How to Earn Passive Income Through Land Flipping – With Travis King
I'm not really a big fan of flipping anything.
I flipped three dozen houses early in my real estate career. But couldn't figure out how to turn that into a financial freedom business.
That's why I switched to apartments. And I am convinced that apartments are the number one way to become financially free with real estate.
But Travis King found a way to earn passive income with land flipping.
How does that work?
On this episode of Financial Freedom with Real Estate Investing, Travis joins us to discuss how he finds and finances off-market vacant land deals.
Travis explains how he gets top dollar on land when he sells it, earning a nice return for investors and interest income for himself through seller financing.
Listen in for insight on raising outside money to land bigger deals and learn how long it takes to replace your W-2 income with land flipping!
Key Takeaways
How Travis got into land flipping- Listened to podcasts on commute to W-2
- Looking for asset class other than SFHs
- Go after off-market vacant land properties
- Reach out to landowners with direct mail
- Send generic letter of interest
- Blind offer based on cost per acre in zip code
- Self-funded deals at first but couldn’t scale
- Leverage outside money to target larger deals
- Landscaping or cleanup on residential infill lots
- Subdivide parcels of rural vacant land
- Risks associated with staying in deal too long
- Easier to source to builders and developers
- Earn interest income through seller financing
- Travis quit job on $10,000 per month
- Buy land at 35% to 50% of value
- Ask for 30% to 50% down to get money back
- Flush in 12 to 18 months
- Only limited by how much time you devote
- Typical to replace income in 12 months
- Slow down residential infill lots
- Lean in on rural vacant land, benefit as lender
- Less competition in bigger deals
- Need outside capital or JV partners
