The Alternative Remedies Guide

“Virtual Real Estate Investing” is a relatively new concept. 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.

In order to figure out the truth of the matter, I sought out Bryan Ellis, whose experience in the fledgling industry is truly impressive.

When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.

One example of the parallels between virtual and physical real estate Bryan Ellis cites is the similarity between the monetization of domain names versus physical property. “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. For example, if you’re the owner of a desirable property, its desirability is (in a business context) largely due to its being in a location that is of interest to others. Similarly, ownership of a desirable domain name is valuable for the same reasons. In either case, you could sell or lease the asset and turn it 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.