Online Property Financing

Online Property Financing

Investor · Louisville, KY · Member since 2014 · 142 posts · 77 votes

What I do is buy and sell websites / online businesses online. I know it's not the same as physical real estate however it is very similar. There is such a small amount of people that do this and it's hard to find a community to reach out to hence me singing up here.

I've been doing this for about a year and have been developing websites for about 5 years. I've only been buying and selling with properties worth around a few thousand and have been very successful. The average ROI for holding online property is 2-3 years (yes you read that right) and flipping is of course much shorter. 

I'm finding it difficult to get a loan as you would a traditional house. Lenders are used to that kind of thing and buying websites is new to them. Websites do have value and are considered an asset, yet it seems I can't get a loan to purchase one like a traditional house. The only options seems to be a startup business loan, or personal loan which don't provide enough capital and have high interest rates. I'm looking for $150,000, which would provide enough of an income stream that would let me do this full time.

I'm open to traditional and non traditional loans, investments, financial partners, or any other ideas that may be out there. 

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Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
10y

@Major Robertson

Welcome to the vibrant BP community. Your niche is not popular, but, apparently lucrative. I actually Googled "buy and sell websites" in an effort to educate myself on this tangential business.

However, my advice to you is that it's in your best interest to embellish your profile if you are looking to attract funding/lenders. I am sure you have some interesting highlights to share, that will make investors want to take a second look and contact you to offer partial or full funding.

My theory is that if you have a widget and can articulate its usefulness and value, then there will be a market to sell the widget if you can convince others to buy it.

Good luck, best wishes and continue to follow this uncommon niche that you are so passionate about to the extent of pursuing it full time!

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  • Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Major Robertson

    Welcome to the vibrant BP community. Your niche is not popular, but, apparently lucrative. I actually Googled "buy and sell websites" in an effort to educate myself on this tangential business.

    However, my advice to you is that it's in your best interest to embellish your profile if you are looking to attract funding/lenders. I am sure you have some interesting highlights to share, that will make investors want to take a second look and contact you to offer partial or full funding.

    My theory is that if you have a widget and can articulate its usefulness and value, then there will be a market to sell the widget if you can convince others to buy it.

    Good luck, best wishes and continue to follow this uncommon niche that you are so passionate about to the extent of pursuing it full time!

  • Montgomery, AL · Member since 2015 · 109 posts · 11 votes
    10y

    Can you tell me that how to investing my propert by online . 

  • Investor · Louisville, KY · Member since 2014 · 142 posts · 77 votes
    10y
    Originally posted by @Linval T.:

    @Major Robertson

    Welcome to the vibrant BP community. Your niche is not popular, but, apparently lucrative. I actually Googled "buy and sell websites" in an effort to educate myself on this tangential business.

    However, my advice to you is that it's in your best interest to embellish your profile if you are looking to attract funding/lenders. I am sure you have some interesting highlights to share, that will make investors want to take a second look and contact you to offer partial or full funding.

    My theory is that if you have a widget and can articulate its usefulness and value, then there will be a market to sell the widget if you can convince others to buy it.

    Good luck, best wishes and continue to follow this uncommon niche that you are so passionate about to the extent of pursuing it full time!

     Thank you for that warm welcome, and thanks for taking the time to look into the subject. 

    You are correct, there are numerous highlights I can mention like: I've never lost money on a buy, I've bought a $500 web property and sold it for $4,000 in the span of a month, and I've currently bought a property for $4,000 that I plan to sell for $10,000+ in the next few months. I also have a full business plan laying out everything.

    However the issue is finding people to pitch to besides a bank. I have no doubt that if I could find an accredited investor or non-bank lender I'd be able to secure funding. I'd even be fine with a loan as I'm confidant I'd be able to pay it off quickly. I'd love to hear if you had any advice about finding potential partners. 

    Thank you, even if I have to slowly build it up from my personal income stream + revenue from flips I'll keep perusing it. I'd just like to expedite the process and share the wealth a bit. And I plan on building it to a full fledged corporation after this allows me to be financially independent. 

  • Investor · Louisville, KY · Member since 2014 · 142 posts · 77 votes
    10y
    Originally posted by @Max Matrin:

    Can you tell me that how to investing my propert by online . 

     I'm a little confused on the working of your question. If you are asking how to invest in online properties I'd suggest a quick Google of "buy and sell websites". If you have more in depth questions I'd be more than happy to help.

  • Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Major Robertson

    Thanks for your feedback. Actually, I took the time to gather details and respond with value, because I like people who are passionate and focused on achieving their goals.

    My only suggestion is that you try to get a personal loan from the below crowd funding providers. Their personal loan ceiling is $35k, but, this would certainly give you a head start if approved.

    www.prosper.com

    www.lendingclub.com

    Disclaimer: I am not associated or have done business with either company.

  • Investor · Louisville, KY · Member since 2014 · 142 posts · 77 votes
    10y

    @Linval T. 

    It is very much appreciated.

    I have considered that route and will pursue it if I'm still unable to find larger funding. 

    If anyone else has any input I'd very much like to hear it.

  • Investor · Louisville, KY · Member since 2014 · 142 posts · 77 votes
    10y

    So I thought harder on this issue and decided it would be very difficult to secure funding for any decent amount without any collateral. I always wanted to get into real estate as well and that seemed to be the best way to get collateral. I started looking and saw a house, that if fixed up would be worth around $50,000 more than was put in. I realized that it would give me quick equity and I could keep the house, and take out 80% of that in a loan to invest. After reading more on here I quickly realized I was not the first person to think of this, it is the BRRRR method. I've been educating myself as much as possible and I think I'm going to pursue this route.

  • Montgomery, AL · Member since 2015 · 109 posts · 11 votes
    10y

    Choosing the right kind of home with a right kind of house financing product couldn’t be any easier.Whether you are buying a property, refinancing or unlocking equity on your home loan,

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