When most people in the real estate industry consider the wholesale practice, they think about wholesaling underdeveloped properties. However, it is also possible for wholesalers to flip vacant land, and it’s one of the most profitable ways to engage in wholesaling.
Wholesaling vacant land, also known as “land flipping” or “land investing,” is the process of purchasing a parcel at 5% to 35% of its current market value, and then selling it for 50% to 80% of its market value.
The land flipping process begins with extensive market research to find the most profitable areas within your budget. You will also need to review the state and local laws associated with vacant land transactions in your area. After choosing the best location, market your services through digital media marketing, direct mail, and lead-generating partnerships with professional cold callers for a personal touch. Once the leads come pouring in, you need to turn them over to your sales team so they can seal the deal.
If you’re not well-versed in the house-flipping process, you can wholesale vacant land is a great way and learn about wholesaling while earning a profit. When it comes to the wholesale process, the only true limitations are zoning regulations. With extensive research, perseverance, and sizable profit margins, you can build a highly successful company that will support you for years to come.
5 Reasons to Wholesale Vacant Land
Wholesaling vacant land comes with unique benefits that other forms of real estate investment do not offer. With no significant renovations, troublesome tenants, or expensive mortgage payments, wholesaling vacant land is the real estate industry’s best-kept secret. If that’s not convincing enough, check out the best reasons to get started wholesaling vacant land today.
1. Lower Upfront Costs and Minimal Risk
Real estate investors typically become interested in wholesaling land when they learn about the low upfront costs involved with this endeavor. There are many profitable markets throughout the U.S. where local cities sell vacant land for a meager price. For instance, land flippers can attend auctions where cities sell land for prices as low as $5,000 for only 10% down. As your business expands, you can streamline and optimize your investment strategy to earn significant profits with relatively low risk.
2. Little to No Renovations
Purchasing a pre-built home leaves buyers with a generic home that often lacks their aesthetic preferences, but buying vacant land frees buyers from this inherent pitfall. Potential buyers are interested in purchasing vacant land because it presents them with the opportunity to design their property as they please, so long as it adheres to the zoning laws in their area.
As a land flipper, you won’t need to make extensive renovations and provide buyers with a move-in-ready property. Although vacant land may require modifications in terms of landscaping, these changes are minimal and low-cost when you are looking to wholesale. Of course, you will need to determine the quality of the soil and mark the boundaries of property lines before adding fencing or foliage, but these renovations will increase the lot’s resale value to maximize your profit.
3. High Potential ROI
Since you aren’t required to undergo inspections or renovate a house, your total investment only includes the cost of the land and possible landscaping. These lower upfront costs reduce your risk while providing you with the potential to exceed ROIs above 10%.
Although there are several different types of land to wholesale, most investors choose commercial or residential land investments. These lots are already designated for a specific use, which allows investors to assess their profitability early on. Furthermore, it’s easier to obtain residential and commercial land, making it the ideal option for beginner investors.
4. Reduced Competition
Since most investors are unfamiliar with flipping land, it’s much easier to build your clientele than other forms of real estate investing. In contrast, wholesaling houses come with greater competition because many investors are interested in cashing in. When wholesaling homes, it is challenging for beginner investors to find a profitable area and houses suitable for the wholesaling process.
Wholesaling properties comes with inherent limitations because investors are bound to a few specific areas with suitable properties. However, since 47% percent of land in the U.S. remains unoccupied, land flippers have the entire nation at their disposal.
5. Easy-to-Find Deals
With ample parcels of land and minimal competition, it’s relatively easy to find deals when wholesaling vacant land. You can find deals using online listing platforms such as LoopNet and Commercial and Industry Multiple Listing Service. Additionally, some wholesalers drive around their area to find profitable parcels of land.
A strategic marketing campaign could even have leads coming to you. To get started, create a buying website to increase your credibility and allow sellers to submit property information directly to you. In addition, consider working with a team of professional cold callers to attract qualified leads. Professional cold callers will learn about your ideal client and create an engaging script explaining your services’ benefits. When a lead appears interested, cold callers will send the information directly to your team, so they can close the deal. With the right tools, finding vacant land for wholesale is easier than ever.
Find Sellers and Buyers with Call Motivated Sellers
To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll use our expertise to warm up leads, find the best prospects and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.
Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals.
If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!