Is it advisable to wholesale land using assignments?

Question

Hey everyone, I am a wholesaler from NC, it is completely legal in my state, my partner and I have closed deals using assignments. My question is would it be advisable to get an 18 acre parcel of land under contract and then assign it over to a developer? Our contracts state 30 days or less, and I understand that many people who develop land have a lot of issues on thier end to deal with before ever purchasing land, for this reason the land sits and is harder to move than a typical piece of real estate. Would you advise outright purchasing the land and then reselling it at a later date? We only ever do assignments, but I know that it takes quite a while to sell land (less interested parties, lots of legal, strategic, zoning issues on the devs end). What have your experiences been with wholesaling land?

Greg Dickerson · Answer

You are correct wholesaling development land is difficult and takes way more time as a developer will want to take the land through the entitlement process before closing unless it’s a really competitive market  and highly sought after piece of property.

If it’s cheap you could try to flip to an investor or hold onto it until you can find a developer willing to take though the entitlement process.

Mahmoud Y. Elhalawany · Answer

Yeah that's what I was thinking too, hold it and then sell it at a later date if the the seller is willing to come down on price a little. Thanks so much Greg!