Summary of How to Find & Wholesale Vacant Land | Step by Step

Financial Strategies and Market Analyses:

• Pros of Wholesaling Vacant Land:
  • Less Emotional Transactions: Sellers are less emotionally attached to land than homes, allowing for quicker decision-making.
  • Faster Process: The valuation of land is simpler and faster compared to single-family homes, which require more detailed appraisals.
  • Ideal for Virtual Wholesaling: Wholesalers can operate in multiple markets without needing local presence.
  • No Inspections or Appraisals: This simplifies the process and speeds up transactions.
  • Easier Exit from Contracts: Sellers are less likely to experience trauma from failed deals, making it easier to exit contracts.
• Cons of Wholesaling Vacant Land:
  • Difficult to Comp: There is less data available for accurately valuing vacant land.
  • Focus on Cash Buyers: Wholesalers must prioritize finding cash buyers rather than just motivated sellers.
  • Smaller Profits: Initial profits may be smaller, requiring volume and consistency to achieve significant earnings.
  • Higher Fallout Rates: There is a higher chance that contracts will not close, necessitating a larger number of contracts to secure deals.

Methodology for Wholesaling Vacant Land:

• Locate Demand:
  • Use tools like ListREI.com and CoreLogic to identify areas with high demand for vacant land.
  • Analyze population density and property values to ensure there is a market for the land.
• Build a Cash Buyers List:
  • Identify and connect with cash buyers who are actively purchasing vacant land.
  • Understand their price points and preferences to tailor offers accordingly.
• Make Offers:
  • Use the "Go for No" strategy: start with a low offer to initiate negotiation, allowing room for counter-offers.
  • Understand that cash buyers dictate the value of the land, not software or appraisals.
• Contract Terms:
  • Keep deposits low (typically $100 to $500).
  • Request longer inspection periods (60-90 days) and closing timelines (90 days).
  • Ensure contracts are flexible to accommodate market dynamics.

Key Takeaways:

• Wholesaling Vacant Land can be a lucrative niche with less competition and emotional baggage compared to single-family homes.
• Success in this field requires a focus on data, demand, and building relationships with cash buyers.
• Consistency and volume are crucial for achieving significant profits.

Presenters/Sources:

• Rick Ginn
• Flip with Rick YouTube Channel
• freehwholesaling.com

Notable Quotes

— 03:00 — « If you've ever dove into things that just never made you any money, if somebody told you the pros and cons before you did it, it would have been a much easier way to evaluate if it was a good deal. »

— 06:17 — « No inspections, no appraisals, which once again loops back around to why it is so much faster. »

— 07:12 — « You don't get all the baggage that comes with that. »

— 11:28 — « When it comes to vacant land, nine times out of ten they just look at what their initial investment was. »

— 12:00 — « You have the opposite problem; people having single family homes, everybody's got data and they all make decisions based on what software tells them. »

Category

Business and Finance

Video