Vacant Land Investing Experience?

Question

Hi everyone!

My name is Jessica and I've been looking to get started in the world of real estate investing. One particular technique has caught my eye and that's land flipping/raw land investing/land wholesaling. It seems like a way to get familiar with the world of real estate investing that's not too expensive and much easier to deal with than physical properties. If anyone out there with any experience is willing to share some wisdom it would be greatly appreciated! Also if there are any spec builders in the Boston MA area that are looking for parcels of land to buy I would love to work with you! Thank You!

Joshua A. · Answer

Hi Jessica,

I’ve been working almost exclusively with land since 2014; I currently work as part of a team that operates a nationwide land wholesaling business. I sell the lots after our acquisitions people buy them, but I could help you out with every aspect of the business.

Personally, I love the land business. It gets ignored by most real estate professionals and investors, I think partly because it can be difficult to determine a lots value sometimes. But to me, land is the most exciting niche in the real estate world. It has the largest inventory of available properties, out of all the sectors of the real estate market. It has the most creative deals; in fact you almost HAVE TO get creative in order to make land deals happen, because the traditional forms of financing a purchase don’t usually apply in land. Banks don’t typically loan money to acquire land, so there’s a lot of seller financing deals, and a lot of things like joint venture partnerships, land contracts, lease options, etc. It’s really a completely different world than the other sector’s of the real estate world.

So, I’m willing to help you with whatever you need. Just let me know.

Jessica Pimentel · Answer

@Joe Schmitt Hi Joe! Thank you for responding! I also have been considering buying buildable lots and selling to spec builders or anyone interested in constructing new property. I've just recently got interested so I'm still doing my research and trying to learn as much as I can. To be truthful I'm not worried much about selling because the market for new construction in MA is very active. I'm more worried about finding sellers motivated enough to sell their land to me for a good deal. I heard tax delinquent lists are a good start but I'm not sure. Ok I will PM you for suggestions thank you!

Jessica Pimentel · Answer

@John Teachout Thanks for responding! I've been thinking about land considering I only have a few thousand saved and know I can make a purchase that's in my price range and can make a pretty decent profit. If you have any other real estate investing techniques you can recommend that don't require too much upfront please let me know!

Joe Schmitt · Answer

@John Teachout

It’s simple, but it’s not easy. As the old saying goes, if it were easy, everyone would do it.

I have done rather well in this business and consider it a path to prosperity mainly because the margins are so good. I regularly realize 300% ROI or more. Houses simply do not provide that kind of return.

Understanding the intended use of your end buyer as well as zooming and development laws are definitely part of the puzzle. I choose to do use on buildable recreational land as opposed to infill lots or agricultural land. There is definitely a marketing component to this business as well. You need to market hard and use multiple channels to attract buyers. Giving an agent a listing to let them right some crummy ad copy and throwing a parcel map on the MLS doesn’t cut it.

There are indeed several courses out there. All of them have their merits, but some are define it or better than others. Some focus on different types of land and some focus more on cashflow from seller financing while others are definitely geared toward cash flips.

Feel free to PM me if you have questions or want some suggestions on selling your lot.

Joe Schmitt · Answer

@Jessica Pimentel

I’m a land investor and I have some definite thoughts on how to get started. PM me if I can help.

John Teachout · Answer

One important thing to consider if you're buying vacant land is if it can be used for whatever purpose you think your potential market would want it for. eg, some municipalities raze vacant houses from time to time and these lots can often be picked up cheap. However, many of these same municipalities have since revised codes that won't allow new construction on that size lot. In those cases, the landlot would only have value to a neighbor or if you could put a couple of them together. Like any aspect of REI, just be sure to do your due diligence before jumping into something.

John Teachout · Answer

I've seen the advertisements and seminars for flipping vacant land. My opinion on it is that it's not as simple as it seems. Ok, maybe simple, but vacant land has a limited market. eg, some city lots have a zero or negative value. Farmland or larger pieces of acreage may be hard to sell and typically don't appreciate much. I've purchased and sold land but I don't see it as a path to wealth. I currently have a 60 acre piece in Georgia that's in a remote area and there really isn't even a practical way to show the property without me doing it myself.

Vacant Land Investing Experience?

Most Popular Reply