Many people think that real estate consists of only houses and buying houses. And if you want to get big at it, then you should invest a lot to profit even more. Oh, and wait years.
That’s not true.
An affordable and quicker alternative exists, and it’s not illegal.
It’s called land flipping.
Now, contrary to what the popular crowd thinks, investing on land is an extremely lucrative and less competitive space that investing on developed house. And more importantly, investing on raw, vacant land is the bonus.
What does land flipping mean? It means finding vacant plots of land available for sale, buy it for as cheap as $1000 dollars, make it look a bit pretty and sell it at a higher price.
If you need an analogy or two, think of it like this:
A diamond is very costly. But it’s only pretty after the raw coal is chapped in strategic places to make the diamond reflect and refract light, does it look good.
The same thing happens in land flipping.
Here is a list of steps you must take to successfully gain a profit off vacant land:
Do an extensive market research
Do an extensive market research about available vacant lands and pick one which you feel has the potential to see for more with minor adjustments.
Picking up desirable land requires you to go through a list of criteria so that you can sell it. When it comes to buying a house, you mainly see the cleanliness, zoning area and the proximity to utilities. But when it comes to land, you don’t really have a house to judge the plot’s usefulness. There are various factors which come into play, like topography, flood lines and more. Here is a detailed land buying guide for you.
Shortlist some plots and buy
After your intensive research, pick some sellers and see which one fits your requirements best. And don’t believe everything the seller tells about the legitimacy of the land. You need to do your homework and scan all the documents carefully. Make sure that you won’t be falling into a soup if you buy it. Be aware of frauds and illegal schemes and know that you aren’t falling into one.
Now how do you make your vacant piece of plot look pretty?
Draw the boundary of your plot.
It is always easy to sell if your buyer knows exactly what he is getting. He wants to see how big the plot is. He should imagine what he can do with the land, but the outline is for you make. You don’t have to get fancy. Even makeshift fence with a little bit of while paint can help.
Clean your plot.
Brush the bushes away. Thorny plants stopping a part of your plat to be access? Get rid of them. If your trees look too shabby or shaggy, you can even go so far as to trimming them. Remember the diamond analogy?
That’s literally it. If you want to get a bit too fancy, then you can build a driveway, grow some trees, plant some flowers. Of course, if you invest more, you’ll profit more.
This is one of the most overlooked points. If you want that pretty land to sell fast and hard, you need to see to it that you make it easy for the sellers to pay for it. This matters even if you are selling your plot for as low as $3500. Let them know that they can pay you monthly installments.
But to make sure that buyers take it, you need to keep a low monthly payment amount but higher interest rate.
This ensures the best of both worlds.