Idea: Secondlife Land Trader's Mutual Fund
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-22-2005 08:46
Hello all,
I have an idea I want to share with you and see what you think. I believe there is great money to be made in land trading - if one does it right. To obtain the maxiumum efficiencies, a land trader must operate in the highest tier (65,xxx meters). At this tier, each M of land costs approximately .3 USD cents [USD $0.003] per meter per month (that works out to approximately L$.74 per month). Tier at this level is $195 per month, so I would need to raise $195 USD x L$250 = L$38,750 to cover 1 month of tier.
Then one would need to buy the land. I would need 65,500 meters of land to recognize the greatest tier efficiency... at an estimated L$3 per meter of land, that would require L$196,500.
So in total, L$235,250 would need to be raised to start this land trading venture.
If we operated for 1 month, we would need to sell our land inventory for at least L$235,250 (or L$3.59 per meter of land) which I believe is totally do-able.
I'm willing to put up L$100,000 of my own money.... is anyone interested in investing in this venture with me? If so, please IM me In world or post here.
I'm very interested in seeing what you all think.
Best regards,
Jamie
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Eboni Khan
Misanthrope
Join date: 17 Mar 2004
Posts: 2,133
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06-22-2005 08:48
Shouldn't this be on Land and economy? Why do we go through the same thing like once a week.
Also, buying land right now is like buying fools gold.
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Jauani Wu
pancake rabbit
Join date: 7 Apr 2003
Posts: 3,835
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06-22-2005 10:51
jamie, you should group the land that you purchase to recieve a 10% bonus on tier. you can buy 6550 m2 more by registering to alternative accounts.
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Jauani Wu
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-22-2005 15:43
Thanks for the tip! In capturing efficiencies, every little bit counts!!
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Toy LaFollette
I eat paintchips
Join date: 11 Feb 2004
Posts: 2,359
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06-22-2005 15:57
since there are no binding contracts in SL I would never do something like this unless it was with a very close personal friend.
_____________________
"So you see, my loyalty lies with Second Life, not with Linden Lab. Where I perceive the actions of Linden Lab to be in conflict with the best interests of Second Life, I side with Second Life."-Jacek
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Toy LaFollette
I eat paintchips
Join date: 11 Feb 2004
Posts: 2,359
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06-22-2005 16:07
From: Jamie Bergman Hello all,
I have an idea I want to share with you and see what you think. I believe there is great money to be made in land trading - if one does it right. To obtain the maxiumum efficiencies, a land trader must operate in the highest tier (65,xxx meters). At this tier, each M of land costs approximately .3 USD cents [USD $0.003] per meter per month (that works out to approximately L$.74 per month). Tier at this level is $195 per month, so I would need to raise $195 USD x L$250 = L$38,750 to cover 1 month of tier.
Then one would need to buy the land. I would need 65,500 meters of land to recognize the greatest tier efficiency... at an estimated L$3 per meter of land, that would require L$196,500.
So in total, L$235,250 would need to be raised to start this land trading venture.
If we operated for 1 month, we would need to sell our land inventory for at least L$235,250 (or L$3.59 per meter of land) which I believe is totally do-able.
I'm willing to put up L$100,000 of my own money.... is anyone interested in investing in this venture with me? If so, please IM me In world or post here.
I'm very interested in seeing what you all think.
Best regards,
Jamie Your alsdo basing your figures on 100% of the land being sold, this doesnt happen, the true cost would have to be 6-7L$ per meter and land can be bought for that now so what is the advantage?
_____________________
"So you see, my loyalty lies with Second Life, not with Linden Lab. Where I perceive the actions of Linden Lab to be in conflict with the best interests of Second Life, I side with Second Life."-Jacek
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Toneless Tomba
(Insert Witty Title Here)
Join date: 13 Oct 2004
Posts: 241
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06-22-2005 19:09
Just my two cents, right now it's a buyers market land is very cheap out there, land sales are very much slow. I'm currently trying tier down and it took me quite awhile to to just sell off my 16k worth of land, PG land around L$3 /sqm and mature for around L$4.5 /sqm. If you think you have a hunch that land demand will increase in the next couple weeks prepare for a hefty loss. I think there are some signs it's getting better but how much?
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-23-2005 06:31
I agree. Definately a buyers market. But thats one of the principles of making money: Buy when everyone is selling.... sell when everyone is buying.
I'm just trying to make a classic turnaround play.
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Margaret Mfume
I.C.
Join date: 30 Dec 2004
Posts: 2,492
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06-23-2005 08:21
The implication of a one month turnaround in your initial post would cause someone to question your expectations. It is definitely a buyers market and some great parcels can be had at a lower than one one expect cost. The question of when a profit can be realized on the investment is at issue. That and trust; investing with someone unknown to me irl would be a stumbling block.
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hush 
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-23-2005 08:59
Thats why this is an "investment" opportunity, not the FDIC.
Of course, this opportunity offers far greater potential return than letting you money sit in a money market or CD.
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Toy LaFollette
I eat paintchips
Join date: 11 Feb 2004
Posts: 2,359
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06-23-2005 09:07
when I invest I do it with well established firms. Proven track records.
I see none of the above in this scheme
_____________________
"So you see, my loyalty lies with Second Life, not with Linden Lab. Where I perceive the actions of Linden Lab to be in conflict with the best interests of Second Life, I side with Second Life."-Jacek
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-23-2005 09:11
I guess the Bergman Land Mutual Trust Company will not be able to call you a stockholder then, eh?
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Margaret Mfume
I.C.
Join date: 30 Dec 2004
Posts: 2,492
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06-23-2005 09:18
From: Jamie Bergman Thats why this is an "investment" opportunity, not the FDIC.
Of course, this opportunity offers far greater potential return than letting you money sit in a money market or CD. It is only the time period as presented which I am inclined to disagree with. I understand the concept of investment and do not disagree with the greater potential comparison which you present. Which is why I didn't post a more typical response to your idea such as "Anyone who invests in virtual land is (fill in the blank with the insult to intelligence of your choice)!".
_____________________
hush
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Jamie Bergman
SL's Largest Distributor
Join date: 17 Feb 2005
Posts: 1,752
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06-23-2005 09:22
Much appreciated  |
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Toy LaFollette
I eat paintchips
Join date: 11 Feb 2004
Posts: 2,359
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06-23-2005 09:30
From: Jamie Bergman I guess the Bergman Land Mutual Trust Company will not be able to call you a stockholder then, eh? Hardly since only the one person who orders a estate can sell it, groups are just for land management, they have no real power on estates. Investors would own nothing. It boils down to trust. Bottom line.
_____________________
"So you see, my loyalty lies with Second Life, not with Linden Lab. Where I perceive the actions of Linden Lab to be in conflict with the best interests of Second Life, I side with Second Life."-Jacek
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