How to Flip Land in New Mexico?

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How to Flip Land in New Mexico?

Bart Waldon

With over 77 million acres of sprawling countryside blanketing New Mexico, robust real estate markets persist today in both the southern growth corridors approaching El Paso and the state’s heartland peppered by oil rich Permian Basin locales. As investors continually seek leveraged plays on surging millennial migration patterns and energy production lifecycles, vacant land flip opportunities abound for informed speculators.

This guide shares proven methods securing properties positioned benefiting from projected infrastructure or policy tailwinds - then promptly relisting enhanced assets improved through entitlements processes, site plans or marketing materials development adding value for secondary buyers. Patience and intentional due diligence sets apart successful flip pursuits from shortsighted speculation.

Target Parcels Already Zoned for Intended Use

Instead of attempting wholesale land use designation changes through lengthy permitting battles, cherry pick sites in municipalities where existing zoning classifications already clearly allow imminent development plans upon sale. Confirm possibilities researching parameters including:

  • Residential Density Allotments - If flipping for home builders, ensure acreages sufficiently accommodate division capabilities without choking densities buyers demand.
  • Commercial Allowances - Industrial uses in approved zones raise appraisals like warehousing capabilities strategically situated feeding distribution hubs.
  • Renewable Energy Viability - States continually update renewable utility incentives by geographic regional utility zones that boost land energy production desirability.

While rezonings remain possible electing patience through hearings, directly target acquisitions fitting ‘highest and best’ utilization assumptions upfront avoiding guesswork demanding premiums later.

Verify Ownership & Title Standing

During property selections, fully investigate ownership histories like:

  • Title Transfer Chain – Validates no disputes exist over rights leveraged ensuring clean title conveyance abilities down the road.
  • Tax Status – No outstanding balances due signaling motivated distress sales unless deliberate.
  • Liens & Judgments – Cleared financial obligations on both land and current owner.
  • Mineral Rights – Severed subsurface detachments get disclosed upfront through separate leases if previously sold.

While physical land traits always garner attention, learning properties’ financial ancestry through public records provides critical backstories impacting bids. What appears as diamonds hiding could contain undisclosed baggage sinking deals. Verify before acquiring.

Fund Projects Securely

Sophisticated flip investors enjoy access to diverse project financing instruments beyond conventional mortgages also including:

  • Hard Money Loans – Asset based lending with faster approvals, but higher rates and fees using properties themselves as collateral.
  • Crowdfunding – Syndicates of private lenders or peer-to-peer networks offering fixed term loans funded by pools of individuals often with higher returns.
  • Partnership Interests – Avoiding bank debt entirely, joint venture partners supply project capital for share of secured profits later upon sales.

Each structure carries unique tradeoffs between expediency, cost, risk tolerance and control. Weigh options mindful that prompt access to liquidity purchasing properties often catalyzes successful flips through bidding advantages.

Account for Improvement Costs

Beyond purchase prices, significant ancillary costs accompany development value-adding land flip processes - whether physical or administrative like:

  • Site Clearing, Grading & Stabilization – Transforming overgrown sites into graded, vegetative-free building pads buyers seek.
  • Road/Driveway Access – Extending public transportation infrastructure onto properties if lacking already.
  • Amenities – Landscaping, signage, gating, lighting or storage additions commanding premiums.
  • Design Allowances & Fees – Ensuring project works stay within permitted use parameters through zoning stipulations.
  • Professional Fees – Surveyors, architects, engineers, inspectors and legal teams carry bills too tallying quickly.
  • Tax Reserves & Carrying Costs – Covering immediate tax liabilities and ongoing ownership overhead through sales.

Adequately budget for both hard and soft enhancement costs crafting profitable turnkey offerings without cutting corners skimping on vital steps sabotaging credibility. Think holistically outlining total time and cash completing, then double contingencies given inevitable overruns.

Time Exit Strategies

While fix and flip television shows greatly glamorize fast returns acquiring properties and selling them instantly after injection of supposed magic buyer catnip, pure land speculation hardly proves so expedient even in booming areas - with projects requiring between six months to several years completing by:

  • Monitoring Permitting Trends – Site plans working through approval processes signal forthcoming inventory boosts impacting prevailing selling opportunities.
  • Analyzing Comparables – Sale prices both achieved and failed reveal neighborhood or zoned land maximum supportable pricing thresholds to avoid overshooting demand.
  • Charting Value Cycles – New development hype inevitably declines when capacity gets overbuilt - smart flippers sense peaks nearing before drop-offs balancing greed against risks holding too long.
  • Cultivating Buyer Relationships – Leverage experienced developer ties providing insider visibility on submarket supply/demand changes ahead of public forecasts flagging optimal offer timing.

While greater effort goes unrewarded long holding land, premature panic equally erodes profit potentials giving back gains failing to exercise patience fortifying positions before departing.

Here at Land Boss, we constantly track the very New Mexican land development market conditions and pricing changes guiding investors recognizing when windows open for those ready to seize discounted plays then add value engineering flips timed capitalizing on growth spurts unfolding across regions. Tap into our real-time data intelligence as a free resource helping inform your real estate deal decision calculations today!

Final Thoughts

With immense rural acreage spanning New Mexico's oil fields and booming metro outskirts, abundant land flip opportunities exist for informed investors targeting properties well-positioned to benefit from projected development demand upticks. Though rewards loom large when executed prudently, uncontrolled speculation risks market-timing errors and negative cash flows from improvement costs exceeding budget. Carefully verify ownership histories, zone designations and infrastructure statuses upfront identifying parcels primed for value boosts through modest entitlement efforts over 6-12 month holds. Here at Land Boss, we track the very conditions and pricing shifts guiding investors recognizing when the time is right to acquire discounted positions for bullish near-term flips across New Mexico's diverse regions. Contact us directly to discuss deals!

Frequently Asked Questions (FAQs)

How much additional property value can investors reasonably expect adding entitlements like site plans or zoning variances when flipping land?

Typical uplifts range from 20% to 30% boosts over raw land values depending on development rights secured. However, costs incurred also factor significantly shaping final profit spreads.

What types of properties generally make the best candidates to target when attempting land flips?

Parcels already zoned for intended use functions rather than requiring lengthy rezoning efforts provide best flip upside. Sites usable for both residential and commercial builds also enable flexibility adding value.

What carrying costs do land flip project investors need budgeting for while owning properties?

Typical expenses tally taxes, insurance, maintenance/security, interest payments on debt financing, plus added utilities or liability costs depending on the property. Budget conservatively anticipating some vacancy drag before sales too.

What market indicators signal the best times attempting to sell investment land flips?

Leading clues involve tracking new permitting levels, construction milestone completions, demographical shifts, comparables routinely hitting asking prices, bidding war reports and open house attendance upticks confirming buyer demand accelerations.

How much capital liquidity reserves would you recommend having before attempting first land flips?

Conservatively target 20% added contingency cushions above total projected acquisition, improvement estimates and carry cost funds sequenced over likely 8-12 month project durations as initial buffer funds allowing flexibility handling surprises.

What happens if investors attempt land flips that fail selling before required hold periods?

Without sufficient operational reserves set aside allowing development obstacles navigations or cycle timing mistakes, forced exits generally compel accepting significant lowball offers or even outright fire sales dumping assets simply recovering some leftover capital before dissolvement. Plan ahead avoiding desperation repositioning scenarios!

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.


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