Is it realistic to flip land?

Question

Recently took the clickbait and watched an add for the Dirt Rich book on my Facebook feed which was all about either flipping tax delinquent land or buying tax delinquent land and owner financing it for passive income. Author made it sound super easy which is to be expected, but I'm wondering if it is as realistic as described? Wondering if anyone has done it in the Connecticut area or if it's more realistic to buy land remotely, sight unseen? Would love to connect to try to learn if anyone is willing to share their info! I'm a big reader so if it's a list of the best books, that would be great as well. Thank you in advance!

Jamie Goldenberg · Answer

I’ve built my business flipping infill lots in North Carolina, so I live in the land world full-time. I quit my job doing this and have been a full time land investor for 3+ years now (in the game for 7 years).

Is it possible to make money buying tax-delinquent land and owner financing it? Yes. Is it “super easy”? No.

The strategy works but the real money isn’t in blindly bidding at tax sales. It’s in understanding land values, demand, access, flood zones, title, and who your end buyer is before you ever buy.

Personally, I focus more on sourcing off-market lots in builder-active markets rather than gambling at tax auctions. It’s more predictable and scalable.

You can absolutely buy remotely and sight unseen, I do it all the time, but only with tight due diligence.

If you’re just starting, I’d suggest learning how to evaluate land properly first. The model works. The marketing just oversimplifies it.

Happy to connect.

Jamie Goldenberg · Answer

Jeff happy to chat with, I can walk you through a few different ways to get started. Depending on your time availability and current capital, I'd suggest different ways to get started.

Chris Seveney · Answer

Is it realistic? Yes. Is it going to be extremely profitable and allow you to do it as a full-time venture? Probably not.

We're also entering a time where the economy is not doing as well and pricing is starting to soften, which typically people stop buying land during that time. The reason is that land does not have great appreciation and it is also not cash flowing. Again, it can be done, but I would not have it be a main focus of my model unless I'm in an area I know really well and am able to get deals off-market and builders would want the land.

Jeff Piscioniere · Answer

@Jamie Goldenberg curious where to begin to learn? Are there books or sites to learn without breaking the bank? Sounds like there's a definitive process and protocol to follow and I'm sure it's not something easy to compile without first sourcing the knowledge from elsewhere. Any directions you can point me in would greatly be appreciated. Thank you!

Travis Goodwin · Answer

It can work, but it is usually not as easy as the ads make it sound.

Buying tax delinquent land and owner financing it can be a solid strategy. Some investors do very well with it, especially in areas where land is inexpensive and there is steady demand from buyers who want flexible payments.

The part that gets glossed over in a lot of those ads is the work behind it. You still need to research the property, make sure there are no major issues with access, wetlands, zoning, or other restrictions. Some parcels are cheap for a reason, so due diligence becomes really important.

A lot of people who do land investing successfully buy in multiple states and sometimes purchase remotely. That said, they usually build systems for checking the property, reviewing maps, confirming access, and sometimes even hiring someone locally to verify things before buying.

It can be a real strategy, but like most things in real estate it is more of a business than a shortcut.

If you want to connect further and talk through what you are seeing in your area, feel free to let me know. I’m always happy to share what I’ve seen work and what to watch out for.

Edgar U. · Answer

Been doing land flipping since 2018, and I will provide a couple of pros/cons (nothing is written by AI).

Pros. Very low point of entry. You could buy raw land acreage at $500-$5,000. You could then turn around and sell them for double or triple at times. Example, I got a verbal offer accepted at $1,250 for an infill lot in MS, I could buy this and sell it for $5,00-$6,000. I could then offer owner financing on it and make a bit more. I could give many examples like this and more just know that there is a lot of fine intricacies and details behind this "easy money" that most gurus don't teach.

Cons. Most if not all of my land colleagues, land investors, whom either got started or got in the game later post 2018 aren't land investors anymore. This alone should tell you the impact this economy has made upon some folks.

Experience. Buy only land that you would personally buy or invest in. Example, an acreage where folks could do mobile home / homestead, infill lots that are actually buildable or mobile friendly. Stay within 1-2 hours of major city. Don't buy HOA/POA until you feel comfortable

Overall. If I were to get started now, I would only do it as a part time basis and not quit my job especially if you have insurance, family, or can't handle the stress of inconsistent income sway. I say this because a lot of folks are going to read books, listen to podcast, or worst watch a video of "land investors" on YouTube and think you'll make it. It's tough right now, soften the blow by doing it part time on your own time.

Send me a PM if you'd like to connect anytime!

Jamie Goldenberg · Answer

@Edgar U. while I agree that its not as easy as people online make it sound, I disagree with your reasoning for why people who started post 2018 have exited. You can say this about any entrepreneurial venture. Most people don't last 5 years.

I agree, that the traditional "land investing" model of buying cheap rural land has gotten more saturated, but its not dead. I believe if you want to get into this space, you need to get after "nicer" properties that you can make $10k+ on a flip.

This is where you get past the noise of the newbies and the people who half a$$ their business, and start working with more sophisticated buyers.

You just need to be more diligent in picking your markets, building a buyers list, and keeping disciplined with your cost.

Last note: whether its rentals, STRs, flipping, land investing, etc if you want to be successful it takes effort, patience, learning from mistakes and ultimately grit.

Steve K. · Answer

I’ve worked with a few land flippers (one who has built up a solid national business with good systems and a large team in place who is doing very well).

In my experience it can be quite lucrative but the learning curve is steep. I would not say it’s easy money.

You’ll need to learn a lot in order to become an expert in sourcing properties/ marketing/ acquisitions, and do tons of due diligence such as understanding and dealing with title issues and other legal issues like access and easements. You will analyze 100’s of properties to find one good flip candidate, and market to tons of property owners hoping one of them will have a marketable property that you can get for a discount. You’ll need to have great local market knowledge to understand pricing, building costs, taxes (can be double on land in some areas), permitting requirements/ zoning/ entitlement/ timeframe/ land use regulations/ environmental issues/ water and sewer/ road building costs/ utilities etc. for any market you’re working in. It can be a lot to learn and the less you know the higher the risk.

For example there is a lot (pardon the pun) of land in my area that was mined heavily or does not have any legal access. One lot can be worth millions while the similar on the surface one next to it is worthless. Flippers in this area have to filter through a lot of chaff and know what to look out for which takes time and local specialized knowledge. I’d focus on specific locations and really get to know them super well as opposed to casting a wide net. Ideally locations that are poised for growth that have access to schools, jobs, transportation, shopping, planned developments, natural attractions etc. as opposed to remote areas that will be much less marketable.

A lot of people getting into land flipping probably underestimate hidden costs especially holding costs as land can take a lot longer to sell than other property types. Title issues/ legal issues/ access issues and needing to make improvements in order to sell can create other hidden costs, as well as marketing/ acquisition costs being higher than you might expect. Sourcing good deals with willing sellers is probably the hardest part so it is building a sales and marketing campaign essentially. Making cash offers and negotiating well/ being good at sales is a must.

There are also a lot of scammers operating in this space right now. I’m pretty sure that somewhere in Southeast Asia there is a vacant land scam guru teaching people how to flip vacant land without ever actually owning it by impersonating the true owner. It can be harder to verify whether or not you’re dealing with the real land owner than you’d think. The sophisticated ones have fake ID, forged ownership documents and a convincing story so you have to use tools that a PI uses to tell who is a real property owner and who is fake. Real estate agents, title companies, and attorneys have fallen for it and have handled transactions for fake sellers. Bringing this up because it is so prevalent right now that those who deal in land will have come across situations that make them wary of people operating in land deals remotely.

But it can be a good business. I’d say it is lower barrier to entry in terms of capital investment, with lower overhead than normal flipping but takes significant time investment getting educated on how to do proper due diligence and effective marketing then building the required systems and teams in order to scale.

Harveer Singh · Answer

It can be, but the people selling courses usually make it sound easier than it is.

Most of the successful land investors I know spend a lot of time researching access, zoning, floodplain issues, septic feasibility, market demand, and title problems before they buy. The money is usually made on the purchase, not the sale.

Buying sight unseen can work, but only if your due diligence process is solid.

Brian Vallario · Answer

Yea, everyone has already said it but due-diligence is your new hobby. Build a system to compare on equal footing and research sales in your target markets. Happy to send over a sample of what we use if you're interested.

Is it realistic to flip land?

Is it realistic to flip land?

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