Land Banking and Flipping

Land Banking:
Land banking is a strategic approach in real estate that involves acquiring and holding land for future development or investment purposes. Here are the key points:
- Land banking refers to the practice of purchasing undeveloped or underdeveloped land with the intention of selling it later at a profit.
- It allows developers and investors to secure valuable land early in the development cycle without immediate large capital outlays.
- A land banking partner (often a financial institution or investor) purchases the land on behalf of a builder or develop
- The builder provides a deposit to secure the purchase.
- The builder agrees to a lot takedown schedule, gradually purchasing lots over time.
- If the builder abandons the lot options, the deposit is forfeited.
Flipping Services:
Flipping land involves buying parcels at a low price and selling them at a higher price to generate profits. Here’s what you need to know:
- Identify undervalued land parcels.
- Improve or enhance the land (e.g., rezoning, infrastructure development).
- Market the land strategically to potential buyers.
- Sell the land at a higher price.
Buildty Effect Limited, as a real estate company, can leverage both land banking and flipping services to optimize its operations.