How to Flip Land: Start a Land Flipping Business
Creating disposable income is a dream that with some hard work can become a reality. With some hefty extra money, you will have more freedom to make choices about your life and pursue your goals, such as traveling, starting a family, or pursuing hobbies or interests. Learning how to flip land is one way to create the income that could change your life.
It’s difficult to trade your time for money, especially when it feels like you aren’t getting paid enough. This makes finding a second and third job almost meaningless because you aren’t able to enjoy the life that you want. A business flipping land could be the solution for you.
The most important thing to remember about flipping land is that you won’t become an overnight success. It does take time to get into the business, build up your knowledge, and actually make money from the land. If you are interested in starting your own land-flipping business, take a look at the steps below to get started.
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What is a Land Flipping Business?
This business is defined by the process of buying and then selling the land for a higher price than you bought it for. This could be buying a large plot of land and then selling off smaller plots to others for a profit. It is similar to house flipping which is the process of buying land with a home on it, fixing up the home, and then reselling it for a higher price.
Land flipping isn’t a new concept. However, more and more people are looking into land-flipping options. Given the rise in HGTV types of shows, people have become inspired to buy and flip properties. Additionally, it is a solid plan to make money without having to trade in more of your time for a paycheck.
Related: How to Flip Money
Do You Need a License to Have a Land Flipping Business?
Technically, you don’t need a license to flip land. However, a real estate license could provide you with a jump start in the business, as it will give you additional knowledge regarding the sales of properties. You could also save money on agent fees during the buying and selling process because you would be your own agent in the deals.
If you are going to do this as an actual business, it is important to consider applying for free EIN (Employer Identification Number) from the IRS. This will help legitimize your business as well as qualify you for business banking accounts and potentially loans, if necessary.
Other Land Flipping Requirements and Qualifications
Patience is probably one of the most important qualifications if you are interested in flipping land for profit. This isn’t a business that will typically move very quickly. There is quite a bit of paperwork that is involved and some back and forth between agents and brokers or the land owners and buyers if you work with them directly.
Patience is a skill and one that not many people possess, especially when it comes to making money. If you know this going into the business, then the waiting won’t be so difficult. In addition, if you don’t have the knowledge and experience of flipping houses, it would be in your best interest to take some free courses or partner with someone who can educate you.
Salary or Pay Expectations for a Land Flipping Business
When you learn how to flip land, you will be excited to hear that many land flippers make 100% return on investment on top of at least 15% interest per year. Depending on your cash flow and how much you are able to purchase, this could dramatically change your income.
It can be easy to get into flipping land for a profit. However, you need to be cautious of the steps you need to take in order to create a successful venture for yourself.
How to Start a Land Flipping Business
If you are ready to learn how to flip land and begin your own land-flipping business, review the following steps below. You could be on your way to making more money this year.
1. Start Saving Up
Getting a loan for the purchase of land can be difficult to do in comparison to getting a home loan. You will need to start saving money now if you want to successfully enter into the land-flipping business.
Additionally, you can partner with a private investor whether it be family and friends or a colleague. Work with an attorney to draft loan documents that you can use for each loan you take at the beginning of your venture.
Luckily, you can research opportunities to purchase land for as little as $1,000. And offering a juicy interest rate to your private investor is easy when you find land that is extremely undervalued.
2. Watch for Land Deals
Don’t just wake up one day and purchase the first piece of land you see for sale in an ad. Do your research beforehand. This means you need to land watch.
Take a look at the areas you are interested in, what kind of developments are going on around it, and if there is potential for the property value to increase in the next few years.
You will also want to be on the lookout for cheap land. Some sellers don’t take the time to clean up the land or define the property lines, which could be to your benefit when making an offer.
If you see plots of land for sale in your purchase range, consider making a lower offer. It doesn’t hurt to offer lower than asking price to see what the seller says. This will give you the opportunity to flip the land for a higher return on your investment.
Related: How to Invest and Make Money Daily
3. Calculate the Costs
While there is definitely money to be made flipping land, you have to be smart about your buying costs and selling prices. For example, you don’t want to purchase land, pay closing costs, and then have to pay selling fees and taxes, only to come out breaking even or make just a few hundred dollars. It won’t be worth your time.
Instead, do the math. Factor in closing costs, property taxes, and other fees that come with purchasing and selling the land. Consider how long you expect to hold onto the property. Sometimes, you will see an increase in a few years so it would be worth holding on to. While other times, the low price can be flipped into high profits immediately.
Related: How to Start a Shoe Flipping Business
4. Hire a Professional or Take a Land Flipping Course
If you don’t have the knowledge or know the lingo in real estate, it is smart to hire a professional who can help you wade through the technical terminology. You can do this by yourself but it’s best to have someone there to guide you in case you through the first few sales in case you have any questions.
You can also join The Land Profit Generator’s free online training to learn how to flip real estate. This class will show you how to make a profit with pennies on the dollar without having to worry about buying land with houses. Learn the three land flipping opportunities that can boost your income.
5. Sell the Land
When you are ready to sell the land, list it for an amount that will turn you a profit. Consider any improvement costs, selling fees, or interest payements, if necessary.
Think about the amount of money you want to make from the deal so that you know the absolute bottom number you can accept in an offer. Use the profits to purchase another piece of land and start the process over again on a larger piece of land.
As you progress in your land flipping business, you will have more capital to buy new properties with cash and therefore cut out middleman fees.
Questions New Land Flippers Are Asking
Find out what other land flippers are asking before deciding to jump into the business. Having many of the answers beforehand will help you make better decisions for your future.
Can buying land make you rich?
The answer to this question is subjective depending on who you ask. If you truly want to know if flipping land will make a difference in your income, the answer is yes. But you have to be smart about it and be willing to learn with each transaction.
Related: Jobs for Smart People
Do you have to pay taxes on flipping?
The answer to this will vary depending on where you live. Some states require a minimum amount of time to own the land to avoid additional taxes. Do your research on the area you live in or the area in which you purchase land (if it’s different from where you live) to determine if and when you have to pay taxes on flipping land.
Is land a good investment?
Purchasing land is almost always a good investment when its purchased at a low cost. Even if you just let it sit for a few years, the land will eventually increase in value or at the very least hold its value. There are changes that come in every part of the country. If you own land in an area that will be up and coming, it could be a great opportunity to invest.
In addition, you may also have builders coming to you with offers to buy your land so that they can build homes or businesses. Having land can be a good investment for your financial future.
Is land flipping legal?
In most cases, land flipping is completely legal. The only time it is not legal is when multiple parties collaborate and purchase plots of land in the same area to inflate prices. However, if you want to legitimately learn how to flip land for profit, then you can absolutely do that legally using the steps mentioned in this land-flipping guide.
Related: The Best Things to Flip for Cash Online or In Person
Who Should Start a Land-Flipping Business
Financial stress is one of the top reasons why people look into flipping land for profit. Earning more money can alleviate some of this stress by providing more resources to pay expenses and bills. Flipping land could be that financial relief you need.
If you are willing to learn how to flip land and be patient with the process, you could run a successful land-flipping business. Start small and work your way up to larger purchases and sales. The income you make from flipping land will help set you up for financial security in the future.
If you are saying “yes” to all of this, now is the time to learn from land flipping professionals like Jack and Michelle Bosch. Invest in their program to help you get ahead in the land-flipping business. Get all of your questions answered with their jump start program, The Land Profit Maximizer.
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