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.