How the Red-Yellow-Green Test Sets You Up for Success with Land Flipping Online

If you’re serious about making money with land flipping online, there’s one crucial step that too many people overlook: picking the right markets. 

The truth is, your success doesn’t start with a mailer, a phone call, or a deal. It starts long before that—with the research and data that help you choose where to invest your time, energy, and money. 

That’s why we created the Red-Yellow-Green Test, a proven system that helps you zero in on the right counties or zip codes to target with your offers. It’s a game-changer for anyone flipping land online, and today I want to show you exactly how it works. 

Please note that for the purposes of being able to explain this in a blog, this is a very scaled-back version of the Red-Green-Yellow Test. 

 

Why Choosing the Right Market Matters in Land Flipping Online 

Most people understand that location matters in real estate. But when it comes to land flipping—especially when you’re doing it online—it’s more than just picking a popular area. 

You’re not buying land to build on. You’re buying land to resell for profit, quickly and efficiently. That means your focus should be on: 

• Areas where land is actively selling 

• Markets with low competition 

• Zip codes where you can acquire property well below market value and resell it without delays 

The Red-Yellow-Green Test helps you identify those markets with precision. And when you’re doing land flipping online, that precision makes all the difference. 

 

What Is the Red-Yellow-Green Test? 

The Red-Yellow-Green Test is a data-driven tool we use inside Land Academy to help our members determine the best (and worst) markets for sending out blind offers. It categorizes potential counties or zip codes as: 

🟢 Green – Strong market with high demand and low competition 
🟡 Yellow – Caution; could go either way depending on other variables 
🔴 Red – Weak market with high inventory and low demand 

It may sound simple, but this test is backed by real data and years of hands-on experience from flipping more than 16,000 land deals ourselves. 

 

The 3 Core Metrics Behind the Test 

While advanced members may use dozens of variables, the foundation of the Red-Yellow-Green Test is built on three powerful indicators: 

1. New Listings to Pending Ratio

This ratio shows how many new properties are coming on the market compared to how many are going pending (under contract). 

🔑 What you want: A low ratio—meaning more properties are going pending than being listed. That means buyers are active, and inventory is moving quickly. 

Example: 

• 50 new listings / 100 pending = 0.5 (Strong market = GREEN) 

• 100 new listings / 25 pending = 4.0 (Weak market = RED) 

This is one of the best indicators of supply vs. demand, and when used correctly, it ensures your land listings won’t sit stagnant for months. 

 

2. Days on Market (DOM)

How long does it take for properties to sell? 

Short DOM = Strong demand 
Long DOM = Buyers are hesitant or non-existent 

We like to see average days on market under 120 days. The shorter the better. If listings are lingering for 6–9 months or longer, it’s a sign the market is sluggish or oversaturated. 

 

3. Active Listings as a Percentage of Total Parcels

This metric compares how many properties are currently for sale vs. how many total land parcels exist in the area. 

Fewer active listings = less competition for you 
More active listings = a crowded market 

Example: 

• 50 active listings in a zip code with 20,000 total properties = 0.25% 
  That’s fantastic. If you list a property there, you’ll stand out. 

But if there are 500 active listings, you might be drowned out—even with a good property. 

 

Putting the Test Into Practice 

Let’s say you’re researching five potential counties to send mail. You run the Red-Yellow-Green Test on all of them and get this: 

County	New List/Pending	DOM	Actives vs Total Parcels	Rating
A	0.6	78	0.2%	Green
B	1.8	130	0.5%	Yellow
C	3.5	200	1.2%	Red
D	0.9	95	0.3%	Green
E	2.4	180	0.9%	Red

From this, you instantly know Counties A and D are strong candidates for land flipping online. You’ll likely get faster sales, fewer headaches, and better margins. 

This is the kind of smart, informed decision-making that separates successful land investors from those who waste money mailing into the wrong areas. 

 

What Makes This Tool So Powerful? 

Here’s why the Red-Yellow-Green Test is one of the most powerful strategies in land flipping online: 

✅ You don’t need to know the area or live nearby 
✅ You can apply this method to any state or zip code 
✅ It reduces risk and guesswork 
✅ It helps you scale faster with more predictable results 

Best of all, this is a repeatable system. Once you get the hang of it, you’ll be able to rinse and repeat across multiple markets—without ever leaving your home. 

 

Final Thoughts: Take the Guesswork Out of Land Flipping Online 

So many people get into land flipping with big dreams… only to get stuck when their first mailer flops. And it almost always comes down to one thing: 

❌ They picked the wrong market. 

With the Red-Yellow-Green Test, you can eliminate that risk. Whether you’re brand new or scaling past your 50th deal, this system keeps your land flipping business focused, data-backed, and profitable. 

If you’re ready to master land flipping online, start by mastering your research—and this tool is the best place to begin. 

Want to learn more? Schedule a free strategy call with our team today.