I have always been intrigued by the possibility of owning real estate. I often dream of owning rental properties as a way to setup recurring revenue streams. Several years ago, I had a plan to start out small by purchasing a single rental unit and then expanding out. Eventually I would hire a property manager to run the show and maintain all of my rental units, while I went on to my next task.
Unfortunately (or maybe fortunately), there were a few things holding me back from making the move into the real estate market. Time, money, and a complete lack of understanding of owning a rental property are all reasons why I have never purchased any. I guess it is probably important to have some experience managing rental units before wasting a bunch of money!
Just because I have decided to put off owning rental properties doesn’t mean I can’t have my own piece of real estate. It is just a little different kind is all. Owning internet real estate has several advantages over traditional real estate. Here are 3 reasons why I think owning a piece of the internet is a better opportunity.
3 Reasons to Invest in Internet Real Estate
- Low Cost – The barriers to entry to owning internet real estate are incredibly low compared to owning actual real estate. You can purchase your own domain name for under $10. There are some other fees involved like hosting, but overall the costs are incredibly low. There are also many opportunities to buy existing websites, usually ranging from a hundred to a few thousand dollars.
- Return on Investment – For the most part, if you own real estate, then a double digit gain on your investment is a great return for one year. A piece of internet real estate on the other hand, has the potential to earn a double digit return in the first month. There are valid exceptions to this, but overall internet real estate can provide a much greater return than investing in traditional real estate properties.
- Quicker Learning Curve – This may not be the case for everyone, but managing a website seems to be less of hassle than owning real estate. It is much easier for an entrepreneur to come in and learn how to run a website compared with running a rental property. It is also much cheaper to learn how to run websites than managing real estate properties.
Flipping Websites
Most people have heard about flipping houses, but did you know that you can also make lots of money buying and selling websites? It is true and there are people making tons of income from doing just that. It is not as easy as it sounds, but if you are willing to put in some hard work and due diligence, there is the potential for huge returns.
Eventually I will probably start looking to purchase some run down websites that have potential with the thought of “flipping” them. However, for right now I prefer to build my own sites from scratch so I can learn. Even if I create a new site that is a flop (which I have had several), I can learn from my mistakes so they don’t happen again.
Whether you decide to start flipping internet websites for a profit, or setting them up as long term passive income earners, internet real estate has enormous potential. If you are willing to put in some sweat equity and are patient, then the sky is the limit!
Internet Real Estate Resource
If you are interested in buying your own piece of the internet, then be sure to check out this great resource.
- How To Invest In Websites In Your Spare Time
- How to Buy Internet Real Estate on Sale
- Researching Foreclosure Information as a New Income Stream
- How to Make Your Own Blog – Introduction
- 18 Passive Income Opportunities to use your Tax Refund on
- How to Make Your Own Blog – Choosing a Domain
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This is a great article….the barriers to entry are almost non existent. For $10/year you can purchase your domain and for ~$6/month you can buy hosting for unlimited websites. If you can build a site that brings in traffic, you can convert some to clicks. Rinse and repeat
@Captain eHow – Thanks! I actually just picked up a new .com domain name yesterday from GoDaddy for $1.99 and will pay less than $4.99 per month to have it hosted. I will be sure to make updates about this test very soon.
I certainly agree with these points. I’ve recently sold my 11th site on Flippa.com and I absolutely love flipping! But so far these are all sites I’ve built from scratch, I’d love to buy some sites, do them up, then sell them on for profit.