BROWSE

Land Flip

What is 'Land Flip'

A fraudulent practice in the real estate business of selling undeveloped land at highly inflated prices. A land flip occurs when a group of dishonest buyers trades the land among its members, increasing the price with each transaction. The group will then finally unload the property onto an unsuspecting outside buyer at a price that the buyer will likely never be able to recoup from its own sale of the land.

Explaining 'Land Flip'

Financial institutions face the risk of land flip with any loan made to purchase undeveloped property. They therefore take equity positions by investing directly in the land. Otherwise, they risk taking a loss if the land value decreases.


Further Reading


The savings and loan debacle, financial crime, and the state
www.annualreviews.org [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …

'Like gold with yield': Evolving intersections between farmland and finance'Like gold with yield': Evolving intersections between farmland and finance
www.tandfonline.com [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …

Flip that house: visualising and analysing potential real estate property flipping transactions in a cold local housing market in the United StatesFlip that house: visualising and analysing potential real estate property flipping transactions in a cold local housing market in the United States
www.tandfonline.com [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …

Feasibility Study of Economics and Performance of Solar Photovoltaics at the Kerr McGee Site in Columbus, Mississippi. A Study Prepared in Partnership with the …Feasibility Study of Economics and Performance of Solar Photovoltaics at the Kerr McGee Site in Columbus, Mississippi. A Study Prepared in Partnership with the …
www.osti.gov [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …

Land control and crop booms Land control and crop booms
www.tandfonline.com [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …

The introduction of price signals into land use planning decision-making: a proposalThe introduction of price signals into land use planning decision-making: a proposal
journals.sagepub.com [PDF]
… delineate with more precision the relationship between the state and economic activity and … Investigators and regulators report finding variations of land flips, nominee loans, linked financing, and … up in one instrument many of the opportunities available.” A land flip might provide …



Q&A About Land Flip


Who are wholesalers?

Wholesalers make a profit by signing a contract to purchase a property from a seller and then entering into an agreement with a third party to sell their role of Buyer in the contract to an end Buyer. All rights to the original purchase contract are assigned to the new buyer and the new buyer pays an "assignment fee" to the wholesaler in order to gain all rights to purchase the property at the original purchase price. The original purchase contract usually has an "inspection period" which allows the original buyer to back out of the contract and not close on it if they do not find a buyer to assign their contract to. Many wholesalers have no intention of actually purchasing the property and simply use wholesaling as a tool to locate proper"" buyers for properties that they can flip themselves or sell wholesale again later on down line after they have made some money off them first time around through sales commissions from multiple sales contracts that they get involved with over time while holding onto other properties that they intend on keeping long term as well as investing further into more real estate deals with other people's money who want into this business just like you do too!

Where did most of these flips take place?

In California.

How many houses or condos were flipped in the U.S. in 217?

27,88 houses or condos were flipped in the U.S., which is an 11 year high.

How does a group increase the price of undeveloped property?

The group will trade the land among its members, increasing the price with each transaction.

Why do some financial institutions take equity positions by investing directly in the land?

To avoid taking losses if the value of undeveloped property decreases.

What can be done to prevent this type of fraud from occurring?

Financial institutions can use due diligence to determine whether there has been any previous flipping activity on the property they are considering for purchase.

What is a land flip?

A land flip is a fraudulent practice in the real estate business of selling undeveloped land at highly inflated prices.

Who are some groups that engage in this practice?

Some groups that engage in this practice include dishonest buyers and financial institutions.

What is flipping?

Flipping is a term used primarily in the United States to describe purchasing a revenue-generating asset and quickly reselling (or "flipping") it for profit.

What does flipping mean?

Flipping means buying, rehabbing, and selling properties for profit.