Domain investing legend Rick Schwartz has announced a $1.225 million lease-to-own deal on HurricaneDamages.com, a domain he hand-registered in 2004 for just $35.
35,000x Return on Investment
The “Domain King” revealed the transaction on his private X account, writing: “Inked a deal this morning for a lease with option to buy on a $35 hand registered domain from 2004; HurricaneDamages.com – $1,225,000 BOOM!”
The 21-year hold from registration to seven-figure exit exemplifies Schwartz’s patient investment strategy and conviction in premium domain values. Many investors would have sold HurricaneDamages.com for $10,000-$20,000 during the holding period, but Schwartz’s discipline delivered a dramatically higher return.
Category-Killer Domain Value
HurricaneDamages.com targets the insurance, legal, and disaster recovery sectors where individual property damage claims routinely reach tens of millions of dollars. The exact-match keyword combination positions the domain as a premium asset for companies operating in hurricane-prone regions, particularly Florida where insurance disputes and litigation continue to escalate.
The timing proves opportune as hurricane-related property damage claims and legal battles over insurance coverage denials have intensified across southeastern United States markets. The domain’s commercial relevance to a multi-billion dollar industry sector justified the seven-figure valuation.
Lease-to-Own Structure
The LTO arrangement provides strategic benefits for both parties. Buyers gain immediate operational use while spreading acquisition costs across multiple fiscal periods, reducing upfront capital requirements. Sellers retain ownership security while generating immediate revenue streams, with purchase options preserving upside potential.
LTO structures have gained popularity in high-value domain transactions, offering flexibility and risk management that traditional purchases cannot match. The deal allows the buyer to deploy the domain immediately while financing the purchase over time.
Track Record Continues
The HurricaneDamages.com transaction extends Schwartz’s pattern of seven-figure domain sales. Recent deals include BestOdds.com for $1.025 million (closed December 2024), Candy.com for $3 million plus royalties and equity retention, and the landmark Men.com sale for $1.32 million in 2004.
Schwartz pioneered creative transaction structures including equity participation, royalty agreements, and lease-to-own arrangements that maximize both immediate monetization and long-term value capture.
Investment Lessons
The deal validates core domain investing principles: identifying high-value commercial categories, holding through multiple economic cycles, and resisting early lowball offers. Schwartz registered HurricaneDamages.com years before hurricanes Katrina, Sandy, and recent severe Atlantic seasons drove public awareness of property damage issues to current levels.
While premium one-word domains were largely registered decades ago, the transaction demonstrates that two-word combinations targeting specific commercial categories can still deliver exceptional returns when holders exercise patience and conviction.
At 70, Schwartz continues influencing the domain industry, managing a portfolio he values above $750 million and sharing transaction details that provide transparency in an industry where many deals remain confidential.
