An old 238,000 MANA, (80 ETH), Land Flip Case Study | 15 Land Estate!
Posted On December 30, 2019
This Decentraland flip Case Study was written and conducted in October 2018. Current market conditions may have changed including what lands are valued at.
I should really do more of these so people can understand the mindset behind land flipping.
Around 7 days ago I bought the below 15 lands for 275,000 MANA in a private deal on Decentraland.
I’m going to go through the whole deal in this blog post from the point of first contact to closing the deal and of-course eventually selling the estate.
Also my mindset behind the flip and how or why I thought it would be profitable when I purchased them.
Current Land Market Conditions
In the last month or so there has been HEAVY land buying volume in Decentraland.
Large investors have made it clear that their eyes are on estates.
What are Estates?
Basically lands clustered together.
Adjacent land parcels increase your build height limit not to mention giving you a much larger area to build something on.
There have been some estates that have sold for a LOT higher than what their individual counterparts would have sold for.
In this case we had a beautiful 15 land estate giving a build height limit of 80m as opposed to 20m, (single parcels).
Situated between two districts, connected to both of them.
If you zoom out, this location is actually in the midst of a LOT of district activity.
A 15 land size district is pretty good. Considering each land gives you 10m x 10m in build length/width, this 15 land area is about 30m x 50m in length and width.
How much would I buy these for?
There has been a lot of land sold in this area for about 20-25k MANA each, (single parcels), so if I could get these around 20k MANA, I should be able to make some money.
I should be able to sell them for 25k+, (at the very least especially as they’re an estate).
The first point of contact happens on 09/19/2018,
JJ gets in contact with me and pitches me these lands he is selling on behalf of another member. So he’s the middle man conducting the deal.
JJ is a regular member and I’ve bought land from him before so I know security and risk in land stealing is not an issue.
It was first pitched to me at 400k MANA.
This values each parcel at 26.6k MANA each.
Hmm…not quite as much as I wanted. So I countered with a fairly low offer. Just under the cheapest lands available on the marketplace.
It’s an ‘instant no’ so we discontinue the conversation.
Then, around 5 days later I up my offer quite a lot.
Hmm ok another ‘no’.
But with time I feel that sellers are more likely to come lower and lower so again, I part ways and note down to check up again later..
Then a few days later he messages again, this time there’s movement!
At this stage I know the seller is willing to negotiate so I stay firm but budge a little.
And Bam! It’s a deal!
We then proceed to do the transfer in portions. I send around 90k mana, he sends 5 parcels, and we keep going till the whole deal is done.
It’s risky but out of the 100’s of deals I’ve done so far, I haven’t been scammed once! And this is JJ, a regular member I’ve conducted private deals with before.
I send 270k to the seller and give JJ a 5k commission tip for the referral and I’m the proud owner of a beautiful 15 land estate.
Selling is the hard part for most people.
A lot of newbie land flippers will price REALLY high which will just keep them waiting for months for any interest. They wait for a big payout but realistically it hardly happens.
My style is a little different.
Flip fast and re-invest.
I started with 300k MANA in Decentraland. I’ve flipped so much land I’ve more than 10x’d that investment, (crazy right!?)
The only way I’ve been able to do that is the sole fact that I price well, cash out fast and reinvest with bigger deals.
So I had it in my mind that at worst case scenario I should be able to sell these for at least 20k mana each.
That would be 300k MANA sell price, (25k MANA profit), not juicy enough..
So I listed it at 39k for the district connection parcels and 33k for the other 12.
This was quite high but I knew if the right buyer sees it, I’ll get the sale and land volume has been great lately.
I waited about a week with no bites or interest. Another week of this and I would have lowered it to 27k each but around 2 days ago I sold them all!
For a total sale amount of 513,000 MANA.
~ 80 Eth
~ $18,500, (@ MANA = $0.078).
Pretty good for a week!
Maybe 3 hours total work time?
But of course I’ve spent countless hours keeping up with the market of the months to spot opportunity in something like this.
You’re probably still trying to understand WHY people are spending so much on seemingly small pixels on a screen. These pixels represent 16x16m lands you can eventually enter in virtual reality and build anything on.