Every loan on our case studies page was a land flip. Buy a parcel under market, resell it at market, keep the spread. It sounds simple, and the mechanics are. The part people get wrong is the buy.
Here is how a land flip works, step by step, with the real numbers from one we funded.
What is land flipping?
Land flipping is buying vacant land below market value and reselling it at market value for a profit.
There is no rehab, no tenants, and no construction. The profit is made on the purchase price. Most land flippers buy from owners who want out fast, like heirs, out of state owners, or people behind on taxes, and resell to buyers who want the land for a home, recreation, or investment.
Found a land flip?
$30K to $1M, 20% down, no appraisal, no points at closing, close in about 7 days. Written quote in 24 hours.
Get a Free QuoteLand Flip FinancingHow do you flip land, step by step?
Find a motivated seller, price the land from comps, check the parcel, fund the buy fast, then resell.
- Find a motivated seller. Owners who need cash quickly will take less than market.
- Price it from recent sales. Pull comparable land sales in the county. Your offer has to leave room for your costs and profit below that number.
- Check the parcel. Legal access, no flood zone, no major wetlands, and a buyer who can actually use it. For our loans the land must be at least 2 acres.
- Close fast. A seller taking a discount wants cash in a week or two. That is why flippers use a hard money loan for land flips.
- Market it where land buyers look. LandWatch, Land and Farm, Lands of America, and Facebook Marketplace.
- Resell for cash or on terms. A cash sale is clean. Owner financing brings more buyers and often a better price.
Takeaway: the profit is locked in on step 2. If you overpay, no marketing will save the flip.
What does it cost to fund a land flip?
On a real Florida flip we funded, the money cost $6,510 for six months.
A borrower found a 5 acre Florida parcel at $72,000, under recent sales, from a seller who needed cash in 10 days. We lent $57,600 at 16% with 20% down and closed in 7 days. The borrower resold it to a retail buyer six months later.
| Florida flip | Amount |
|---|---|
| Purchase price | $72,000 |
| Down payment (20%) | $14,400 |
| Loan | $57,600 at 16%, interest only |
| Interest, 6 months | $4,608 |
| Closing fee | $600 |
| Exit fee (2%) | $1,152 |
| Servicing ($25 x 6 months) | $150 |
| Total cost of the money | $6,510 |
Full details are on the Florida land flip case study. Run your own numbers with the land loan calculator.
How do you finance a land flip?
With a short term land loan that closes in days and is paid off when you resell.
Banks rarely lend on raw land to a flipper, and never in 7 days. We fund up to 65% of value with 20% down, interest only for up to 24 months, with no appraisal. If you own another parcel free and clear, pledge it as cross collateral and we can fund 100% of the price. The full program is on land flip financing.
Should you resell a land flip for cash or with owner financing?
Cash is simpler. Owner financing usually sells faster and for more, and you can still get cash by selling the note.
Most land buyers cannot get a bank loan, so offering terms widens your buyer pool. The catch is you collect payments for years. You do not have to. We buy the note at closing for 80% to 90% of the balance, and that cash pays off the flip loan the same day. See why to offer seller financing from day one and how to price land for seller financing.
What are the most common land flipping mistakes?
Overpaying, skipping due diligence on access and flood zone, and running out of cash for the next deal.
- Paying market price. The spread has to exist on day one.
- No legal access. A landlocked parcel has few buyers.
- Flood zone or wetlands. Buyers find out, and the price drops.
- Pricing above comps when reselling. Land buyers check. See why land does not sell.
- Tying up all your cash. Financing the buy keeps cash free for the next flip.
Frequently Asked Questions
What is land flipping?
Buying vacant land below market value and reselling it at market value for a profit, with no construction or rehab.
How do you flip land?
Find a motivated seller, price the land from recent comparable sales, check access and flood zone, close quickly, then resell for cash or with owner financing.
How much does it cost to finance a land flip?
On a Damen Capital Florida flip, a $57,600 loan at 16% held 6 months cost $6,510: $4,608 interest, $600 closing, a $1,152 exit fee, and $150 servicing.
Can you flip land with no money down?
Yes, if you pledge one other property you own free and clear as cross collateral. Damen Capital can then fund up to 100% of the purchase.