Can I wholesale Land

Question

Hello I just received a call from my Direct Mail campaign. The property is for land not a single family home. I do not know anything about land, although I am pretty sure its somewhat the same process. My question is how do I analyze Land to determine a value. Do I use comps etc?

Tim G. · Answer

You sure can, its a more challenging process.

I wholesaled a lot last year, I should have closed on it myself and just listed it. My buyer did that and made a killing on top of the $25k I made.

Evan Miller · Answer

Thank you Jon I appreciate the feedback.

Jon H. · Answer

@Evan Miller  Yes, you can wholesale vacant land.  It is a bit of a different process.  One that can reap a much higher return if done properly.  Check with your local building office for the following details.  What is the property zoned for? Are there any wetlands environmental concerns.  Is the property large enough for its zoned purpose.  Is sewer in the area?  If it's on septic what type of system do they require?  Walk the land and check what type of trees, wildlife are on it (possibly change whether it's build-able).  Do as much free research upfront.  Have a few month feasibility-it takes time to hear back from the building agencies.  Get as much done as quickly as you can.  If all is good bring in your buyer.  This is where you need get your buis done quickly.  The next buyer will also want to verify before closing.  Unless of course you have screaming deal...

There are many other factors you will need to look into.  Too many to list here.  If it's single family residence what is cost of new construction, what is your competition selling for?  Are utilities close by?  What type of utilities? Is gas available?  How much $ are utility connection fees and permit fees? Go through and get a cost estimate which will in turn give you a value of the land :)  This should get you started