Why Land Flipping Might Be Better
There is virtually no competition for land , especially rural land . This area of investing is overflowing with a lot of opportunity – there is an abundance of forgotten land out there that sells for cheap ! You can purchase land for literally pennies on the dollar .
With land you do not have to know as much about real estate like construction , termites , mold and all the other things of that nature that you must know when investing in houses . Here are some compelling reasons to add land flipping to your real estate investing portfolio :
Ihave been buying and selling residential real estate as a real estate investor for almost seven years now . I have invested in just about every avenue of real estate investing from Preconstruction , Assignments , Tax liens , Rehabbing , Probate , Bankruptcies , Preforeclosures , Short Sales , Foreclosures and REOs , Buy & Hold , and FSBO ' s . I have profited from literally all of these strategies and showed others how to as well .
However , lately I have learned about a twist to an old strategy , one that I had heard about , but had never done . Buying land and reselling it via owner financing for a monthly profit , is the new real estate investing strategy . It goes even further , after you buy it and sell it with owner financing you can then eventually flip this property to another buyer . I picked this up from Jack Bosch , who has closed over 5400 land deals himself and I think he is on to something !
I have found the biggest stopping points for many of my new real estate investing students are usually :
• Very low , ( or sometimes none ), acquisition costs ;
• Lower risk – limited money down to lose ;
• Lower inspection requirements ;
• Quicker closings ;
• Less initial capital output ;
• Buyers are usually more savvy investors ;
• Good Potential for monthly residual income with your owner financing ;
• Usually no upkeep required ;
• Usually low holding costs ( no fire insurance , fix up , utilities involved );
• Higher number of buyers are repeat buyers ( compared to home end buyers ).
# 1 – The risk of getting into something they cannot find funding for and letting people down . # 2 – Getting into a deal and finding out later something was missed , causing financial loss .
Many new real estate investors are frozen stiff because of these fears . It is for this reason I ' ve listed some of the reasons a real estate investor might want to add land flipping to their portfolio of investments .
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