Flipping land to get started?

[Jason Rowlett]

I am considering buying some parcels of land near a lake which are approx. 0.3-0.4 acres apiece priced at $4,000.00 apiece ($149.00/mo). However, the land is not cleared. Clearing the land is something I am willing to do myself and then sell to a homebuilder for a profit. Nearby "cleared" parcels are  selling for $15k-20k per parcel without water and septic. I am still looking into city codes regarding building to see if anything might deter a buyer. My plan would be to buy one parcel, clear the land, flip it to a homebuilder and then repeat.

• Might this be a wise way to build up cash reserves as I am getting started?
• Is "flipping land" common among successful RE investors?
• What variables would a successful investor consider in this opportunity?

Thanks!

[Andrew Ware]

I don't really know anything about raw land.  But episode 39 of the podcast was about land flipping.

What is involved with this clearing? Removing trees, stumps, and leveling? Are there drainage issues? That sounds like a job you'd know whether you were suited for. Is it zoned for building already? I don't know about Texas but here there are significant laws about building near water. My last question is are those properties that are selling for 15k-20 actually moving or sitting on the MLS? Here lots can sit for years. If you can make the money worth the effort then go for it. I would definitely want to talk to the zoning office and a builder in my area before I even considered it.