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Investing in Second Life Real Estate

Darren said: "Does anyone here even know what I mean when I say this term? What do you think of virtual investments like this?"

Mr. Gekko said: "Yes, and your investment will be worthless once the fad is over."

Darren said: "Agreed. Since Linden essentially controls all the "Linden Dollars" you run a very real risk. Second Life is living mostly off press releases, IMHO, but a virtual economy is an interesting idea."

Mr. Gekko said: "[QUOTE=Darren]Agreed. Since Linden essentially controls all the "Linden Dollars" you run a very real risk. Second Life is living mostly off press releases, IMHO, but a virtual economy is an interesting idea.[/QUOTE] To me, Second Life is just a 3D version of MySpace or Facebook. Ditto World of Warcraft (which has a virtual economy, as well). Both are a waste of time and money."

Pb3190 said: "I think most of these things are just passing fads, but I know of some people who have made hundreds of dollars from things like Warcraft and other online games. It isn't much, but some is better than nothing at all."

Mr. Gekko said: "[QUOTE=Pb3190]I think most of these things are just passing fads, but I know of some people who have made hundreds of dollars from things like Warcraft and other online games. It isn't much, but some is better than nothing at all.[/QUOTE] With the amount of time they spent "leveling up" their character in Warcraft they could've studied the market and potentially made thousands."

Pb3190 said: "Very true, but put yourself in the mind of a college or high school age student. For most of them, playing a game would be more fun. Also, if they play a game, they can have fun. If they try to learn the market, they might simply lose money and have no fun. That being said, I would much rather study the market than spend endless hours playing games."

Mr. Gekko said: "[QUOTE=Pb3190]Very true, but put yourself in the mind of a college or high school age student. For most of them, playing a game would be more fun. Also, if they play a game, they can have fun. If they try to learn the market, they might simply lose money and have no fun.[/QUOTE] I'm sure these are the same kids who have a beer bong somewhere in their dorm."

AlfredSokol said: "My main problem with selling things in a virtual environment is nobody "needs" it. You don't really need a house in Second Life, so it costs real money why would anyone buy it?"

Heather said: "First life is more important to me. I tried it out (when the weather was crappier) and "just didn't get it." Not a bad place for people that are into 3-D modeling or doing a profession as an architect or maybe even doing teleconferences for a major corporation, but for the majority of mainstream people, it's just more pressure on the wrists and typing fingers. Needless to say I didn't pump much money into Lindens virtual real estate/business model. Who has time?"

Pb3190 said: "I agree with Heather. For anyone with a life and some skills, any type of 'second life' is going to be a waste of time. More money can be made in the real world."

ratAphooey said: "the Linden conversion rate is about 1 to 270. so you need 270 lindens to make a buck. sounds like a get rich slow scheme to me"

AlfredSokol said: "I'll tell you something stupid about that game. People sell airplanes and cars in there but everyone can fly by default! :roll:"

Mr. Gekko said: "[QUOTE=Pb3190]I agree with Heather. For anyone with a life and some skills, any type of 'second life' is going to be a waste of time. More money can be made in the real world.[/QUOTE] I've been trying to pound that into my friends head... "Playing World of Warcraft is a waste of time. Especially since you're a competent and creative individual." I guess he has to find out on his own... or wait until his wife slaps him in the head."

AlfredSokol said: "Blizzard Entertainment, the company that owns World of Warcraft [B]does not[/B] encourage people to profit there. The "gold miners and brokers" have made a ton of money though. Second Life has no "game play" to speak of. I can't imagine people who enjoy shooters and the like to actually enjoy it."

Pb3190 said: "Blizzard has actually taken some 'gold mining' groups from China and Florida to court for making real money from the games. It isn't enough from what some of my friends say. I don't understand how anyone can play that game for so many hours at a time... :dazed052:"

ratAphooey said: "its majorly addictive...if your a freakin' loser! :roll:"

Worthydaydream said: ""its majorly addictive...if your a freakin' loser!" Oh I agree... because GuildWars is much better :th_SmlyROFL: Seriously though, being someone who has played many games and sold currency, you need to stay up to date with the current fads and know how the currency is produced. Second life... probably won't get you rich. They mimic real life (casino's, stores, etc...) and if you're not rich in real life... how are you going to get rich in a video game. They encourage the sale of currency {{because THEY get a cut and THEY are the ones who CREATE the currency}} Games that discourage currency selling. Warcraft/Guildwars/Everquest etc... these games are where you can exploit needy gamers. Either by finding "farm" locations and essentially taking most of the fun out of the game by gathering goods for other people all day... OR by creating/using a macro or other type of computer program to do the gathering for you. I myself do neither of these options. I play games for fun and since we only live once, you should enjoy it however you choose. ((but how did you sell currency like you mentioned before)) I played diablo two people bought SOJ's like hotcakes I could find an item worth an SOJ every hour or so. At one point I think I owned around eighty SOJ's across my characters (true they only sold for a couple bucks each, but at the time I was only 16 and making around $400 total off of playing a video game was great) Plus remember, at 16 I was working part time and didn't have enough money for more profitable time-wasters like the Stockmarket. Just my two cents :th_dblthumb2:"

AlfredSokol said: "Nice post. One stat I found telling was that the IRS decided not to worry about gambling in Second Life, mainly because the top casino was only earning about $1,500 per month. So the economy is still pretty small if thats all the loot a casino can bring in."

lil dickie said: "WDD that is impressive stuff. Defintely good money for playing a game you love."

Pb3190 said: "Two Summers ago I was able to make a nice piece of change from a video game. I finally realized how much time I was wasting and decided to stop, but I was able to sell my account and my in game assets. It wasn't much in the long run, but it paid for an entire Summer of playing paintball."

AlfredSokol said: "Exactly. Its not like time is free!"

Worthydaydream said: "I think every experience in life is unique and can help you in some way. Even watching a pointless movie will have a moral in there somewhere. Just do what you love... and think of a way to capitalize off it. Gardner's sell produce Car buffs fix old cars and resell Gamers sell gold Traders sell stock"

AlfredSokol said: "Makes sense. If you can make money doing your "passion" life is that much easier."

samsserver said: "[QUOTE=Mr. Gekko]To me, Second Life is just a 3D version of MySpace or Facebook. Ditto World of Warcraft (which has a virtual economy, as well). Both are a waste of time and money.[/QUOTE] GOOD POINT"

newinvestor123 said: "I used to play an MMORPG called Final Fantasy XI, and I used to see people in the game who did NOTHING but play - It seemed like they were there 24/7, almost non-stop. Eventually, I too got to the point to where all I really wanted to do was play the game, and I can attest to the fact that they can become a substitute for reality, if you allow them to. After playing this particular game for almost two years (for at least a couple hours, nearly every day), I decided to quit before I turned into a total geek zombie computer nerd with pale skin and a stutter. That was about two years ago, and I don't miss it, but some of the people I used to play with still play the game. One guy I know has been playing this particular game for almost 6 years now. Yeah, they're almost exactly like a big Myspace or Facebook. There are always people you can talk to, do missions with, etc, which is one of the big draws of games like this. But - Looking back on my experiences with this games makes me realize just how much potential for revenue there is with online games... Until they begin to regulate them. It's just too bad that Blizzard (the World of Warcraft owner) is a private company. Maybe I can catch the next big thing though..."

Pb3190 said: "I think I know what you're saying New. I used to play games on the computer and Xbox Live for hours at a time. Then I realized what a waste it all was, and that I could be doing something productive to help me in the future. I think if Xbox Live was a stand alone thing, and not part of Microsoft, it would have excellent returns. However, it is just a small piece of the Microsoft puzzle. I know there are many MMORPGs in the works, I'll have to take a look and see if any are from a public company."

Darren said: "Gaming can get out of control. [url=http://www.msnbc.msn.com/id/19766590/]Babies starved while gamer's game[/url] [quote] The children of Michael and Iana Straw, a boy age 22 months and a girl age 11 months, were severely malnourished and near death last month when doctors saw them after social workers took them to a hospital, authorities said. Both children are doing well and gaining weight in foster care, prosecutor Kelli Ann Viloria told the Reno Gazette-Journal. Michael Straw, 25, and Iana Straw, 23, pleaded guilty Friday to two counts each of child neglect. Each faces a maximum 12-year prison sentence. Viloria said the Reno couple were too distracted by online video games, mainly the fantasy role-playing “Dungeons & Dragons” series, to give their children proper care. “They had food; they just chose not to give it to their kids because they were too busy playing video games,” Viloria told the Reno Gazette-Journal.[/quote] Quite an extreme case, but I'm sure it happens."

Pb3190 said: "That made the news in my area as well. It is a shame that kids were harmed by parents playing too many games. I don't understand how anyone could play a game like that, hours on end day after day. Sure, during Summer and on various breaks I might play a game now and then, but those people need help."

newinvestor123 said: "Those idiots need a long jail sentence."

AlfredSokol said: "Look at the vacant staring idiot eyes on both of them."

Rbreb13 said: "[QUOTE=AlfredSokol]Look at the vacant staring idiot eyes on both of them.[/QUOTE]Look like crank heads!"

lil dickie said: "Man oh man! That really churns my butter! How could they have even paid for their gaming?"

newinvestor123 said: "[QUOTE=Rbreb13]Look like crank heads![/QUOTE] Yep... They probably are... were..."

AlfredSokol said: "The video game was their crank. The back story is the guy got a $50,000 inheritance. They quit their jobs and started gaming non-stop until this happened."

Heather said: "What a ridiculous story. You'd think that their hands would start getting tired after a while - enough to feed and clean their babies at the very least. There is no excuse for their behavior."

Pb3190 said: "$50,000 would be nice, and is by no means pocket change in my opinion. However, it would not be enough for me to quit working if I had two children. Not only did they neglect the kids, what was the plan when they ran out of money due to constant gaming? Those two need either mental help or jail time."

AlfredSokol said: "I'm pretty sure they had no plan at all. It's tough to try and get inside the mind of a whack job. Luckily for us, we'll never know what the hell they were thinking. But I wonder if game makers feel any responsibility with cases like this."

Pb3190 said: "On that note, I wonder how the makers of Grand Theft Auto games feel about their games? People are always claiming they are the cause of violence in young kids. I disagree, considering how much I used to play that stuff and how passive I turned out when it comes to violence."

AlfredSokol said: "I'm with you. These companies are not being honest when they say their product has "no effect". Although Bic isn't responsible for burning down someone's house, they would have some responsibility if an epidemic of house burnings took place, especially if everyone was using one of their lighters. The gaming addiction thing is getting widespread as hell."

Pb3190 said: "Gaming addiction is getting widespread. I had some friends who decided in their senior year to stop caring, give up and play video games. I thought maybe it would last a few days then they would get back to their work. They are still playing."

lil dickie said: "Boy when I came up you didnt have this problem. Nobody got addicted to PONG."

Pb3190 said: "Pong, the computer version of tennis/ping pong. Great game every once in a while if I am bored, but with the modern stuff out now, there is not much boredom. That and all the work I have to do."

Heather said: "The bigger question is who's got time? No game is that engaging to me. I used to play Poppit at Pogo, but quit and haven't looked back.."

newinvestor123 said: "MMORPG's are structured to hook the players and keep them hooked. Their 'societies' are essentially based on a status-based hierarchy in which the highest level character with the best gear is the big dog on the block - And a few players are granted God-like status by the community as their high level conquests become widely known, and become quasi-examples of what one can become provided he or she play enough. In the game, there is always something else to do, whether it is another quest, another piece of gear to find/craft/buy, or another level to attain - And that linearity, which contrasts sharply with the relative chaos of reality, I believe, is what attracts people to those types of games and keeps them playing. In short, it's simple. You always have something progressive you can do. It's also pretty easy to find someone else with the same aspirations as you, which makes it easy to make virtual friends - Much easier than in real life. I think that most people play the games for fun, but I also think there is a growing number of people who supplant the physical reality of their lives for the virtual one in the game world. Eventually, MMORPG's will be regulated here in the US - Like they are [URL="http://news.bbc.co.uk/1/hi/technology/4183340.stm"]planning on doing in China[/URL]."

Pb3190 said: "If our government ever regulates games in a similar way to China I would have a fit... Not that I want to play a game for that much time, but based on the fact that they would be telling me what I can and can not do with my own time, in my own house. I think China certainly does have a problem with gaming addiction, but for the government to restric gaming time? Maybe over there, but I hope not in the "land of the free.""

newinvestor123 said: "Well, yeah... I'll cede that point."

Pb3190 said: "The thing I don't get, is why China? What makes their country have so many 'gaming addicts' compared to the rest of the world? In America, many people own computers and have high speed internet. In China, many people use internet cafes and have to pay per hour to use a computer. I would think since Americans usually own a computer, we would have similar if not worse problems. I'm glad we don't, I just don't get why."

Heather said: "They've actually started "rehabs" there to treat the gaming addicts. Perhaps there isn't a lot to do in their off time from making American products that are contaminated with lead?"

Pb3190 said: "I read an online article on CNN.com months ago that one of their military run 'rehab' centers employs electroshock therapy, isolation, and drugs to combat 'gaming addiction.' That does not sound too much like rehab to me, but if that's what actually works..."

Heather said: "That might be enough to keep you off the video games while you're there. :th_coolio: I was just reading that [URL="http://www.reuters.com/article/entertainmentNews/idUSN0545009220070905?feedType=RSS&feedName=entertainmentNews"]HBO is airing a documentary[/URL] that was all done in Second life. Sounds sort of interesting but I wonder how many people it will move to play the game? (or whatever you want to call it.)"

lil dickie said: "The real life story of an "avatar". Damn. :laugh:"

Pb3190 said: "Seeing as I don't have HBO, it won't move me any!"

lil dickie said: "Even if you had HBO (which I dont either - I rent Deadwood and Sopranos from Blockbuster) you wouldnt watch this movie!"

Pb3190 said: "Deadwood looks good, but I have never seen a single Sopranos movie. Some of my friends talk about it a lot, but I am too cheap to buy it."

Mackie said: "Must admit that I can't 'see it' either. I hear that there are kids in Eastern Europe who spend all day collecting things on World of Warcraft and then selling them on ebay and they make a decent living. Of course, in some of these places US$150 per month is a decent living..."

lil dickie said: "I guess for hard up third worlders it might be exciting. :th_dblthumb2:"

Pb3190 said: "I never played Warcraft, but I have sold stuff in other games and made some good money a few years ago. I didn't play to that intention, but I got tired of the game and making some money seemed like a good option."

EWhytsell said: "I used to play an online space game "Star Sonata" were several college age guys would make $700 to $1500 in 2 to 3 weeks of leveling an account and then selling it off. Also a few could sell ingame credits for real money making around $10 per billion which is a pretty good real life income for that game. Oh and btw second life removed casinos from the sim. They were getting into to much trouble. Evan"

Pb3190 said: "What was the trouble they were in? With more and more money being made from these type of things, it's not going to be long before there are some serious tax laws for money made like this."

sreeja said: "Whether it is a single-family home or an entire apartment building, investing in real estate is a profitable business. How to buy properties, deal with tenants and work with leases and/or evictions takes a lot of education and even more common sense.Consider the location of the home and the condition it’s in. Make sure it is convenient for you to get to in case you have to show it, fix it, paint it, change the locks - or all of the above. Make sure you are well aware of the potential defects before you buy and how much the fixes will cost. This is the number one problem in owning real estate for investments – not realizing the expense of upkeep and repairs."

lil dickie said: "[QUOTE=sreeja]Whether it is a single-family home or an entire apartment building, investing in real estate is a profitable business. How to buy properties, deal with tenants and work with leases and/or evictions takes a lot of education and even more common sense.Consider the location of the home and the condition it’s in. Make sure it is convenient for you to get to in case you have to show it, fix it, paint it, change the locks - or all of the above. Make sure you are well aware of the potential defects before you buy and how much the fixes will cost. This is the number one problem in owning real estate for investments – not realizing the expense of upkeep and repairs.[/QUOTE] Second Life is a virtual game. You should pay attention to what you're responding to with your copy/pastes."

AlfredSokol said: "[QUOTE=lil dickie]Second Life is a virtual game. You should pay attention to what you're responding to with your copy/pastes.[/QUOTE] You roasted [I]his[/I] nads. :th_coolio:"

Heather said: "Virtual real estate is a lot different than real real estate. Maybe he got lost in the thread somewhere?"

AlfredSokol said: "SporeMonger posted this up in the ShoutBox. [url=http://www.latimes.com/business/la-fi-secondlife22jan22,1,5958139.story?coll=la-headlines-business&ctrack=1&cset=true]Bank Run in Second Life[/url] [quote] The 33-year-old from Chicago, who played the game as a raven-haired vixen called Zania Turner, deposited $140 in Ginko Financial and waited for the money to grow. Instead, it vanished five months ago when Ginko, perhaps the first Ponzi scheme in history perpetrated by three-dimensional online avatars, left Second Life. "I was foolish," Roberts said. So were many others. Ginko took with it about $75,000 in real-money deposits, shaking faith in Second Life's venerated lawlessness -- no cops, no courts, no government -- and unnerving Linden Lab, the usually laid-back San Francisco company that created it[/quote] This then caused a virtual run on the bank and pandomonium ensued. I think this was why most of us were so negative in this thread."

Pb3190 said: "I know of many online games with subscription fees and things like that, but a online game with a banking system like that? I did not know virtual online games had that much money in them. Shame it went bad, but I think it would have only been a matter of time."

ratAphooey said: "Caveat emptor I guess. I think I would be hardpressed to put real money into a game."

Priya Gokhle said: "couldn't guess what all comments are about. All broken link s in story or might be my head is rolling after reading 1000 threads!! -Priya"

lil dickie said: "Man Second Life is for dorks. No way is Linden Labs making money on this crap!"

Heather said: "I guess people will fall prey to these types of schemes. I wonder how much dancing they had to do to "save" those Linden's? It seems that the press releases have slowed down quite a bit out of them. Perhaps they sold out all of their server space?"

pranith said: "No, I don't think so as the investiments in the real estate will never be worth less. I love to invest in the rela estate we can expect good returns."