Buying and selling land is not the same as flipping houses, but for the right investor it can definitely be a profitable undertaking. In some ways it’s much easier than buying and selling homes, but it can also be more difficult if you don’t know what you’re getting into. Provided you understand the potential pitfalls, however, you should be able to make a pretty penny buying and selling land. Here are a few common mistakes you’ll want to avoid in the process.
Overspending. This is a major problem for people that have never engaged in the process of buying and selling land for profit. And the only real way to avoid this mistake without losing your shirt in the process is to take your time, do your homework, and learn what makes land potentially profitable. Like buying a home, location is important. But you also need to pay attention to factors like construction and growth in an area, zoning, and prior land use. If you’re looking at a great deal and you discover that the land is cheap because it was formerly used as a petrochemical dump site, you might want to consider looking elsewhere.