The following is an article from Ryan Moran! Sign up for his free report or click here for more information after you've read this article!
As the government continues to slam the door in their faces, investors and entrepreneurs struggle to find new ways to make money in real estate. Many are finding their ideal alternative in a spot that young business owners and savvy entrepreneurs have been using for years – the World Wide Web.
While traditional real estate markets are slumping, virtual real estate is just beginning to heat up as entrepreneurs buy, develop, and sell websites. Here are a few reasons why buying and selling websites serves as a better alternative to traditional real estate investing:
1) Websites Have Higher ROI Than Real Estate Investments
Real estate investors settle for measly 5% returns, while websites average 80% – 200%.
Real estate investors settle for measly 5% returns, while websites average 80% – 200%.
Many real estate investors buy houses so that they can become landlords and rent out the property. In doing so, they often earn $200 – $300 per month after all expenses are paid, and they pay down the mortgage over time. On a $150,000 house, this is an annual 2% ROI.
The problem with this is that it takes at least 10 properties to replace the income from one’s job. And while there is the added benefit of depreciation, they also come with leaky roofs, destructive tenants, messy yards, and late night phone calls about broken toilets.
Websites provide much higher returns, without the hassle of being a landlord. A website making $1000 a month can often be purchased for $10,000 to $15,000, especially when the buyer is not dealing with marketplace competition. This is an annual 70% – 120% ROI, and that’s assuming that the income never increases.
2) Websites Require Less Maintenance Than Houses
Websites never complain about noisy neighbors, leaky roofs, or broken toilets.
Websites never complain about noisy neighbors, leaky roofs, or broken toilets.
The income from websites is often passive, and even when it isn’t, it rarely requires you to leave your house. Even if you are not particularly tech savvy, a freelance web designer can usually maintain the virtual property without you lifting a finger.
Sites with user communities that run themselves, stable search engine rankings, or established web presences in social media often require little work to maintain. Of course, you can increase the income from the website by increasing its traffic, selling more products, building a list, and scaling the site if you choose.
A website will never call you in the middle of the night because the power is out, or require you to clean up after it moves out. While some websites require more work than others, they rarely require you to break a sweat.
3) Websites Require Less Start Up Capital and Risk Than Houses
The down economy has proven that real estate debt can be risky.
The down economy has proven that real estate debt can be risky.
Houses require at least a $100,000 investment. Even if a bank floats the majority of the cash, your butt is still on the line.
Fully functional, profitable websites can be purchased for less than what you would invest as a down payment for a house. Websites earning several hundred – even several thousand – dollars can be scouped up for a few thousand dollars, allowing you to skip the bank and not worry about a mortgage.
4) All The Same Real Estate Strategies Apply
Real estate investors will find that their existing strategies work with websites.
Real estate investors will find that their existing strategies work with websites.
Websites can be bought and sold for profit, just like houses, or they can be held for long-term income. In addition, websites can be purchased on option, assigned to other investors, and they can appreciate in value. Real estate investors are already familiar with these strategies.
The difference, of course, is that your risk is lower, your ROI is higher, and “virtual real estate” investing can be done from the comfort of the home, and without need for a bank. Learn how to flip these assets inside of Lump Sum Profits.
Until now, real estate investors have by and large shied away from investing in virtual real estate, but many are finding it to be an alternative to traditional real estate investing. As investors continue to discover that websites provide higher ROIs, require less start up capital, come with lower risk, and are easier to manage, the market will continue to grow over the next decade.
No comments:
Post a Comment