How to Flip Raw/Vacant Land

[Max Householder]

Hi, I got turned onto Bigger Pockets when I found the podcast sometime last year and have listened to almost all of the shows (up to around show #045 now). I've always been interested in real estate, but with zero experience, I've felt like the knowledge barrier to entry was pretty great. I was plugging along trying to learn as much as I could while searching for the right niche when show #039 with Seth Williams really peaked my interest. It sounded like something anyone could do since it eliminates having to work with a bank (assuming you have cash on hand).

I understand Seth's techniques for finding motivated sellers. I also do a fair bit of property research virtually for my day job, so I'm comfortable with doing the due diligence online.

So, my questions begin here: If I did everything right and found a motivated seller and the property seemed like a good enough deal to make an offer, what now?!

Do either myself or the seller need to be represented by an agent? (I am not a licensed agent)

Do I call a title company and order/pay for a title search at this point before making an offer or does that come later? Where does title insurance fit in?

Once a price is agreed, how do you close the sale? Would I have to call a title company and ask to set up a closing or is this step unnecessary since there's no financing? I sold my car recently on Craiglist, so I know that can be done with simple cash and a few signatures on the title. Does land work the same way if you know where to file the paperwork? A local title company charges $620 for a closing on a typical SFR with a mortgage. If I could indeed find someone willing to sell their land for a few hundred dollars, those closing costs would really eat into my profits when trying to flip it.

The concept of flipping the land sounds so simple: Find a motivated seller, make a low offer, they accept, then you flip it for more. Seems like there are a ton of steps in between the the acceptance of an offer and "the flip" that don't get covered in the podcast or in various blog posts I've read (I read all the ones on Seth's website and quite a few forum threads on here).

Lastly, could this be a blog/podcast subject some time? I feel like most of the people I've heard interviewed had some prior connection to real estate either through a previous job or their current/former day job or through a spouse or family member. I don't have any immediate connections like that, so the nuts-and-bolts of closing the various types of real estate deals is a little lost on me and usually skimmed over on the podcast as simply "buying" or "selling". I'm able to adapt along the way when learning something new, but initially I like to know the parameters of "how it's supposed to work" as I am very much a step 1, step 2, step 3 type of guy. Thanks in advance for the responses! Sorry this is so long.

[Mark Podolsky]

Hey Garrison,

I've been flipping land full time since 2001. On smaller less expensive deals, I typically have my VA or an abstractor do my title search. I don't need to incur the expense of a title company. For houses and bigger dollar properties, I would only use a title company.

However, I just closed a 5 acre parcel in Colorado for $525 plus $200 in back taxes. Title was clean. I sold it 2 days later for over $6095 and the buyer didn't insist on closing through a title company.

Land flipping is very simple, but of course every deal is different and every County / State has their own specific laws and process.

I buy all my properties myself and sell them myself as FSBO. No need for an agent. For bigger deals, you will want to use a local real estate agent, but for smaller land deals no need.

Closing the deal is simple. I typically use notarypro.com or a mobile notary and send the deed for the seller to sign along with a cashiers check to the notary. The notary then has the seller sign the deed, notarizes it, gives the seller funds and then sends my office back the deed for proper recordation.

That's really it. I then flip the property online and rinse and repeat...

If you want to learn more, I also have a podcast. Simply google "The Land Geek Podcast". Seth Williams is very knowledgable as well at retipster.com.

Good luck!