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What is virtual real estate? Simply stated, we’re talking about online businesses… or web-based businesses and app-based businesses. So what does Jock Purtle know about buying and selling online businesses? A great deal. It’s what he and his team does in his company, inessDigital Exits. Jock got into this niche market by buying his first online business in 2009, which he funded by private capital. His father was his investor. Jock then fixed the web property up by getting more traffic to it, converting more customers and systemizing processes to create appreciable value. He sold it at a good profit. It’s kind of like fix-n-flipping in the real estate investing community. However, he didn’t jump feet first into this line of work. In fact, it took him nine months to pull the trigger on the first deal he did because he wanted to make sure to find the right deal. That first one was an undervalued marketing site. He says that is one of the best types of online businesses to buy when starting out. Online drop shipping business are also a good way to get into this business. So, how does Jock find these undervalued pieces of virtual properties (a.k.a., websites)? Just like in real estate investing, he looks for trends, he talks to brokers and sellers, and then identifies areas of growth opportunity. He says the biggest cause of an online business’ undervaluation is its conversion rates. Traffic is second. Margins are third. As a former accountant, Jock knows his numbers, especially when it comes to valuations of online businesses he considers purchasing. Make sure you have a pencil handy when listening to this truly unique Cash Flow Diary podcast episode. This is a whole new arena of entrepreneurial buying and selling. There are many similarities between what Jock does and what real estate investors do. That includes getting seller financing and buying-and-holding strategies! Today Jock runs his brokerage company and owns a couple of businesses himself, which are in a growth and expansion mode. He says he looks forward to what the future holds as he ramps up his business model. In this interview he tells us exactly what we need to get into this type of business, including the due diligence you need to conduct. Learn more.