What discount should I buy land at?
Experienced flippers offer 25–50% of comparable sold value on unimproved lots. The discount funds the marketing, holding time and the risk that access or zoning limits use.
Model a raw land flip end to end: acquisition, closing, back taxes, holding costs, marketing and exit price — including seller-financed exits.
Net profit = sale price − purchase price − closing costs − back taxes − holding costs (months × monthly) − marketing − commission. ROI = net profit ÷ cash invested × 100.
Buy a parcel for $8,000 with $1,200 closing, $600 of holding costs and $900 of marketing, then sell at $24,000 with 6% commission ($1,440). Net profit is $11,860 — a 113% cash-on-cash return.
Experienced flippers offer 25–50% of comparable sold value on unimproved lots. The discount funds the marketing, holding time and the risk that access or zoning limits use.
Typically 3–9 months for a cash exit. Budget holding costs — property tax, POA dues and mowing — for at least six months rather than the best case.
It raises total proceeds substantially (often 1.5–2× the cash price) via interest, but delays capital recovery and adds servicing and default risk. Many investors mix both to stay liquid.