Bryan Nazor Explains How ‘Land Flipping’ Is Riskier Than House Flipping
The rise in popular home-flipping shows prompted more than a few entrepreneurs to try their hand at updating and reselling sometimes blighted properties. But one of the things that Bryan Nazor advises upstart flippers to consider is starting small. As an experienced real estate professional, Bryan Nazor has seen everyday people succeed and lose their shirt in the flipping industry. So-called ‘land flipping’ ranks among the best ways to gain first-hand knowledge without taking a significant risk.
Professional Investment Strategies Bryan Nazor Wants You To Know
It may come as something of a surprise, but developers typically keep their options open after acquiring land. Some of the veteran builders Bryan Nazor has watched make top profits by securing tracts of land to create entire neighborhoods. But after rough land has been cleared of unhealthy trees and brush, it’s not uncommon to resell lots for a quick profit.
Although those not necessarily in the real estate sector may believe developers build on every parcel, Bryan Nazor has seen experienced business leaders exercise flexibility and make money whenever possible. The golden nugget we can all take away from top professionals is that remaining open to revenue pathways is vital to success.
Bryan Nazor Advises Beginners To Consider Pros & Cons
Part of the television excitement about home-flipping shows is the risk factor. Each episode typically keeps you on the edge of your seat wondering whether the investor will earn big money or suffer a loss. While that makes good reality TV, flipping should not be associated with unnecessary risk-taking. Because land flipping usually requires a lower purchase investment and upgrade costs, you can minimize risk. These are things that Bryan Nazor wants you to consider.
- Purchase: Because land buys are far less expensive than existing structures, you can pay cash and avoid monthly interest and ongoing payouts. One of the key issues that trips up house flippers is lost revenue when a home doesn’t move quickly. Buy cash, sell for cash.
- Investment Costs: Upstart flippers can purchase an overgrown lot and contract with a commercial landscaping outfit to clear it. Once cleared, you can put it back on the market for a profit. Your cash and clearing costs are your only investments to this point.
- Added Value: A property that does not move relatively quickly may require further investment. Adding a septic system and/or water hookup often proves attractive to home builders. Bryan Nazor expects these costs are typically far less than a full renovation.
- Landscaping: Many cleared properties move well. But the value of curbside appeal cannot be understated. Consider planting grass to attract buyers. There’s something about a lush green lawn that opens checkbooks.
Regardless of whether a parcel sells quickly or sits on the market for a while, it’s essential to understand you’re not overextending yourself. As a real estate professional, Bryan Nazor urges beginners to err on the side of caution. It’s also in your best interest to work with a real estate professional when starting a new venture.