted properties in high growth areas.

What Risks or Downsides Are There to Land Flipping?

Flipping land – or buying distressed or undervalued property and reselling it for profit – can be extremely lucrative if done right. But there are also risks and downsides to be aware of. Here are some things to keep in mind with how to flip land:

Market Conditions – The real estate market can change quickly. A drop in demand when you want to sell could mean lower prices and profits.
Hidden Issues – Doing thorough due diligence is crucial with how to flip land. Undisclosed liens, disputes, or easements can cut into profits.
Rezoning – If your how to flip land strategy depends on getting more valuable residential or commercial zoning, a denial can limit what you can build and your profit potential.
Holding Costs – Ongoing taxes, debt payments, and upkeep can add up fast if it takes longer than expected to sell with how to flip land deals.
Timing – Paying capital gains taxes if you sell in less than 12 months can impact profit margins with how to flip land flips.
Improvements – Installation of utilities, septic, grading can end up costing more than expected.

Careful evaluation of these risks allows you to create realistic budgets and timelines with how to flip land for maximum profits. Partnering with professionals helps avoid costly surprises.

Is Flipping Land Right For You?

Deciding if flipping land is the right real estate strategy for you comes down to honestly assessing your resources and risk tolerance. Here are some key questions to consider:

Capital – Do you have enough cash on hand to cover the down payment, closing costs, and carrying costs with how to flip land deals? Land flips tie up money for longer than houses.
Time – Are you prepared to spend time finding discounted properties, evaluating deals, and marketing land with how to flip land? Rushing the process can lead to costly mistakes.
Expertise – Do you understand zoning, permitting, development costs to maximize value with how to flip land? If not, are you willing to hire professionals?
Risk Tolerance – Can you withstand a long holding period or changing market conditions that result in lower profits with how to flip land? Expect some deals to take longer or net less.
Location Flexibility – Does your current market offer enough affordable land opportunities suited for how to flip land? You may need to look statewide or regionally.

As long as you realistically assess your personal situation, available time, financial resources, and risk tolerance, flipping land can be a rewarding strategy. Proper planning is key to succeed with how to flip land.

How To Flip Land Conclusion

In summary, how to flip land can be an extremely lucrative real estate strategy when done correctly. However, success with how to flip land depends on finding discounted, undervalued properties, accurately estimating improvement costs, and having the finances to carry the land until resold.

Patience is important, as it may take considerable time to rezone or entitle land for development with how to flip land. Novice investors should partner with real estate agents, contractors, and other professionals when starting out with how to flip land to avoid costly mistakes.

Always look for ways to increase a property’s usable space, accessibility, and permitted use when evaluating how to flip land deals. With the right property and proper budgeting, savvy investors can consistently earn strong returns by flipping land. As with any investment, tolerance for risk and understanding of costs is vital for positive outcomes with how to flip land.