Land Bubble has Officially Burst, and LL Pours it On!
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Snowflake Fairymeadow
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Join date: 21 May 2006
Posts: 704
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06-10-2008 16:33
From: Talarus Luan Most flippers have already tiered up, so that assumption is invalid. They are using tier they have already paid for. Sometimes they do tier up, but only very carefully.
Don't forget that quite a few land dealers buy tier from other folks. IE, if you have your 512sqm tier free, they will often pay you something like L$0.10-0.15/sqm per week for it, or something. As a result, they often have plenty of already-paid tier to use in their land trading practices.
As such, LL doesn't get any extra tier from land being flipped. Yes they had to tier up at some point to have a tier gap, therefore LL got the money more than once. Anyway that is the last time I am going to say this. Its very obvious a lot of people think flippers "automatically" have a certain amount of land that they somehow don't have to pay for each month and are just "filling in a tier gap". Believe me I do know what I am talking about they do have to make a choice every month and therefore they pay for it. Land flipping is not as easy as people seem to think. Perhaps that is why so many people are dissing it, because they really don't know what kind of effort is involved to be successful.
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Cristalle Karami
Lady of the House
Join date: 4 Dec 2006
Posts: 6,222
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06-10-2008 16:33
From: Snowflake Fairymeadow They had to tier up at some point in order to have a tier gap. Therefore LL did get their money, and the next person's and the next person's. And of course they wouldnt keep doing it if it were not successful. As far as the profit margin being worth the doubling in tier, that is totally subjective depending on the parcel you are looking at, and how much of a tier jump the flipper would be making. Once they tier up, LL gets NO MORE NEW MONEY on all the plots flipped. Flipper A, Flipper B and Flipper C pay 1 sim's worth of tier monthly and a new sim comes on the block. Flipper A buys a plot from auction winner and fills up his tier a little more. He sells to Flipper B, who sells to Flipper C, who finally sells to an end user. Has LL made any new money? Not unless the end user is a brand new premium. LL gets its cut regardless of whether Flippers A B or C hold land because that is their chosen tier level. edit: if a flipper wants to tier up that is different, but the usual transaction does not involve that.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:36
From: Talarus Luan Well, you also have to realize what they are earning in the flipping business. These people aren't stupid; they aren't going to get caught with their britches down holding several thousand US$ worth of land for an income of a couple hundred bucks a month, either (which wouldn't even cover their tier).
No, most land traders have the money to blow, and they know where their limits are. I realize exactly how the business works. It seems to me that a lot of people in this thread, don't, however.
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Isablan Neva
Mystic
Join date: 27 Nov 2004
Posts: 2,907
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06-10-2008 16:37
From: Snowflake Fairymeadow Land flipping is not as easy as people seem to think. Perhaps that is why so many people are dissing it, because they really don't know what kind of effort is involved to be successful.
People don't diss land flippers because they think it is easy, the diss land flippers because said flippers create an artificial price floor on the value of land and force people to pay a middleman who has arbitrarily decided what the land should be worth.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:38
From: Cristalle Karami Once they tier up, LL gets NO MORE NEW MONEY on all the plots flipped. Flipper A, Flipper B and Flipper C pay 1 sim's worth of tier monthly and a new sim comes on the block. Flipper A buys a plot from auction winner and fills up his tier a little more. He sells to Flipper B, who sells to Flipper C, who finally sells to an end user. Has LL made any new money? Not unless the end user is a brand new premium. LL gets its cut regardless of whether Flippers A B or C hold land because that is their chosen tier level. In your scenario LL got tier 4 times from the initial tiering up of each person. I am sure they prefer it rather than getting tier only once.
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Cristalle Karami
Lady of the House
Join date: 4 Dec 2006
Posts: 6,222
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06-10-2008 16:39
From: Snowflake Fairymeadow I realize exactly how the business works. It seems to me that a lot of people in this thread, don't, however. Oh please. It's not rocket science. You are the one saying that LL makes its money five times over if a plot is flipped five times. Wrong. Tier is considered used once donated and you don't have to own a speck of land. Unless you're the auction winner or a brand new premium LL doesn't make a dime from flipped land until the flipper cashes out on the Lindex. And that's not guaranteed.
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Snowflake Fairymeadow
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06-10-2008 16:40
From: Isablan Neva People don't diss land flippers because they think it is easy, the diss land flippers because said flippers create an artificial price floor on the value of land and force people to pay a middleman who has arbitrarily decided what the land should be worth. The phrase I often see is that flippers "did nothing except mark up the price on a piece of land". There is no force involved in buying SL land. If someone is attempting to force you to, I suggest you contact your local police department. 
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Cristalle Karami
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Join date: 4 Dec 2006
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06-10-2008 16:41
From: Snowflake Fairymeadow In your scenario LL got tier 4 times from the initial tiering up of each person. I am sure they prefer it rather than getting tier only once. Garbage. You're double-, triple-, ad infinitum counting the initial tiering up. As concerns EACH PLOT, LL doesn't make a dime except from an auction winner or a premium deciding to tier up to own that plot.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:43
From: Cristalle Karami Oh please. It's not rocket science. You are the one saying that LL makes its money five times over if a plot is flipped five times. Wrong. Tier is considered used once donated and you don't have to own a speck of land. Unless you're the auction winner or a brand new premium LL doesn't make a dime from flipped land until the flipper cashes out on the Lindex. And that's not guaranteed. Cristalle, I am saying LL made money 5 times from 5 people tiering up. You seem to be reading more into it and placing words in my mouth. Fact is LL makes money each time a person tiers up, whether they are a flipper or not. That is indeed not rocket science. If someone tiers up it is a smart decision by them to keep that tier full if they are a flipper. They still had to pay for the initial tier up.
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Raymond Figtree
Gone, avi, gone
Join date: 17 May 2006
Posts: 6,256
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06-10-2008 16:44
From: Isablan Neva People don't diss land flippers because they think it is easy, the diss land flippers because said flippers create an artificial price floor on the value of land and force people to pay a middleman who has arbitrarily decided what the land should be worth. Do you really need a reason to diss a land flipper? The middleman doesn't decide anything, BTW. The buyer does. As much as flippers would like to get top dollar for the land they are offering right now, there ain't nobody buying. The Bay City insanity excepted.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:47
From: Cristalle Karami Garbage. You're double-, triple-, ad infinitum counting the initial tiering up. As concerns EACH PLOT, LL doesn't make a dime except from an auction winner or a premium deciding to tier up to own that plot. Where did I say that, I never counted the tiering up double or triple times? You are putting words into my mouth. Anytime anyone tiers up they pay. That is a fact. If they keep a certain level into the next month, they pay again. Just because you don't seem to understand what I am saying does not mean you have to be rude and call my posts garbage.
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Cristalle Karami
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06-10-2008 16:51
Stop moving the goal posts. You said From: Snowflake Fairymeadow ... if a land flipper buys a piece of land, and then sells it to another person, who in turn does the same...let's suppose it gets flipped 10 times in a week before ending up with an end user who wants to keep it. LL just collected tier 10 times on one piece of land in a week from 10 different folks.
If it went immediately to the end user, LL would only collect the same amount of tier once that billing period. LL collects tier at the chosen level regardless of how much land is held. LL only makes money on a plot if someone decides to tier up, or is the auction winner. If there were no flippers, who is to say that LL would not have had more premiums buying the land directly from auction winners? Flippers were the primary factor in land going from 10-12L/m2 from an auction winner to 15+L/m2 for nondescript flat green at the height of the market. The answer is that we don't know, because flippers still exist.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:55
From: Cristalle Karami Stop moving the goal posts. You said
LL collects tier at the chosen level regardless of how much land is held. LL only makes money on a plot if someone decides to tier up, or is the auction winner.
If there were no flippers, who is to say that LL would not have had more premiums buying the land directly from auction winners? Flippers were the primary factor in land going from 10-12L/m2 from an auction winner to 15+L/m2 for nondescript flat green at the height of the market. The answer is that we don't know, because flippers still exist. Each of the 10 had to tier up at least once to do what I said. I never said they paid tier over and over again each time they flipped. I said LL collected tier *from 10 different folks* instead of from *one person* in a week, not that they collected tier each time the land changed hands.
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Talarus Luan
Ancient Archaean Dragon
Join date: 18 Mar 2006
Posts: 4,831
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06-10-2008 16:57
You said LL makes money from 10 people on *one piece of land*.
We know that LL makes money from tier, but they don't make tier on *EACH* piece of land traded. They can trade one parcel down that chain, or 1,000 parcels, during a month, and they make no more money. That's where your original statement falls apart, and is what we have been pointing out.
Also, don't assume that everyone else but you is ignorant of the flipping game. Some of us are *intimately* involved in it, for better or for worse.
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 16:57
From: Cristalle Karami If there were no flippers, who is to say that LL would not have had more premiums buying the land directly from auction winners? Flippers were the primary factor in land going from 10-12L/m2 from an auction winner to 15+L/m2 for nondescript flat green at the height of the market. The answer is that we don't know, because flippers still exist.
The auction winners *are* flippers too, unless they buy a whole sim and keep it.
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Cristalle Karami
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Join date: 4 Dec 2006
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06-10-2008 17:02
From: Snowflake Fairymeadow Where did I say that, I never counted the tiering up double or triple times? You are putting words into my mouth. Anytime anyone tiers up they pay. That is a fact. If they keep a certain level into the next month, they pay again.
Just because you don't seem to understand what I am saying does not mean you have to be rude and call my posts garbage. You are the one insinuating that we don't understand the business. We do. I see now that we are just arguing from two different points of view. Sling said "No amount of land dealing by residents affects the tier paid on the land." You disagreed. Sling (and I, and I assume Talarus) looked at it from the month to month point of view that LL doesn't get any extra money for any given plot that is flipped. Unless that plot was a tiering up, LL sees no new money. Once it's sold at auction, it doesn't matter who holds it or how many times it is flipped until the land is abandoned or bought by someone tiering up. You are looking at it from the point of view that if the person didn't ever decide to tier up, LL wouldn't make that money. If there were less flippers, there would be less people holding large swaths of tier. Yes, you're right, LL would make less money if less people in general held the tier to buy that land. But my point of view is not general, it's the value of each plot. LL doesn't make any extra money if the land is flipped until the flipper(s) cash out, if at all.
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Snowflake Fairymeadow
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06-10-2008 17:02
From: Talarus Luan You said LL makes money from 10 people on *one piece of land*.
They did, assuming that each person had to have enough tier to buy the land. From: Talarus Luan We know that LL makes money from tier, but they don't make tier on *EACH* piece of land traded. They can trade one parcel down that chain, or 1,000 parcels, during a month, and they make no more money. That's where your original statement falls apart, and is what we have been pointing out. No one has been able to point out that I said LL makes money on *EACH* piece of land traded because I DIDN'T SAY THAT! From: Talarus Luan Also, don't assume that everyone else but you is ignorant of the flipping game. Some of us are *intimately* involved in it, for better or for worse. I didn't say THAT either. You are the one who ASS -umed, not I.
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Talarus Luan
Ancient Archaean Dragon
Join date: 18 Mar 2006
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06-10-2008 17:03
The other problem with your original statement was this:
1) Land isn't traded 10 times in any one C2C transaction. At most, it trades 3 times. 2) The number of people involved who are flipping is a very small group, probably less than 100 residents.
Thus, justifying land flipping for 100 residents' tier, while pissing several times that many people off enough to STOP paying tier doesn't make a lot of sense to me.
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Cristalle Karami
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06-10-2008 17:04
From: Snowflake Fairymeadow The auction winners *are* flippers too, unless they buy a whole sim and keep it. That is, unfortunately, a necessary step since LL doesn't sell smaller parcels other than abandoned land. But beyond that, what purpose do the other middlemen serve?
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Snowflake Fairymeadow
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Join date: 21 May 2006
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06-10-2008 17:04
From: Cristalle Karami You are the one insinuating that we don't understand the business. We do. I see now that we are just arguing from two different points of view.
Sling said "No amount of land dealing by residents affects the tier paid on the land." You disagreed.
Sling (and I, and I assume Talarus) looked at it from the month to month point of view that LL doesn't get any extra money for any given plot that is flipped. Unless that plot was a tiering up, LL sees no new money. Once it's sold at auction, it doesn't matter who holds it or how many times it is flipped until the land is abandoned or bought by someone tiering up.
You are looking at it from the point of view that if the person didn't ever decide to tier up, LL wouldn't make that money. If there were less flippers, there would be less people holding large swaths of tier. Yes, you're right, LL would make less money if less people in general held the tier to buy that land.
But my point of view is not general, it's the value of each plot. LL doesn't make any extra money if the land is flipped until the flipper(s) cash out, if at all. I never insinuated that you dont understand the business, I did say that you *did not understand what Iwas saying*, because you didn't and it was very painfully obvious.
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Snowflake Fairymeadow
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06-10-2008 17:06
From: Talarus Luan The other problem with your original statement was this:
1) Land isn't traded 10 times in any one C2C transaction. At most, it trades 3 times. 2) The number of people involved who are flipping is a very small group, probably less than 100 residents.
Thus, justifying land flipping for 100 residents' tier, while pissing several times that many people off enough to STOP paying tier doesn't make a lot of sense to me. Yes Talarus, it was a hypothetical situation posted on a message board, not a marketing demographic or a scripture carved in stone. You are right about everything and I am wrong about everything. I know nothing and you know everything. There, feel better?
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Talarus Luan
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Join date: 18 Mar 2006
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06-10-2008 17:06
From: Snowflake Fairymeadow They did, assuming that each person had to have enough tier to buy the land.
No one has been able to point out that I said LL makes money on *EACH* piece of land traded because I DIDN'T SAY THAT! Then your original point made no sense, because there are many many more transactions between consumers than between land flippers, and the tier involved wouldn't change anything. From: someone I didn't say THAT either. You are the one who ASS -umed, not I. From: Snowflake Fairymeadow I realize exactly how the business works. It seems to me that a lot of people in this thread, don't, however. You better check that ASS-uming countenance in the mirror, my fair lady. 
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Cristalle Karami
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Join date: 4 Dec 2006
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06-10-2008 17:07
No, you said From: Snowflake Fairymeadow Land flipping is not as easy as people seem to think. Perhaps that is why so many people are dissing it, because they really don't know what kind of effort is involved to be successful. and Talarus' quote of you above. ...which implies that we don't understand this business, when we very much do.
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Talarus Luan
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06-10-2008 17:08
From: Snowflake Fairymeadow Yes Talarus, it was a hypothetical situation posted on a message board, not a marketing demographic or a scripture carved in stone. ..and I properly responded to it with realistic counters. From: someone You are right about everything and I am wrong about everything. I know nothing and you know everything. There, feel better? Sure do. The passive-aggressive "I am WINNAR!" button.  Gotta love it! 
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Snowflake Fairymeadow
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06-10-2008 17:08
From: Talarus Luan Then your original point made no sense, because there are many many more transactions between consumers than between land flippers, and the tier involved wouldn't change anything. You better check that ASS-uming countenance in the mirror, my fair lady.  As I said Talarus, you are right and I am completely wrong and I am also not entitled to post my opinions as such on your message board. Got it.
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