ROI - Loan to purchase

[cwinhall]

I am considering taking out a small loan of about $1500 to invest in 1 to 3 great domains.

These domains will have to be able to bring in enough money through monetisation to pay the loan rates each month.

Is this a plausible idea?

 

[domainsusi]

Do the math first - then look to buy your domain(s) with proven track record of income for at least 12 months back.

Being very optimistic, you may get your loan at 10% interest.

$1500 at 10% amortized over 3 years - your payment is $48.40 per month
$1500 at 20% amortized over 3 years - your payment is $55.75 per month

You will need to find a domain or site that will produce this amount just to break even after 3 years.

If you want a profit on your investment, the domain income must be more than these figures.

 

[tricolorro]

I am considering taking out a small loan of about $1500 to invest in 1 to 3 great domains.

These domains will have to be able to bring in enough money through monetisation to pay the loan rates each month.

Is this a plausible idea?

:hi: cwinhall

Presumably these "great domains" are already registered and you are considering buying
them from the current owner.

If that's true, how are the domains being used now?

Are they earning income?

How much?

Do you have a higher and better use for the domains in mind?

Since you are going to finance the domains you are considering buying and require
that the domains at least cover the loan's principle and interest, I would suggest you
buy domains that are already having cash flow so you know the numbers.

Then you can always work on increasing the earnings.

To ask if buying certain (unknown) domains on credit, and if those domain would cover the loan's
costs, is really not possible to answer.

I don't play the lottery but If I buy a lottery ticket tonight, will I win?

It's kind of the same question.

Based on your criteria don't buy domains, buy cash flowing domains.

:imho: