What is domain real estate and how can you make money with it? Well as the title says, its real estate for your domains. You can buy and or sell domains that you own. The best thing you can do is to NOT just go out and register a domain name and expect it to sell for thousands of dollars.
If you expect to be able to buy a domain name that you just registered and sell it, your crazy! In order to sell a domain, and have it be worth anything it either has to be brand-able (hotels.com, cars.com photography.com), or it has to be worth something to begin with. A domain is worth something, usually when its already developed into an existing website.
This isn't always the case, but more often than not it is. Example, I bought a domain at the beginning of 08 for $9.99 on NameCheap, just because I was curious about this domain real estate thing. On sites like estibot it was worth zero, it had no back links, no rank, brand new. So I decided to get it developed, which is one of the most important things for any domain name.
With in 7 months it went from being worth zero to being worth over $1500. Again not that much money. But by having it developed and getting back links to it, it was raised from PR0 to PR3 in just a month, and every single week the price goes up $10-$20. This website isn't anything spectacular. Its just a one page, developed joke site. So imagine how much a domain could be worth if you really got involved in developing it!
Once you get it developed, and its actually worth something to someone (an individual or a company) you can sell this domain for money. Domain real estate follows the buy low sell high rule. You could easily buy a domain for $5000 and sell it in a few months or a year for triple that amount, if you work at it. Or in some instances like mine you can register a domain name, develop it, market it, get traffic to it, and sell it in a year for a few grand.
And yes, people do this for a living and actually make really great money at it. The real point is having "an eye" for a good domain name. The rules have sort of changed over the years, but it used to be that the domain was considered worthy if it was brand-able, one worded (cat, dog, art, photography, truck, car, fabulous etc), and if it was a .com extension. Now this still does come in hand when doing domain real estate, but there's also a new rule. A domain name may not always be worth very much to an individual, but it might be worth a lot to the end user. An end user, is someone that is actually going to use the domain and not resell it like you may have.
So StumpSomeone may not be worth anything to you or me, but to someone interested in having a joke website, they might be willing to pay a pretty penny for it, sometimes its good to sit on a domain for awhile rather than just sell it right away. Find the right buyer. But don't ask for a price that no one is willing to pay because then you will never sell the domain and that's NOT what you want. There are tons of sites you can find more info on about domain real estate. Here are a few really good reference and resource sites you can take a look at; NamePros, Sedo, Moniker etc.