How do you make money flipping land?
What are the pros and cons of investing in land deals as opposed to other kinds of real estate?
Jon Jasniak started flipping land in 2016 when he was 23 years’ old and working as an engineer. After 18 months of doing both, he quit his job to go into the land game full time.
In the last seven years, Jon has done 700 deals across 7,000 acres and built an eight-figure land business. And in early 2023, he bought an entire town in West Texas!
On this episode of Financial Freedom with Real Estate Investing, Jon joins Garrett to explain how he buys land under value, leveraging seller financing or private money to get into deals.
Jon discusses how he reduces friction in his business by subdividing land and selling it to average people without a title company, marketing on sites like Facebook Marketplace and Lands of America.
Listen in for Jon’s experience buying Cornudas, Texas, and learn how he is adding value to the town and making money in the process!
Key Takeaways
How Jon makes money on a land deal
- Reach out to landowner and buy under value
- Subdivide into 5- or 10-acre plots and sell for more
Why landowners are willing to sell under value
- No interest in doing paperwork or marketing to sell
- Broker doing poor job and land not moving
Jon’s approach to doing a small land deal
- Pay cash
- Fund with investor (find on Facebook groups)
Jon’s approach to doing a big land deal
- Prefers seller financing over bank
- 5- to 10-year note with low down payment
How Jon talks landowners into seller financing
- Benefit of monthly cashflow, tax advantages
- Offer 7% interest, option of cash price (20% lower)
How Jon leverages private investors in land deals
- Step into seller’s shoes, seller finance land to him
- 12% to 18% interest but still double money
Who Jon sells subdivided plots of land to
- Average person looking to get out of city
- Sell through Facebook Marketplace or on Land.com
What Jon looks for in a land deal
- Acreage 30 minutes to hour from city
- Good water and access to power
What it looks like to market land
- Drone photos, videos of land shared online
- Low-friction closing process (without title company)
Jon’s experience buying Cornudas, Texas
- Small, unincorporated town in West Texas
- Café, mobile homes and RV park on 28 acres
What inspired Jon to buy Cornudas, Texas
- Wants to be known as go-to person in land
- Motivated seller, bought for less than $500,000
How Jon is adding value to Cornudas, Texas
- Install security system, proper AC
- Add STRs and establish RV park, primitive campsites
- Expand menu at café, sell convenience items
- Connect with Jon Jasniak
Related Articles
Should You Invest in Apartment Buildings or Land?
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Financial Freedom with Real Estate Investing by Michael Blank