Blogging vs. Real Estate
Posted on May 9, 2007
Filed Under Internet Biz, Real Estate
Are you kidding? Is this even a real comparison? Ok, I admit that it’s a huge stretch, but as both a real estate investor and a blogger sometimes I wonder which one I should spend more time working on.
Alot of beginning real estate investors buy investments that yield negative cashflow betting on appreciation to make their investment worthwhile. Many are happy that they just breakeven on a month to month basis. In fact, cashflow $100 to $200 per month is considered a great investment by some.
If you consider the effort and capital required to squeak out a mere $100 per month it makes you wonder if you should just put all that effort into a blog. After all, I contend that making $100/mo blogging ($3.33/day) is a very achievable goal within a month.
When purchasing a property an investor would put thousands of dollars down, pay closings costs, advertise the property, getting a renter, collect rents, etc… in order to make $100/mo positive cashflow.
As a blogger, start up costs are virtually nil. It takes about 3 minutes to get into this business. Your main asset here is your brain power. You are in total control of this business and your operating costs are just your time and brain thoughts.
The return on a particular post can be calculated as Steve Pavlina did in his post here. If you look at John Chow’s blog, you’ll see how his income increased almost exponentially. With just your brain, you can increase the income from your blog very quickly.
With real estate, on a single family home you cannot increase your cashflow significantly. You have to rely on market conditions and there is alot more risk than blogging.
I’m not saying that you should invest in blogging rather than real estate. However, I do believe that a person who is looking to gain some semi-passive income in the form of a few hundred dollars a month should looking into blogging. Blogging is virtually no risk and is truly a work from home job. Everyone has a hobby or passion that they can write about. There are readers and advertisers for every topic.
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