Bryan Ellis - Virtual Real Estate Investing vs. Physical Real Estate Investing
Sunday, December 21st, 2008A newcomer to the world of investments in the notion of “Virtual Real Estate Investing“. There are many variations on what this term means, encompassing everything from using the internet to aid in real estate investing efforts to participating in online games such as SecondLife.
To separate fact from fiction, I asked Bryan Ellis for comments. He’s the man many consider to be the father of this new form of investing.
“I began using the term ‘virtual real estate investing’ in the late 1990’s when I realized the clear similiarities in profit strategies, regardless of whether the “real estate” is “virtual” or “physical” said Ellis.
An example of the similar nature of “virtual” and “physical” real estate Bryan Ellis likes to point out is the methods of making a profit from domain names compared to physical real estate. “These types of assets - websites and physical real estate - can be monetized in very similar ways like buy lo/sell high, leasing/rental and advertising opportunities” he says.
I must admit: Its easy to see the parallels. Consider this: If you own a piece of real estate in a desirable neighborhood, your real estate has value because other people are interested in that location. Similarly, ownership of a desirable domain name is valuable for the same reasons. Regardless of the type of asset, you can sell or lease or use any number of strategies to turn the assets into cash.
In our next installment of this series on virtual real estate investing., Bryan Ellis will share the internet analogies to the physical concept of real estate development.
