3 Benefits of Becoming a Digital Real Estate Investor

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In the world of real estate investing there are various strategies, methods, and tactics that people use to make money.

Most of them involve significant risk - and while it is absolutely possible to make money as a real estate investor - it is also possible to lose money too.

They usually don't go out of their way to teach you that part at a typical real estate investing seminar for beginners.

In very broad terms there are two primary real estate investing objectives - short-term and long-term.

The idea behind the ever-popular "flipping" method is to buy a distressed property below market, cosmetically improve it as fast as possible, and then sell it for as much profit as you can.

If you are good at it that can be substantial - and amount to more than $25,000 per property and can be done in 30 to 90 days or less... when it goes right.

But what does it take to make it go right?

A great deal of highly specialized knowledge, negotiating skills, and abilities, technical skills, and other resources, including capital (money), a favorable market, and even a bit of luck too.

The other method often pursued is the buy and hold (long term) equity appreciation and cash flow method. This is also known as rental real estate investing - and in other words, you acquire properties and rent them out to tenants who pay you rent.

By the way - we are talking residential real estate here as opposed to commercial and other types of real estate investing.

When you rent out homes you are a landlord - regardless of whether you choose to use that term or not.

When you have the right property, the right systems in place and the right tenants - life is good!

Their rent covers your mortgage payments, your other costs, and provides a positive cash flow on top of that - and all the while as the mortgage is paid down over time and the property appreciates and your equity increases (the difference between the current value and what is owed on it).

You may even decide to do some periodic "equity mining" meaning refinance with a cash-out mortgage for a portion of your equity - and since that is borrowed money it is generally tax-free... let that sink in.

The IRS does not consider that (borrowed) money to be income. Let's say you pull out $25,000 - you get to use every dollar as you see fit yet the loan payments on that borrowed money are going to be paid back by your tenants from a practical perspective. Of course, opinions and interpretations vary as well as local requirements - so before you actually try that - consult your own legal/tax professional and proceed at your own risk...

Consider that vs if you generated $25,000 in profit from some other business venture where you would not have that benefit.


Of course, there are problems here too, and it is never as simple as some people want to make it seem. You do have issues you must know how to handle.

For example - you must be able to attract and then screen potential tenants, complete well-written lease agreements, determine the correct market rent before that, handle security deposits, manage collections and accounting of rent payments, maintenance, repairs, tenant relations - and yes even evictions for non-payment of rent and other problems at times.

Simple? Nope... But absolutely critical to know and handle - or be able to know how to select and hire a professional property manager to manage them properly.

Digital Real Estate Benefits

1. No Physical Assets Required - In essence your "properties" are all information-based and you can build a very profitable Non-Asset based business with minimal liability and minimal risk.

2. Build Once Sell Repeatedly - With an actual house or apartment, you can only rent it to one tenant at a time, or sell the thing to one buyer. With digital properties (such as courses, books, other information products) you can sell the same thing simultaneously to many people and all through complete automation once it is launched.

3. Worldwide Market - You have access to a huge and almost unimaginable marketplace through the world wide web aka the internet. That is much different from physical real estate and many other types of businesses which are local only and thereby forever limited. It also means you can build and run your digital business from virtually anywhere - just so long as you can get an internet connection.

There are so many benefits to owning a digital - internet-based business that I could build a massive list and take up a lot more of your time and mine to cover it much more in-depth.

But I do not think that is really necessary - as this simple and short (relatively speaking ; ) article is enough to get the main ideas across.

It also does work like real-world real estate in some of the good ways - while at the same time avoiding most of the real-world real estate liabilities.

For example - take the idea behind multiple rental properties. While a positive cash flow of say a couple of hundred dollars per property does not seem all that impressive alone - its value becomes apparent with multiple units.

In other words;

1 = $200

2 = $400

20 = $4,000

100 =$20,000 per month

Remember in this example we are talking only about positive cash flow - and not considering the equity accumulation as the mortgages are paid down and the value continues to rise over time.

Digital properties work in a similar way. Let's say you have one course and from it, you only make $35.00 per month on average. Not terribly impressive is it?

But how about if you have 10, or 20, or 100, or even more? With every course, you create and publish you have a new piece of "digital real estate" and another income-producing property!

Once built and launched it will keep cranking out money month after month consistently for many years to come too.

Blog posts, ebooks, YouTube videos, Podcast episodes, and other such things all work the same way. The amounts you will earn are not always impressive - not alone they aren't. But as they accumulate over time as you build more digital properties and launch them into the world - then after a certain point it begins to accumulate and to accelerate with total income becoming far more impressive - and continuing to grow so long as you keep adding "properties" to your portfolio (or Business Empire as I prefer to call it).

Do You See The Big Picture Now?

Because of my background in real estate and in trucking I have a unique way of looking at the big picture that isn't always noticed so easily by other people who have not had similar experiences in life.

What I mean is that if nobody shares the information I am sharing with you here - it is easy to fail to see the true potential of your online business.

I see that all the time.

Instructor after instructor builds their first online course each and every year. New people get excited and they build a course and launch it - hoping to make big money. Then when they only get a few students and make $2.00 to $35.00 their first month or two they get upset and quit!

The rationale is that "I spent 80 hours (or more) working my butt off to build this course and only get a lousy $10.00 for it! It's NOT worth it!"

They take their marbles and go home, never knowing what might have been!

Had they just built more courses (or blog posts, YouTube videos, and other content/digital real estate!) that income would have grown - and then continued to come in as semi-passive income for years to come.

The same is true with monetized blog posts (with affiliate links) and with YouTube videos when used to market your own courses, books, affiliate links - and eventually through Google (Which owns YouTube) paying you directly too!

So please keep all that in mind as you work now to Build Your Own Business Empire and see it all as it is and how it can work TOGETHER and cumulatively over time as you add "Property" after property to your digital real estate investment portfolio.

Once you understand this concept - it is a lot easier to stay motivated and keep on keeping on day after day and week after week, at the very same time MOST other people are going to quit - they have, they do and they will - because they do not see this as I have just explained it to you.

Tell me what you think about all this in the remarks below.

If you did find any value here then please consider sharing this post with your own network too.

Well, that's about it for this one. I hope you have found some value here, and that perhaps I have at least given you some new to you things to think about.

My next post here will be about " Passive Income Lies vs Passive Income Reality".

Until next time, be safe and always remember;

Choose Your Own Course, Build a Better Life

Best regards,

L.D. Sewell

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Recent Comments

33

Thanks LD. I'm not slow on responding, I wanted to wait until I could copy this post before opening it. I just knew it was going to be a 5 star post. I was wrong, 6 stars.
Just what I was looking for to answer some questions in my head just now. New Year plans etc. etc.
Perfect timing for me. Thanks so much.
Enjoy the New Year, let's go blast 2021 into the stars, have a great year my friend.
Bux

Bux, Thanks for the kind words - I do appreciate it!

I wish you all the best too - and a very Happy and Wealthy New Year!

Best regards,

L.D. Sewell

Great post L.D. It is an important reminder especially to us "newbies" to this game. It can´t be said enough times that all the small revenue will amount to big streams if we are consistent and diligent in what we do. Just look at the big rivers, they have their origins from small trickles of water and become these giant rivers famous all over the world.

I will share this further via my network.

Roy

Thanks Roy!

I have always loved that analogy too - and it is very true - all those little streams do add up and become very powerful when combined.

Have a great day Roy!

Best regards,

L.D. Sewell

This is a great article with much wisdom and experience! My past life included physical real estate and I did well. Now in my later years I am slowly building a digital real state business. I am excited and see much potential!
Thank you for sharing your ideas!

Michael Inman

Thanks!

Digital real estate indeed- as you can see, my approach is literally that. Local rank and rent lead generation- it is taking time to rank, but when the sites do it will be mine for as long as I want. Thanks for the read

Thanks! Your comments are also true - it will take time to build and you will always own it for as long as you like.

Best regards,

L.D. Sewell

Thanks that is useful information

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