Ever take out a loan to buy a domain name?

[brizzad]

A domain I've wanted for years is finally for sale. It's for sale for $25,000. It's so tempting to just go take out a loan and buy the domain. Has anyone done this?

 

[dreaminginspiration]

Im sure some people have,

But
1: is it worth it?
2: will it earn you enough to pay back your loan?

 

[SimpleDomaining]

so nice question. i see bankers eyes when he wil read application loool. the point about loan purposes .
in another hand, if you think its worth it, and it will make you some money back (loan+%+profit), than why not?
p.s.
loll dreaminspiration, we wrote it in same time

 

[fonzie_007]

If you put a purchase on a credit card, it is similiar to taking out a loan... I've purchased domains on my CC before, but never actually taken out a full loan.

 

[dgridley]

It'd have to be a sure thing before I'd ever consider taking out a loan for a domain.. and there are no sure things in life.

 

[brizzad]

If you put a purchase on a credit card, it is similiar to taking out a loan... I've purchased domains on my CC before, but never actually taken out a full loan.

Usually every domain I buy I put on my credit card (travel reward points!).. but I don't have a $25,000 credit limit or I would've snatched this domain up so fast.

 

[B33R]

It's a big step! You better be really sure it's a good name.

I probably wouldn't - I don't like taking out loans for anything - but who knows if the right name came along and it was 100% perfect, maybe I would.

 

[ActiveSimSites]

Personally i'd never take out a loan, full stop. Well, the one exception for me would be expensive emergency surgery, nothing else would tempt me :yell:

 

[dreaminginspiration]

Personally i'd never take out a loan, full stop. Well, the one exception for me would be expensive emergency surgery, nothing else would tempt me :yell:

Heh im the same, never had a loan never will, i dont like CC or bank overdrafts or mortgages, i dont like owing people money :D

I will no doubt eventually need a CC but id make a part of asking for no credit :D

 

[fonzie_007]

DI -
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[deet]

Can you share the name with us ?
I would do plenty of research before doing this.
25K is alot of money for a domain. But if its your dream name then whos to say you cant buy it right...But then again I guess the could say no!

 

[wow!]

well , just think if you could sell this name for at least for $25000
Unless there is no price to feel like an owner of $25000 domain...
Sometimes excitements are worth a lot...

 

[Malaysia]

well i think better not share t he name here..or else someone else knwo u want the name desperately n will offer to you 30-50 k n u might still consider the loan for the higher offer ammount

 

[Shorty]

Good lord no, i've never ever bought a domain let alone taken out a loan to cover the costs of one.

Before you go crazy think it through...are you going to develop it if you get it? What type of revenue will it bring in? Will you be able to sell it for more later on?

Whatever name it is, i'd probably rather have 4000 or more crappier ones for the same amount of money...and the 4000 would probably bring more in.

 

[Xombie]

No. Its a domain you have wanted for a long time, which roughly translates as you will not be selling it. And it would have to be bloody fantastic to make 25000 in a year or two from ppc.

 

[trigatch4]

Dont Do It

Taking out a loan is the worst thing you can do. Sometimes people take this domain thing way too far.

Domains are like stocks - you invest in them with the intention it will grow in value and you make a profit on the sale. With this in mind:

(1) Nobody would recommend you take out a loan to purchase stocks. Buying stocks is something you do with excess cash - earning a return on existing assets.

(2) Investing in domains is much riskier than investing in stocks. Stocks always have potential buyers who will be willing to purhase your stocks at the fair market value. On the flip side, it is much more difficult to find buyers for domains. Businesses are tangible, domains are not.

I would highly advise you NEVER take out a loan for a domain. Use your money wisely... if you have some extra cash, investing in domains can prove to be a very wise decision. But, if you are in a crunch and need to liquidate, you could be in a tough spot trying to sell a $25k domain name that has no interested parties at the moment.

I hope you take my advice... goodluck!

 

[jandy]

I don't think it is smart to do so....
if you get it....do you want to sell it??
so can you get back the money right now?

for most people...domain is for fun....
take out a loan to buy a domain name??...you have to consider it...

 

[JYM]

Well it takes money to make money.. this is probably a really good domain name and if you buy it now and wait for later... I could see you making a huge profit. I would recommend that you go for it! That is... as long as your financial situation is not TOO tight and you have a very stable job.

 

[trigatch4]

Honestly

I wouldn't listen to the previous post, IMHO. That your financial situation isn't TOO tight? Is that worth gambling on? What happens if this backfires and you can't find a suitable buyer? How much money are you willing to lose? In a loan, what can you offer as collateral? Are you willing to give that up?

It's like the lottery. It's like blackjack. It's like poker. All you see is the possibilty of making a lot of money. This possibility blinds us to what we should be thinking about equally as much. What are you willing to lose?

Then there is the theory of opportunity cost. What else could you do with 25K that would earn you money? Lots. A savings account won't earn you much, but it won't lose you anything either. Your age comes into play too. I would just ask that you carefully evaluate this situation...

Because I know nothing about you, your financial situation, career or domain name for that matter - I can't tell you what you should do. But, perhaps what you should really do is ask people more knowledgable than us. Speak to a loan officer... the conversation is free. They will be able to advise you best from a financial standpoint.

I would love a PM to hear what you decide. Goodluck, and I hope I've helped.

 

[JYM]

True... but... I'm assuming that this 25 grand is going towards a great .com domain.. and with the increase in demand for these quality domains, it's sure to go up isn't it? I mean even considering something of that caliber, you must have enough money...

Also it's not exactly like poker or black jack. The chances are very good. If things go bad, maybe you might lose just a few thousand by selling it..

Plus it's business, you need to take risks!