How To Invest in Land And Make Money
So how can you invest in land and make lots of money? I'm going to share several strategies you can use. But before I get into those strategies, check out my new video series that can help you buy land super cheap. There are over twenty videos full of insider information on land investing. You’ll learn how to assess land value properly, how to pick great markets, how to get funding, and much, much more.
Decide Where You Want To Start
Let's dive into this here. Land investing in the simplest form is buying property super cheap and then flipping it for more than what you paid. We all know this game. This is the easiest way to get started. There are other strategies too, like seller financing, rent to owns, and even owning glamping-type setups—but that's a whole other subject. Let’s start with buying land really, really cheap, and then profiting. So first things first, you need to pick an area, any area within the U.S. This works everywhere, but certain areas will be more competitive than others. You just have to decide how you're going to get this property cheap. So let's say you decided on Hudspeth County, Texas. We're going to start on the platforms. We want to see what land is actually selling for in Hudspeth County. Go to Zillow first and see if you can find any listings there. This is a pretty off-grid part of Texas, but I know you can get land ridiculously cheap there. So if Zillow doesn't have listings, move to sites like LandWatch or Land and Farm and put this county into the search bar. Then take out pen and paper and write down how much each listing is going for—meaning if you see five acres in Hudspeth County listed for such and such amount on this platform, then we make a note. Write down everything what the exit price is on all these properties.
Make Smart Offers
Once we have determined the exit price, we need to make offers. We want to get these properties really, really, cheap and flip them for a profit. The best way to go about doing this is through direct mail offers. There are countless strategies for direct mail. I have several videos showing exactly how to do these other strategies, but let’s keep it simple for now. Let's just say ten-acre lots in Hudspeth County, Texas, are selling for $7,500. So if our exit price is $7,500, we want to buy these for anywhere from $2,000-$3,000, somewhere in there. We need enough wiggle room to flip these for profit. We’re going to use a company like offers2owners.com. I'm not an affiliate for them, but I use them a lot. Reach out to the direct mail company and say you’re looking to send offers to people that own property in Hudspeth County, Texas. They have to live outside the state of Texas because this converts much better than people that live in the state where they own the property. You also want off-grid properties to target all the ten-acre lots that these people own. So we're going to send everybody an offer of $2,000. Order a thousand mailers and see what happens.
Basically, what we're doing here is we're paying offers2owners to pull all this data for us and do the leg work. They will send out all the offer letters saying, “Hey, I’m Michael Alder from Land Flipping such and such. I want to purchase your property. I'll pay you $2,000, including all the fees. If you’re interested, simply sign this contract, and send it back to me. I will forward it to my title company, and they will give you your funds and transfer the property to me. Obviously, there's some paperwork back and forth, but that's how it works. So just to backtrack for some details—you mail out a thousand of these and let's say three people say yes. A thousand mailers are going to cost you $1,000. If three people say yes, you're getting three properties at $2,000 a pop, so you're all in for $7,000. Now, if our exit price is $7,000 on these and we flip all three, it will be $21,000. That's before fees, and things like that, so let's just call it $15,000. We're selling aggressively, and we're selling cheap. Our initial investment was $7,000, and we flipped three properties for $15,000, making $8,000. When it’s all said and done not a bad turnaround, especially for a minimal investment.
Time To Flip
Now you may be saying, whoa, whoa, how do I even flip these things? The same place you go to find the value of these properties is where you're going to list your property. You'll create a fantastic description of the property. You should list all the amenities in the area, describe why people want to own property, and your contact information. When they reach out and say they love your property and absolutely want to purchase it, fantastic. You're going to send them a purchase agreement. Go ahead and use the same title company that transferred it to you because they have all the data already. It's going to be that much easier. They're going to take the payment from your potential buyer, and you're going to sign off. Then they're going to do the transfer, they're going to wire you the funds, and you are on to the next deal.
Wrapping Up
Hopefully, you love this enough that you're going to rinse and repeat. Order more mailers, take down more properties, and keep building your business. There are many ways to invest in land, but stick to the basics, keep things simple, boom. You’ll have a ton of nice, easy deals. That's how you make money flipping land.
Check out my YouTube channel if you’re interested in more land investing tips. Also, if you have any questions about the land investing business and need some coaching, shoot me an email at michaelalder34@gmail.com or check out landflippingmichael.com. Then, we can see if we are a right fit for each other and lock you in for a coaching call.
