For sure, you’ve heard about the enterprise of flipping houses. It’s a rather popular way of making a profit in real estate. House flippers purchase a home, make improvements on it, and sell it for a price higher than the amount they bought it. The duration of the sale should – ideally – take no more than a year.
Besides flipping houses, did you know that you can also flip vacant land? Yes, flipping vacant land can also be an excellent way to make money. If you want to learn how to make money by flipping vacant lots, read these tips below.
Find Affordable Vacant Land
Nowadays, it’s fairly easy to look for low-priced vacant land that you can resell for a profit. And, of course, we should be grateful for the internet for that!
Although you can now find affordable land with less hassle, it’s still crucial to know what type of vacant lots you want to purchase. In this way, you can utilize the right platforms and tools that can help you find the type of land you’re searching for.
While there are listing sites that offer general land type selection to buyers, there are platforms that provide a more specific catalog. For instance, some online listing websites cater to buyers of recreational land, farmland, residential land, or commercial land.
Moreover, you can visit websites and social media pages that catalog off-market vacant lots or those properties that aren’t advertised publicly. Real estate builders, contractors, individual realtors, and real estate auction houses have more knowledge about off-market properties. So, make sure to go to their websites or follow their social media pages.
Off-market vacant lots are way cheaper than those properties that are publicly advertised. Therefore, they’re great for land flippers who want to make more money.
Buy Only Verified Land
Land disputes become more common when the land market is at its peak. Kudos to those people who acquire property free of any legal disputes since that would be a no-small achievement nowadays.
However, there are several ways to prevent yourself from getting into a legal mire when purchasing vacant land. One way is to ensure that the land title is genuine and has no legal problems whatsoever. For land buyers who want to resell the property they just bought, confirming the authenticity of the land title is a must.
It’s also crucial to obtain an encumbrance certificate to ensure that the property doesn’t have an uncleared loan or pending mortgage. Asking the previous property owner for tax slips is another essential tip since tax slips are proof that the land in question is registered legally.
Selling legally verified vacant land is a lot easier because buyers will prefer it over a property with legal issues tied to it.
Entitle Land for its Highest Use with the Help of an Expeditor/Architect
It’s essential to entitle the land for its highest use after purchasing it. In such a case, you want to get the services of an architect or expeditor. By this process, you can determine the best potential of the property in terms of its development per land use and local zoning laws.
Furthermore, it’s one way of knowing the value of the land and how financially feasible it will be when building on it or developing it. Thus, it’s time to hire an architect or expeditor to entitle your land for its best use.
Make Some Improvements
Land buyers will get attracted to a vacant lot that underwent essential improvements. If you’re the property owner, making improvements on your land isn’t so hard a task to tackle.
You can make the property look presentable by cleaning up its premises and surroundings. Get rid of the trash, fallen leaves, tree branches, debris, and other clutter. You can also trim the grass and plants and cut back the weeds.
For areas where there’s soil erosion or uneven surfaces, you can fill them up with soil. It’s also crucial to fix damaged fences and gates.
Buyers might also want to see plants, flowers, and trees on the property. So, make sure to have and organize them in a way that’s pleasing to the eyes.
List the Land for Sale
Pricing the land according to what it’s worth is crucial. You can work with a realtor or hire an appraiser to know the market value of your property. It’s recommended to have multiple appraisals on your land.
You should list the property on multiple listing sites. Make sure to write an awesome and honest description of it. Also, don’t forget to include professional photos because they can help persuade buyers to purchase your property.
Flipping vacant land can be an excellent way to make money. However, you should learn how to increase your chance of success in this enterprise and maximize your profits. Make sure to take note of the tips mentioned in this article for that purpose.