Online Land Flipping Business with Proprietary Tech Stack – Generating 52K Per Deal and 135% ROI
An online Real Estate Investment Company (REIT) providing affordable land ownership to people across the USA. The company is a high-profit, turnkey, land-flipping business that buys and sells high-value rural vacant land. Established nearly five years, the business has built a strong reputation with buyers and sellers and can be grown tremendously from where it is today.
OPERATIONS
The business is managed by two industry professionals but can easily be trained for a smooth transition. The instantaneous scalable system includes outsourced, trained professionals covering nearly every part of the business. Operations are entirely online and focus on finding deeply discounted land deals and selling for cash.
Once a property is under contract, the company contacts the title company that handles the closing. The management of properties is handled by a team dedicated to various tasks, such as running comparable sales analyses to review incoming leads, filing necessary documents with the county, creating marketing material, and updating property pricing.
MARKETING AND KEY METRICS
The acquisition process is driven by sending out offers via direct mail every week and giving property owners three weeks to reply. Both partners have dedicated sides of the business to handle daily operations. Mailing lists are created approximately once a month and are automated to be sent every week. About 3,000 letters are dispatched weekly. The team has not used digital marketing to find sellers and advertise for buyers via MLS, Lands of America, Facebook, and Craigslist.
Outgoing letters allow for a continued deal flow on an ongoing basis, and increased digital marketing could generate an increased flow of buyers with similar interests. The business has the opportunity to grow through frequent mailings, targeting new areas for property acquisition, and expanding the team to handle more deals.
The team focuses on high-profit land deals that can be simultaneously closed in cash for more than 100% return and a minimum of $20,000 net. The business generates $52k per deal (135% ROI).
Typical customers include both buyers and sellers. Sellers are typically motivated to sell because they no longer want the property for various reasons, such as having owned it for many years and not using it anymore, an unwanted inheritance, or the burden of paying taxes. Buyers are motivated by receiving a great price. The land is typically listed for 75% of retail value for a quick sale.
BUSINESS MODEL & RESOURCES NEEDED
One executive assistant works with management. This employee’s duties can easily be transferred to another assistant or the new business owner. The position could be made full-time to oversee and handle most day-to-day tasks. Sales, customer service, due diligence, and marketing are all outsourced.
THE INDUSTRY
The company is classified in the real estate industry, specifically in land sales/redevelopment. This company focused on buying and selling high-value rural vacant land, targeting motivated property owners, and buyers who are search of a great investment at a discounted price. Its non-competitive niche includes larger, more valuable lots than competitors, generating large returns on investment.
OPPORTUNITIES TO SCALE
Scaling up could involve growing into new geographic areas or expanding the team to cover a larger volume of deals with better marketing. Alternatively, development projects could be initiated on properties acquired by the company or it could look into larger-scale commercial properties. The company will help the new owner streamline processes, with added coaching available.
Asking Price: $1,752,000
Gross Income: $1,120,066
Cash Flow: $500,650
Year Established: 2017
Employees: 1
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