| Like many of you, I am always looking for a new | | | | people are making money at it and why this is a |
| way to make a buck. Also like many of you, I | | | | good thing to look into. |
| have looked into a number of opportunities in | | | | Let's start with the reasons this is a good market |
| several fields. For example, I have owned several | | | | to jump into |
| pieces of real estate. I am currently a landlord and | | | | Low barriers to entry - You can pick a hot |
| have been for 15 years. I see no reason to | | | | concert touring the country buy some tickets for |
| believe that I will not be for the next 15. I have | | | | a few hundred dollars and resell them on line. It is |
| bought and held onto a property for years and | | | | not unheard of to get a 20 - 50% return on a |
| sold when I thought the market was right or | | | | deal like this if the show is popular. While you |
| wanted to avoid having to put $10K into it for the | | | | might not retire on a few hundred dollars profit, |
| next tenant. | | | | there is always someone touring that you can |
| I always struggled with making a decent return on | | | | score some tickets to. Not a lot of industries |
| the House Flip. Buy and hold has done right by me. | | | | offer an ability to get in and out so quickly |
| I find that no matter how dilapidated a house is, | | | | without much cost. |
| the owner is never so stupid to sell to me at 50 | | | | Quick Inventory turnover - If you are buying and |
| cents on the dollar. When I have been able to buy | | | | selling concert tickets, you might be holding your |
| under-market, the cost of upgrades ate into my | | | | inventory for about three months on the long |
| profits. | | | | end. Like Sports? If you are working with sports |
| The foreclosure route was not much better. | | | | tickets you might hold them for six months. |
| Those foreclosure auctions seem to attract | | | | Regardless, when you are making 20 - 50% |
| enough of a crowd these days to drive up the | | | | returns in a two to six month period, the annual |
| price to near market. | | | | return is that much higher. |
| Even though I have a preference for buy and | | | | Many places to sell - there are several places to |
| hold, everyone who hears that I have invested in | | | | sell your tickets online. Each has some pros and |
| real estate wants to here about my experience | | | | cons. eBay of course seems to have the most |
| as it relates to flipping houses. | | | | volume, but you have to deal with your own |
| "How many have you bought and sold this year?" | | | | shipping, listing fees and the expected eBay buyer |
| "uh.., none but I did last year and I wish I held | | | | who decides not to buy after all. Stubhub seems |
| onto it." | | | | to be the leader of the pack in the non-eBay |
| "No you did the right thing. Where are you looking | | | | crowd. They have completed over 12 million |
| now? Can I get in?" | | | | transactions. The have higher fees than eBay but |
| People love the flip. Everyone want to flip a house. | | | | they include the shipping, only charge a fee when |
| I can even watch some cable TV shows about | | | | something sells and take care of all those nasty |
| flipping houses. If you are a house flipper - power | | | | people who change their mind about buying your |
| to you. I dislike the pressure of having to move it | | | | product. RazorGator is another place that follows |
| quickly. I like knowing I will hold onto a property | | | | the StubHub model. They just do not get as |
| for a and get a better return. | | | | much traffic. |
| I you want to flip something, I have a better | | | | TicketNetwork and EventInventory each have |
| suggestion - sports and concert tickets. Half of | | | | high volume but these places cater to the full-time |
| you said to yourselves "Ticket scalping?" and the | | | | ticket broker instead of the person doing this on |
| other have asked "Is that legal?". Yes and yes are | | | | the side or a newbie. Lastly, if you want to |
| the quick answers but let's take a closer look at | | | | scrape the bottom of the barrel and make extra |
| the concept and the ability to make money. | | | | work for yourself, you can always post your |
| Ticket scalping gets a bad rap. Somewhere it got | | | | inventory on CraigsList. |
| embedded in our minds that we have an inherent | | | | Is it Legal? - While there are some restrictions in |
| right to purchase tickets for our local team or | | | | some states - every where else it is fair game. |
| concert directly from the source. Anything that | | | | For example, If I live in New York and the venue |
| impedes that is an attack on our basic human | | | | seats more than 6,000 people, I can only mark |
| rights. Hogwash. As an entrepreneur, you have | | | | the ticket up by 45%. If I do not live in New |
| the right to seek out markets where there is a | | | | York, I can sell the ticket for any amount I |
| limited supply of a product and the demand | | | | choose. |
| exceeds that supply. Tickets fit the bill. | | | | The laws regarding this are old and are written to |
| Still not sold? I figured a few of you needed | | | | keep people away from selling tickets outside a |
| more. I brought up the house flipping scenario for | | | | stadium. In an online world they are just |
| a reason. People love the house flip. Buy under | | | | antiquated. There is a trend in state legislatures to |
| market value, slap a coat of paint on and sell over | | | | ease up on these laws. With a market size $12 |
| market value. The value the house flipper brings | | | | billion dollars, go figure that eBay and StubHub |
| to the table is upgrading the "curb appeal". I | | | | have hired some lobbyists to help ease up on the |
| haven't met a house flipper yet who wanted to | | | | laws. |
| upgrade the heating system. Now what do which | | | | Flipping tickets is a good place for an entrepreneur |
| is closer to meeting a basic need - shelter or a | | | | to look into making some cash. At least compare |
| baseball ticket? Not even close. | | | | to flipping houses, it has lower startup cost, higher |
| Please do not read this the wrong way. I am not | | | | returns and quicker turnover. Everything you |
| attacking house flippers. I love house flippers. I | | | | want in a business. |
| have done it and will do it again. But the general | | | | Whether you want to dive off the deep end solo |
| population loves the house flipper and loathes the | | | | or get some help from people who have been |
| ticket flipper. One serves a want and one serves | | | | there. That help is relatively inexpensive and |
| a need. | | | | provides a high value regardless of where you get |
| Now hopefully most of you have made the | | | | it from. It is definitely cheaper than a real estate |
| mental switch that it is OK to flip tickets. Lets get | | | | attorney. |
| down to business and talk about how some | | | | |