Extremely High ROI
Hello everyone,
1) For the web publishers out there, have you heard about the Business.com domain sales. In 1999, Jake Winebaum and Sky Dayton purchased the domain for a whooping $7.2 million which was the highest price paid for a domain name. Soon enough, they were mocked for paying a ridiculous price.
The laugh was actually the other way around. The same domain has been sold to a telephone-directory company R.H. Donnelley Corp. for $340-360 Million dollars! Talk about an extremely high ROI; 4622~4900% gain on their investment (before tax).
2) I use to work at a property management firm right out of college. The firm managed and invested primarily in Class-A office buildings in the Los Angeles central business district. The company does an excellent job managing and acquiring profitable buildings for long-term investments.
A fascinating thing that has been happening with trophy prized office buildings are the increased number of exchanges and the market price of the property. The cheap debt available from the commercial mortgage-backed securities (CMBS) allowed private and institutional investors to acquire properties at a highly leveraged debt. Thus investors were bidding and bidding on the Class-A offices (hottest property type this year), which resulted in incredibly high purchase price and very low yield expectations. Yet the cycle continued and certain properties were being exchanged within a short months at a higher price than the last transactions even when the building had not gone through a value-added work.