“Virtual Real Estate Investing” is a relatively new concept. What is meant by “Virtual Real Estate Investing” ranges from online games like SecondLife (where real profit can be made) to the use of internet technologies to make normal real estate investors more profitable.

To get the facts, I sought out the man generally considered to be the father of virtual real estate investing: Bryan Ellis.

“I began using the term ‘virtual real estate investing’ in the late 1990’s when I realized the clear similiarities in profit strategies, regardless of whether the “real estate” is “virtual” or “physical” said Ellis.

One example of the parallels between virtual and physical real estate Bryan Ellis cites is the similarity between the monetization of domain names versus physical property. He points out that control of a domain name or even a specific web page is much like controlling a real estate property ” those assets can be monetized in similar ways: By selling them for a profit, by leasing them, by offering advertising, etc.

I must admit: Its easy to see the parallels. Consider this: If you own a piece of real estate in a desirable neighborhood, your real estate has value because other people are interested in that location. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. So it doesn’t matter if you own physical real estate or virtual real estate – you’ll likely use similar strategies to turn them into money in your pocket.

In our next installment of this series on virtual real estate investing., Bryan Ellis will share the internet analogies to the physical concept of real estate development.