Table of Contents
Land Flipping Case Study: When I spent $3,000 sending direct mail offers to landowners, I didn’t expect it would lead to a $15,000 score on my first land flipping deal. But thanks to a strategic mail marketing campaign, I identified an undervalued plot of land, negotiated a killer purchase price, and quickly sold it for a $15,000 profit.
As a newbie land flipper with no prior experience, I took a chance on a small $3,000 mail marketing test. The campaign connected me to a motivated seller with a problematic piece of undeveloped land. After buying it at a discount, I leveraged my network to find a buyer and sold fast for a 400% return.
Want to learn how I used simple mail marketing to unlock a lucrative land flipping opportunity? Read on for a breakdown of this $3,000 in/$15,000 out deal, and how mail marketing gave me the edge I needed to succeed as a rookie land flipper. With creativity and grit, small investments can yield big rewards.
Land Flipping Case Study: How I picked the Market
When doing a land flipping case study like this one, selecting the right market is crucial to success. As a beginner land flipper, I wanted to minimize risk so I picked a market close to home that I already knew well.
While this land flipping case study focuses on a familiar area, choosing the most optimal market isn’t always about proximity or familiarity. Here are some key factors I evaluated when selecting a market for this profitable land flipping case study:
- Growth potential – I looked for an area with strong population growth and development, indicators of future land demand. Expanding markets provide more exit strategy options.
- Land availability – The area needed to have an adequate inventory of vacant or distressed land parcels suitable for quick flips. I searched for listings under 5 acres with road access and limited site improvements.
- Values – Median land values ranging 2-3x the median home price offer the best flipping upside. I targeted land around $30k-$50k in a market where median homes were $150k.
- Demand drivers – Proximity to necessities like schools, retail, hospitals, and recreation drives land demand. I focused on parcels within 10 minutes of key attractions.
- Competition – Areas with moderate investor activity tend to offer more opportunities. I avoided overheated markets with extensive land flipping activity.
While familiarity inspired this land flipping case study location, applying key selection criteria helps choose optimal markets. But don’t overthink it; there are profits to be made in almost any growing area. The most important thing is taking action – analyze the market, find a promising parcel, and execute your first land flipping case study deal.
If you want to go more in detail about land flipping and finding markets you can check out our post Land Flipping 101.
What type of Marketing I did
Marketing is what makes or breaks a successful land flip. For this profitable land flipping case study, I relied on targeted direct mail marketing to identify motivated sellers. I learned pretty much everything from ReTipster so I included a link to their article it is a great resource.
Direct mail allowed me to cast a wide net and connect with owners of vacant land parcels in my chosen market. I created a professional yet personal-feeling 2-page letter that was sent to over 1,500 surrounding landowners.
The mailer included key details on why I wanted to buy land in the area and how I could help provide a fast, hassle-free exit strategy. To make responding simple, I included a fill-in purchase agreement outlining an offer price purposefully below market value.
This compelled motivated sellers to contact me if they were eager to sell quickly with limited effort. I also offered flexible closing terms and a fast 14-day due diligence period to sweeten the deal.
With an attractive offer and clear response instructions, the direct mail piece effectively presented my deal as a no-brainer opportunity. And it worked – the mailer yielded multiple leads, including the seller of the vacant parcel used in this land flipping case study.
Direct mail provided an inexpensive way to contact hundreds of land owners at once, making it the perfect marketing channel for executing this successful land flipping case study.
Getting the leads
My direct mail piece generated several responses from recipients. Some called to politely decline my offer, while others mailed back completed purchase agreements. A few upset owners contacted me claiming I undervalued their land.
I had to sift through the signed purchase agreements carefully. It turned out my original sight-unseen offers were too low for most properties. This reinforced the importance of thoroughly researching market values before mailing offers.
However, one purchase agreement stood out as a promising lead. The owner was highly motivated to sell due to out-of-state relocation. Additionally, the parcel met my criteria: vacant land, no utilities, undeveloped, and road access.
After researching recent comps and surrounding land values, I realized my initial offer was reasonably near the true market value. I decided to pursue this motivated seller and parcel for this land flipping case study.
The key takeaway? Mass marketing delivers leads, but careful evaluation separates the wheat from the chaff. Most leads won’t pan out, so you must objectively assess each opportunity before proceeding. This process led me to a primed seller and parcel perfect for executing my first profitable land flip.
Calling the Leads
I called my most promising lead and introduced myself, taking time to build rapport with the out-of-state seller. They reiterated their motivation to sell quickly if possible.
In fact, they were willing to accept less than my initial $9,000 offer if we could close in 20 days rather than the 60-90 days stated in my mailer. After conducting due diligence on the vacant parcel, I estimated a potential sales price around $20,000 if I held it long-term.
But given the seller’s flexibility on price for a rapid close, I felt I could still profit while meeting their 20-day request. We ultimately settled on a purchase price of $4,500, allowing me to acquire the land at a significant discount by acting quickly.
This experience demonstrated the importance of building a connection with motivated sellers and understanding their goals. My willingness to close fast earned me huge savings, while still capitalizing on the spread between my buy and sell prices. Identifying and seizing these win-win scenarios is instrumental in executing profitable land flipping case studies.
Scheduling the Closing
To officially change the purchase price and closing date, the seller and I signed an amendment using PandaDoc. This formally updated the original purchase agreement to reflect the $4,500 price and 20-day close timeline.
With the documentation in place, I swiftly contacted a local title company to schedule closing and process title work within the seller’s requested timeframe. I provided the title company with the purchase agreement, amendment, and both parties’ contact information.
Despite the tight deadline, the title company assured me they could handle the accelerated schedule. After a rushed 15-day closing period, we successfully closed on the vacant land parcel, meeting the seller’s request and keeping this land flipping case study on track.
Acting quickly to lock down a closing date and finalize documentation was essential to acquiring this discounted property while also suiting the seller’s needs. When flipping land, nailing down the closing early is key – don’t leave this crucial step until the last minute!
Marketing to Buyers
With the vacant land parcel now owned, it was time to find a buyer. I hired a drone videographer for $200 to capture appealing aerial footage and photography showcasing the land, surrounding area, and road access.
Using this content, I created a listing on FlatFlee, an MLS platform, and listed the land for $22,000 without any broker fees to save money. I highlighted the convenient location, vacant/undeveloped status, and acreage.
In addition to FlatFlee, I listed the land on Facebook Marketplace and Craigslist to maximize exposure. At first, interest was slow. After 15 days without any calls or contacts, I started to worry I may have overpaid or misjudged demand.
As I approached 30 days of waiting, doubts crept in. What if no one wants this land? Did I just lose $4,500? Will it ever sell? I contemplated making changes – hiring an agent, reshooting photos, or dropping my price.
But patience paid off. On day 30, I checked my email and saw a cash offer for $19,000 with a quick 30-day close. After consulting with the buyer’s agent, I promptly accepted the terms, and was set to net $15,000 profit on this land flipping case study.
This experience taught me that selling land requires persistence. By maintaining my asking price despite the initial lack of interest, I optimized profits while finding a motivated buyer willing to meet my terms. Patience and proper pricing are crucial when marketing land.
Closing the Deal
After accepting the buyer’s full-price $19,000 cash offer with a 30-day close, it was time to finalize this land flipping deal.
I promptly signed the purchase agreement and sent it over to the title company I originally used when buying the land. Since they had recently handled the title work, they could expedite the process for a quick 30-day closing.
The title company reviewed the contract and verified they could meet the 30-day closing timeframe stipulated in the purchase agreement.
With the signed paperwork in process, I worked closely with the title company and buyer to coordinate closing and transfer of funds. Within 30 days, we had closed!
The title company sent me the wire for $19,000. So to recap – I spent $3,000 on marketing, bought the land for $4,500, and sold for $19,000. I also spent about $500 on drone video and Flatfee listing, plus around $3,000 in title fees and $1,000 to the buyer’s broker.
So while on the surface it looked like I netted $15,000, my true profit was $7,000 after expenses. It’s important to share this number, as running a business has more costs than it may seem. But $7,000 is a great score for the amount of work I put in, making land flipping a lucrative side gig or full-time business.
Now you might be thinking this is great but is it legal? Well the short answer is yes it is legal all you are doing is buying land and selling land and that has been legal for a long time. If you want to learn more we have an article Is Land Flipping Legal?
Want to learn more check out How to Flip Land.