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How to Make Money Buying and Selling Virtual Real Estate Land | Decentraland Flipping

Ever wondered ‘how to make money with virtual real estate?’. The concept of virtual real estate flipping is fairly new but it’s an exciting space full of money to be made for virtual real estate investors that are brave enough to explore.

Decentraland is one such organization built on blockchain technology. A virtual world with limited land that can be owned, build on or even rent! Just like real estate in the real world but with the added dimension of being virtual.

What’s so exciting about Decentraland?

I got interested in the project back in January when I had no idea virtual land ownership was even a thing. I was just searching different blockchain projects and stumbled open Decentraland. A crypto blockchain project inspired by novels such as Ready Player One and Snow Crash.

After a bit of researching I was hooked and decided to jump right in buying my first couple of properties for around $500 USD each.

Now, 6 months later, I’ve bought and sold 100’s of properties and made close to $100,000 USD doing it!

In this article I’m going to break it down so beginners can understand the project and opportunities that are arising in the virtual modern world.

What is Decentraland?

Decentraland is a blockchain project created by Ari Meilich and Esteban Ordano as the project and tech leads.

Both have been involved in major tech projects and have a great team behind them to be able to execute Decentraland.

The below video was taken from their home page and does a great job in showing what Decentraland aims to be.

The concept of Decentraland takes a bit of time to understand but simply put it’s a world you can enter with virtual reality glasses and explore the creations and experiences different people have built on their lands.

Here is the map of the Decentraland world.

Image 1

Black lines: These are roads you can traverse to explore the map. You can walk and roam freely and view the lands connected to these.

Green spaces: Image 2 below can give more detail on this but basically the green areas are where people own parcels of land. There are small pixel sized blocks you can claim ownership to which are 10×10 metre lands you can enter in and build on with virtual reality glasses. These are darker grey blocks in the area below.

Blue spaces: Projects that are being built by certain communities dedicated in building and maintaining them. There are over 50 exciting projects all around the decentraland map. You can visit the beautiful Chinese culture in Dragon city, go shopping on Fashion Street or Take your friends from around the world on an epic roller coaster ride on festival land! The possibilities are endless.

White blocks: These are known as ‘Genesis Plaza’s’ and are areas where events can be held. Think of stadiums, spawn points and other events where announcements can be made. You cannot own land here.

 

Zoomed in section from the atlas view over at decentraland.org

Image 2

The above image is a zoomed in version of the first map. The colors are different but you can see the smaller blocks, each representing 10×10 metres of land in the virtual world.

The light blue blocks are lands for sale. These listed on the Land Marketplace.

The price given above are in the digital currency used in Decentraland called ‘MANA’. MANA can be traded for real money just like any other cryptocurrency and can be bought on exchanges like binance and bittrex.  You can find out how to buy MANA in this article I wrote earlier. It’s value fluctuates based on it’s demand. Currently MANA is trading at $0.10 each so the above lands are selling for $1,000 – $4,500!

So how do you make money from Decentraland?

I have been doing this for the last 5 or 6 months so you’ve come to the right place!

Just like the real world, Real estate in Decentraland has different value based on where it’s located.

Lands closer to the city centre are worth more.

Lands close to big projects like vegas city, Aetherian and Fashion Street are also worth more. Basically the more rare and in demand the land is, the more it’s worth!

Lands touching roads are worth more than lands in the middle of nowhere. You can still visit the lands that aren’t connected to the roads by teleporting to them but they won’t be in view of the foot traffic going up and down roads.

The currency used in Decentraland is called ‘MANA’ and MANA is worth around 10-15 cents USD at the moment. The below is a breakdown of some of the land deals I’ve done.

It will take some time to understand the world. I recommend reading all the articles on this blog, this one in particular that explains different land locations and what they are worth and why.

Once you know land valuations it’s time to spot opportunities. Every now and then there will be a land listed for cheaper than what it’s worth. You can buy it and re-list it for a higher price!

Sometimes you can get awesome deals privately from sellers that need to sell bulk land are just can’t be bothered waiting. These are private deals and you can find them in the community channels like Decentraland’s Discord or the Telegram group for Decentraland.

Imagine making 5-10 land deals a month and profiting $500 – $1,000 off each one? There’s definitely money to be made!

Frequently Asked Questions for Decentraland

How high can you build?

Yes, there is a build height restriction when building on your land. The formula used is ‘log2(n+1)x20m

This basically means, the more lands you have connected to one another, the higher you can build!

Here are some build height restrictions examples,

1 Parcel – 20 meters

5 Parcels – 46.5 meters

10 Parcels – 66.5 meters

20 Parcels – 86.5 meters

50 Parcels – 112.9 meters

100 Parcels – 132.9 meters

It’s worth getting lands connected to each other but you can expect connected parcels to be worth more as there aren’t that many ‘estates’ available.

Eventually there will be less and less connected parcels for sale.

What are the land base dimensions

Each parcel is 10×10 meters in base dimension so there is plenty of space to have a small gathering in your land. Of course, you can build multiple stories like this guy has done below,

 

Or even battle your Etheremon!, (A company similar to Pokemon built on the blockchain),

 

 

Can you teleport? What are the modes of transport?

Decentraland is owned by it’s members not a single organization. So things like teleporting and flying and other forms of transport are up to the community to vote on and approve. It has been confirmed that there is teleportation.

How can you visit blocked lands? can someone block you in and build around you?

Technically yes, they can but this won’t happen because people will most likely want to display their creations and have paths others can traverse on. The same reasons to build in the real world do not apply here. There is no need to build covers for your home unless it’s for privacy.

Are there any competitors to Decentraland?

Not many that are as far ahead in terms of having a community, land ownership and buzz around the project. There are small ones popping up here that aren’t worth mentioning.

The only one that is a strong competitor is High Fidelity which will also be built on the blockchain. It’s a project that will be built from the creators of Second Life.

Why is this vr land project on crypto/blockchain?

For those that don’t understand the blockchain technology that powers bitcoin, this project is a great way to show how the technology can be beneficial when trading value.

The most exciting thing about Bitcoin is not just that it can be a form of transacting value online but the technology itself allows to trade value amongst agreeing parties without there being a need for a middle party to oversee the transaction. Previously a bank.

This can be illustrated in Decentraland where you can buy a land for $x and sell it for $x within minutes without there being a need for another party to oversee contractual obligations are met. Can you do this in the real world?

The answer is no. Why? Because there needed to be a body that looks over the transfer of ownership and assets/money. There needed to be a bank to ensure your money goes to the seller and the sellers ownership of the property is transferred to you.

Without getting too technical, blockchain allows people to send money, assets and other things of value to each other via contracts on the blockchain. These contracts can be one way or even two way where both agree to a deal, ($5,000 to buy a house), and the transaction can happen once both parties submit agreed upon contracts.

For decentraland, this means you can buy and sell properties on the daily as you don’t need someone to keep approving transactions.

Conclusion

Living in a virtual world is becoming more of a reality and with projects like Decentraland and Second life, realizing that there are opportunities to make money providing services or other replications of work practices in the real world but in virtual are possible.

There are businesses that want to set up shops on their virtual land and even market their services whether it be some sort of architecture firm or even tax accounting. The possibilities are endless when you bring things into the virtual realm.

For us property investors there is no doubt that the world will continue to become a business playground and will be a lot of fun to explore!

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