- Impact
- 3,245
Home for sale; $10,000
Let me start off by asking a common sense question? If houses in your neighborhood "on average" sold for $100,000, and you had a list of comparable's proving it, would you buy your neighbors house for $10,000 as an investment "if" you could afford it? Well of course you would, assuming you could pay the taxes on it annually, and maintain it.....think reg or renewal fee's.
Most of you know, as a business guy first and not your typical domainer, I've been speculating buying domains the last 24 month for what is referred in the debt buying business as "pennies on the dollar" In the debt buying business, the "average" debt purchased by a buyer is 3 pennies. For example, if it's a credit card debt and the balance owed is $2,000, you would have to pay $60 or .03 x 2,000. Make sense? Typically how this works in the collection industry, whatever you pay for the debt you should set your goal to recover three times what you paid for it, And in this instance, you should recover $180 over time. That wasn't too hard was it?
Now lets compare this with the domain industry, and here's an example of a buy I made today. A couple hours ago I purchased a .com domain, DomainSavant(.)com for $8.50, but before I bought it, I kicked the tires so to speak. I checked the comparable's at GD where they valued my name at $1,328. Then I went to Nambio and checked how much the "average" domain there sold for? It's $3,100. And then I went to hosterstats, and learned my domain had been continually registered for the last 20 years until it was dropped in June of 2019.
You might say, if I were buying my neighbors house, i didn't find toxic waste under the house. btw, Nameworth, the new appraiser in town and here on NP appraises DomainSavant for $4,450. Let's go on to say, if there's just one chance in a hundred (1%) the domain sells for $1,350 your net back would be $13.50 providing a return of almost 60% or 160 x 8.50 equates to a 60% return. And that's "if" you just sell 1% of your portfolio annually.
Now lets go on to say I have "average" domains to sell (and experts in the domain industry say I do), if I were to sell 2% instead of 1%, my risk vs. reward actually doubles.
I'm pretty confident in my ability to make most putts from prior golf experience. The $8.50 I spent this am should tell you something about risk vs. reward and my risk tolerance.
I hope this exercise helped someone
Now go buy your neighbors house before someone else does
Let me start off by asking a common sense question? If houses in your neighborhood "on average" sold for $100,000, and you had a list of comparable's proving it, would you buy your neighbors house for $10,000 as an investment "if" you could afford it? Well of course you would, assuming you could pay the taxes on it annually, and maintain it.....think reg or renewal fee's.
Most of you know, as a business guy first and not your typical domainer, I've been speculating buying domains the last 24 month for what is referred in the debt buying business as "pennies on the dollar" In the debt buying business, the "average" debt purchased by a buyer is 3 pennies. For example, if it's a credit card debt and the balance owed is $2,000, you would have to pay $60 or .03 x 2,000. Make sense? Typically how this works in the collection industry, whatever you pay for the debt you should set your goal to recover three times what you paid for it, And in this instance, you should recover $180 over time. That wasn't too hard was it?
Now lets compare this with the domain industry, and here's an example of a buy I made today. A couple hours ago I purchased a .com domain, DomainSavant(.)com for $8.50, but before I bought it, I kicked the tires so to speak. I checked the comparable's at GD where they valued my name at $1,328. Then I went to Nambio and checked how much the "average" domain there sold for? It's $3,100. And then I went to hosterstats, and learned my domain had been continually registered for the last 20 years until it was dropped in June of 2019.
You might say, if I were buying my neighbors house, i didn't find toxic waste under the house. btw, Nameworth, the new appraiser in town and here on NP appraises DomainSavant for $4,450. Let's go on to say, if there's just one chance in a hundred (1%) the domain sells for $1,350 your net back would be $13.50 providing a return of almost 60% or 160 x 8.50 equates to a 60% return. And that's "if" you just sell 1% of your portfolio annually.
Now lets go on to say I have "average" domains to sell (and experts in the domain industry say I do), if I were to sell 2% instead of 1%, my risk vs. reward actually doubles.
I'm pretty confident in my ability to make most putts from prior golf experience. The $8.50 I spent this am should tell you something about risk vs. reward and my risk tolerance.
I hope this exercise helped someone
Now go buy your neighbors house before someone else does
