Web sites & the virtual real estate market.
Saturday, July 19th, 2008“The market is so bad, the rates are so high” is what you hear on the news. Investors are looking all over to find property that can yield a great return, In comes domain real estate. There are plenty of folks who owned personal sites for 7 to 10 years that have sold them for close to 10 million dollars. Recently I stumbled upon this site Tooth.net and I said to myself wow what an awful looking site, but looks can be deceiving. Turns out this site is being sold for 15k to an internet investor. The owner had this site created in 1998, the cost for this site ( the down payment ) was $200 dollars and the hosting ( mortgage ) was $20 per year. The investor is no fool, he knows that this site has a premium 1 word domain ( prime location in the wealthy part of town ) and with some programming this can become a dental directory where he can get millions of users to visit and later sell the website to Colgate or Crest for 500k to 1million. So I take my investigation even further and I find out there is actual domain mortgage companies that will lend you money to buy a premium domain.
How much do you think color.com is? Well is for sale for 50k on sedo. I can’t afford it but if I could I would buy it today. (more…)



