A neat thing is happening on the web. Sort of an e-renaissance in a sense. A small but hardy and professional group of internet niche site publishers is picking up on the boom in internet real estate development. They are becoming WIRED, and it means awesome, content-rich niche sites are popping up all over the net.Almost every surfer on the web has run into a junky site intended only for them to click an ad. You know the kind of site I’m talking about…no content, nothing of value to the visitor, and very frustrating to land on.This is the intention of the developer. They WANT you to be in a hurry to get away…through one of their pay-per-click links.These sites are fast disappearing from the big engines. This is great news. What’s even better is the sites that replace them in the engines are starting to look very nice, both in design and quality of content.More and more searchers are starting to actually find answers to their searches on the first try again!Rest assured, the people behind these new content sites are not the same people they’ve replaced. These are folks who actually care about their visitor experience on their sites. They want their visitors to come back again and are providing enough value to visitors to actually bookmark them and do just that.What “World Internet Real Estate Developers” have re-discovered is that asset building is far more successful, responsible, grown up, and profitable than building spam sites.They are starting to build sites that they are proud to show to the world, and the world is responding with great enthusiasm! Even the engines are treating these developers with the respect and admiration they deserve.Good content makes good “cents” too. Of course that phrase has been bandied about so much in the last year that it seemed as if everyone was talking about it but few were actually practicing what they were preaching.The value of a fairly aged content site with a few hundred visitors a day is very high compared to just a year ago. Many people invest in one or two of these niche sites that are already in the engines and getting traffic when they find them for sale.And a good investment it is! If you can get someone to part with a modest traffic site that is already seasoned in the engines, you are lucky to snag one for anywhere from $5,000-$100,000+ depending on the niche, products, and income of the site.The developers of rich content sites are not only walking to the bank with daily income that rivals the corporate salary they replaced, but can cash out of a network of niche sites at very tidy sums. A fairly large network of sites, from 100-1000 could net the developer millions of dollars in fact.Who is buying? Other large developers and even very large Fortune 500 companies along with investors of all kinds who turn the network traffic into gold of their own.It is very much like the real estate boom after the last world war. Many many developers lined their pockets by developing new housing all over the country for returning soldiers.The internet is in dire need of great sites. If you think the net is full, you are only partially right. Combined with some great sites with great information in hundreds of specialty niches from fly fishing to scrap booking, there is also a great deal of junk out there taking up a lot of space.Anyone who has been on the net for awhile has experienced her fair share of lost surfing time on disappointing, meaningless, content-less sites.Smart niche site developers are quietly building quality, feature and content-rich sites to capitalize on this terrible “year of the spam site.” We all know content is king, but it is finally starting to pay off for the people who develop content-rich sites in a big way these days.Hopefully the decline of “gimmick” sites will continue for the good of the entire internet community. If the developers of these sites are richly rewarded, then more power to them. They deserve it!While there is an answer to almost every question a person could ever have somewhere on the net, for most surfers those answers are buried far too deeply on obscure sites to find.With content sites being developed in thousands of niches with the goal of being found and utilized, surfers and researchers are going to be able to quickly and conveniently find the information they seek on pleasant, rich sites in the near future.And the people who develop these e-real estate assets are supported by the income these sites generate and any partial or complete sales of the networks of sites that they build.Sounds like what the internet was supposed to be in the first place!Copyright 2005 Tale Chaser Publishing, Inc.
In the first four parts of this Article we discussed certain fundamental components underlying the development process. Every new development project needs money or financing. The financing is usually in the form of a construction loan. We also discussed how important tenants are to any new development project. Tenants are important because they pay rent and rent equates to cash flow. Cash flow encourages lenders to lend, investors to invest and buyers to buy. Of course, it is not always easy to find quality tenants so we discussed how important location was in convincing tenants to sign a lease agreement and commit to a new development project. Location is probably the single most important factor for attracting and retaining quality tenants. Finally, in part 4 of this Article we began to discuss the five basic principles of developing commercial real estate with a focus on the, who principle. Who are the developer and the development team why this makes a difference in attracting key tenants?There is a reason we started this series of articles with the fundamental component of all real estate development projects-money. If a developer can finance a project they can get it built. Getting financing therefore, is the single biggest obstacle to moving from the developers vision to buying the land, constructing the building and managing the completed product. The who, what, where, why and how principles are based on the premise that obtaining financing will force the developer to ask and answer all the key questions needed to be asked and answered in order to justify and succeed in getting a new project built. The who, what and where principles help the developer define the project vision; who are you building the project for, what are you going to build and where are you going to build it. Once you have asked and answered all the key questions associated with the developers vision you have all the basic information needed to address the commercial real estate principle of why will the project be a success.In Part 4 to this series of articles we touched on the, who principle; who is the developer, the development team and the proposed tenants and users? We have also addressed the importance of the where principle or what is better known as, location, location, location. The, who and where are two of three principles that must be addressed to define the developer’s vision. The final principle to complete the developers vision is the, what principle. What are you planning to develop and build?In the, what phase the developer must analyze the issues associated with what developer specifically wants to build. This requires a detailed look at the basic issues related to the site and the planned use. Issues like permitting, entitlement, survey, plat, environmental, soils, zoning, traffic, ingress and egress and a whole host of others. The, what principle forces the developer to ask and answer all of the questions that must be addressed to receive a permit to build. Being in a position to “pull the permits” to build is very important. Without a permit the construction lender won’t lend and investors won’t invest.So with the, who, what and where principles addressed we can now assemble all of the information and begin putting together the project plan and financial summary. The project plan and financial summary is necessary to address the why principle. Why will the project be a success? The why principle is where you bring together all the key information to justify the projects potential and demonstrate that the project makes good sense. We will address the why principle in the Article to follow.