Where to wholesale land?

Question

Hi guys. I’ve been researching wholesaling land the last week.  I’m currently trying to figure out the best state for me to start in. I’ve narrowed it down to Tennessee, Florida, North Carolina, Michigan, Alabama, Arkansas, and Indiana. However now I’m struggling to figure out how to narrow it down even further. I’m nervous if I go somewhere over saturated with land wholesalers I won’t have as good of luck.  I based this off of the number of new construction homes in state, how much vacant land, how much those things are selling and their availability, laws, among other things. If anyone has any recommendations on how to narrow it down further or can vouch for one state over another let me know!

Bryant Brislin · Answer

Most people who wholesale land whole-tail it, meaning they close it on themselves (with their own money or someone else's) and then they put it on the MLS, since finding buyers for land can be like trying to find a needle in a haystack.  If you are wholesaling in a market where it looks like a checkerboard and clearly builders are picking off lots, one-by-one, and you are able to source a lot at 1/5 or 2/3 approx of the retail value (the amount builders will pay) then maybe you can wholesale it without having to close on it first.  Listen to Ray Zhang's interview with Steve Trang of Real Estate Disruptors on YT from approx May/June 2023 and he breaks down land wholesaling.

David Ramirez · Answer

I don't wholesale land; I wholesale single and multi-families. What I have found when optimizing my marketing dollars is that the return on investment within 30 minutes of a metropolitan city is little to none. When I started focusing more on the surrounding counties 45 minutes outside a metropolitan city, my return on investment increased tremendously.

Adam Schneider · Answer

@Allyson Mitchell

Did you invest in a seminar or a course for wholesaling land, or how did you become educated in this space?

Wyatt Wolff · Answer

I think the better question is, where do you have a disproportionate advantage.

JT Olmstead · Answer

There are two main ways I see people successfully wholesaling land:1. Pick it up at 20 to 30% of value and find land investors who will buy it from you at 50% of market. People with acquisition machines capable of doing this can quickly wholesale their entire inventory.2. Buy with a specific buyer (or group of buyers) in mind. If you're effectively filling orders for a legit buyer then wholesaling to them becomes a straightforward matter.As was already mentioned, however, you may be best served not focusing on trying to wholesale and instead buying the land at a steep discount and going straight to the retail market. The flip isn't always as fast but it's a very sustainable model with excellent margins.As for the "Where", just focus on a place with solid market dynamics where you have a tangible competitive advantage. Land isn't as competitive as Homes but competition exists. You need to break through the noise.

Michael Smythe · Answer

Yes, what is going to be your unique advantage and where can you best apply it?

Where to wholesale land?

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