Business model of Buying IPv4 and leasing it

[troubled soul]

Do anybody in this business of buying and renting IPv4 ...
what is the process?
What is the top company, service provider or platform can i use ?

Can anybody explain it like I am 5 for this ?

Thanks

 

[gl0betrott3r]

I'm not in the business of buying IPv4, but have worked with networking in the past.

There are two ways of acquiring address space. First, and in our case the less-relevant way is to register with a regional internet registry (RIR) and after you meet the policy and technical requirements you will be put on a waiting list to receive a small subnet allocation. You’d also need internet peering and an ASN for this.

The second and a more suitable way for an investor (instead of a tech company) is to register with a RIR and then simply purchase a subnet from a qualified facilitator and transfer it to your RIR account. Here’s a list of facilitators from an American regional registry Find a Qualified Facilitator

IPv4.Global Is a reputable site from that list, although there are others. Note the $/address price and the total, based on the size of the subnet being sold. After you’ve found what youre after, you will bid and pay for the subnet as well as additional broker/auction fees, and RIR registration fees.

Very important note is that IPv4 addresses also carry a reputation with them based on what they were used for before and who used them. Before bidding on a range make sure those addresses aren’t blacklisted.

After you’re an owner of an IPv4 subnet, you can for example use a platform like https://www.ipxo.com/ to lease and monetize it.

 

[void]

where is the ROI of this type of investment if you don't mind to share your insides a little. If you have a few million euro to throw after it I think it can be good, but to be good you need lot's of customers??

it's a complex business which I'm not actively into at the moment

in general IPv4 address is a scarce (given by the standard itself, limited supply, unwise distribution of massive subnets in the early stages, limited divisibility and inherent inefficiency due to limited size of routing tables) and desirable asset - both thanks to the fact that IP protocol has (for obvious reasons) huge inertia and despite IPv6 is here for 20+ years it made low to none progress in adoption
many will disagree on this but the price of IPv4 subnets speaks for itself
there are many reasons why is that and why it will hardly change any soon (some big businesses like geolocation databases, "cloudflarization" plague, spam/bot/scammer lists, etc. depend on it, all the anti data mining and anti web crawling solutions of all public services are based on IPv4)

as mentioned in the previous post one can rent/sell its subnets (it has consequences) or simply speculate on holding it
ISP providers and VPS hosting companies normally charge from 1 to 10eur per additional address per month... not bad
I personally own only smaller tens of thousands of addresses not bothering with monetization but I know a guy owning 5M addresses and making nice (yet uncertain) profit on it

 

[troubled soul]

Thanks for the answer

I try to search online myself...Do you know any literature or course for this ?
I try to read some online information....
What I understand is

1) You can buy IPv4 from many broker and auction platform
2)After purchasing IP you transfer it to ARIN account .
3) Now you can hold it or lease to make money out of it .


My question is ...Is it easy to get account at ARIN ? What reason you need to give to get account at ARIN for sole purpose of IP investing ?
https://www.arin.net/
Any hardware or ISP bandwidth requirement for just buying and holding IP ?

Thanks

 

[Onassis]

Can anybody explain it like I am 5 for this ?

You are approximately 5 to 10 years too late.

many will disagree on this but the price of IPv4 subnets speaks for itself

The price of IPv4 IPs has started going down due to IPv6 adoption. See the following website for example: IPv4.Global

Adoption of IPv6 increased 15% since 2020: IPv6 – Google

What reason you need to give to get account at ARIN for sole purpose of IP investing ?

That is not a valid reason to open an account. You have to demonstrate a legitimate need for the IPs you are requesting.

 

[ihagatcan]

IPv4 is a great investment imo, I sit on about a /19 of IPv4 space that gets leased out monthly. People pay favorable prices comparative to the annual costs for the prefix. For example, right now each prefix (/24) could go anywhere between $100-$130 USD/month.

Numbers wise, you're talking 32x /24 prefix sizes, at let's say $130/month => $4160/month ($49.9K/yr). According to ARIN's fee schedule (Fee Schedule), that would put you in the "Small" bracket of $2000/year in maintenance costs to ARIN, so, if you leased them all out at $130/month, you'd ROI the annual cost in half a month. The sad part is you'll be paying $311K for a /19 these days at market rates, which is a 6 year return on investment on those costs at current rates.

 

[troubled soul]

IPv4 is a great investment imo, I sit on about a /19 of IPv4 space that gets leased out monthly. People pay favorable prices comparative to the annual costs for the prefix. For example, right now each prefix (/24) could go anywhere between $100-$130 USD/month.

Numbers wise, you're talking 32x /24 prefix sizes, at let's say $130/month => $4160/month ($49.9K/yr). According to ARIN's fee schedule (Fee Schedule), that would put you in the "Small" bracket of $2000/year in maintenance costs to ARIN, so, if you leased them all out at $130/month, you'd ROI the annual cost in half a month. The sad part is you'll be paying $311K for a /19 these days at market rates, which is a 6 year return on investment on those costs at current rates.

How you get Account at ARIN ?
What you tell them "reason" when you open account with them?
Thanks

 

[ihagatcan]

How you get Account at ARIN ?
What you tell them "reason" when you open account with them?
Thanks

You need a few things:

1. Register at ARIN
2. You need substantial presence in the ARIN region, ARIN region also includes Caribbean islands such as Caymans. ARIN's region list: Our Region
3. You need a lawfully, in good standing, registered corporation in the region and an individual of authority in order to sign the agreements with ARIN
4. You create an ORG identifier (cost $150 USD)
5. You then need to acquire IPv4 addresses via purchasing them through a broker or marketplace (e.g., ipv4.global)
6. Once you have acquired them, and they are transferred (there is ARIN fees to pay for it as well), they are in your account