I'm playing with the idea of becoming a comic pawn broker.

[shadroch]

You would need considerable start up cash.What if someone wants to pawn a 9.0 AF 15?

 

 

There would be a maximum loan value on any one book .As a start up, I don't see too many people pawning books $100,000 plus books. I'm thinking of mid-five figures as a starting sum. In the event of some higher value books, once the business is up and runnnig, attracting new capital shouldn't be difficult.

This is intended more for the average hobbyist who might be book rich but cash poor. Not the Uber collectors or the BSDs of the industry.

[Jiminy_Cricket-migration]

You would need considerable start up cash.What if someone wants to pawn a 9.0 AF 15?

 

 

There would be a maximum loan value on any one book .As a start up, I don't see too many people pawning books $100,000 plus books. I'm thinking of mid-five figures as a starting sum. In the event of some higher value books, once the business is up and runnnig, attracting new capital shouldn't be difficult.

This is intended more for the average hobbyist who might be book rich but cash poor. Not the Uber collectors or the BSDs of the industry.

 

So your target clientele are white males between the ages 18-28, and recently divorced white males?

[lscomics]

Me and a friend actually discussed this same idea a couple of years ago. You may want to check to see if there are any legal guidelines you need to follow. I believe the amount of time a loan can be made for on an item may vary from state to state and in a venture like this could become complicated if the loan is being made across state lines. Logically in a case like that you would be bound by the laws in your state but I'd certainly want to know if there are loopholes in other states laws that would allow for any potential legal action that forces you to return the book even if they default. High dollar books could be a problem too, over a certain amount aren't loans of any kind federally regulated?

[shadroch]

Well, you need to be 18 to sign a valid contract, so my targets would be anyone of legal age with a CGC book or books worth at least $1,000 FMV.

I obviously reserve the right not to do business with anyone I choose.

[oakman29]

How about I sell you my whole collection for a dollar,then divorce my wife.Then after the divorce you sell me back my collection for two dollars.I'm happy my wife doesn't get my books and you double your money. (thumbs u

Now that would be a service.

[shadroch]

Me and a friend actually discussed this same idea a couple of years ago. You may want to check to see if there are any legal guidelines you need to follow. I believe the amount of time a loan can be made for on an item may vary from state to state and in a venture like this could become complicated if the loan is being made across state lines. Logically in a case like that you would be bound by the laws in your state but I'd certainly want to know if there are loopholes in other states laws that would allow for any potential legal action that forces you to return the book even if they default. High dollar books could be a problem too, over a certain amount aren't loans of any kind federally regulated?

 

Your input is appreciated. I am looking into it and so far I have not come across any obstacles too big to overcome.

[lscomics]

Me and a friend actually discussed this same idea a couple of years ago. You may want to check to see if there are any legal guidelines you need to follow. I believe the amount of time a loan can be made for on an item may vary from state to state and in a venture like this could become complicated if the loan is being made across state lines. Logically in a case like that you would be bound by the laws in your state but I'd certainly want to know if there are loopholes in other states laws that would allow for any potential legal action that forces you to return the book even if they default. High dollar books could be a problem too, over a certain amount aren't loans of any kind federally regulated?

 

Your input is appreciated. I am looking into it and so far I have not come across any obstacles too big to overcome.

I like the idea. If you go forward with it I hope it works. I was honestly just too lazy to do all the research into the potential legal pitfalls myself.

[shadroch]

Me and a friend actually discussed this same idea a couple of years ago. You may want to check to see if there are any legal guidelines you need to follow. I believe the amount of time a loan can be made for on an item may vary from state to state and in a venture like this could become complicated if the loan is being made across state lines. Logically in a case like that you would be bound by the laws in your state but I'd certainly want to know if there are loopholes in other states laws that would allow for any potential legal action that forces you to return the book even if they default. High dollar books could be a problem too, over a certain amount aren't loans of any kind federally regulated?

 

Your input is appreciated. I am looking into it and so far I have not come across any obstacles too big to overcome.

I like the idea. If you go forward with it I hope it works. I was honestly just too lazy to do all the research into the potential legal pitfalls myself.

 

You need to get yourself an intern. Or three.

[Comic Book Guy]

I like the idea and think it has great potential. (thumbs u

 

Honestly, there are times where I could use an extra grand or two for a convention and would be happy to borrow against a few of my personal keepers, knowing that the money I make off the money borrowed would cover what I owe and then some. Seems like a win, win.

 

 

[pickycollector]

How about I sell you my whole collection for a dollar,then divorce my wife.Then after the divorce you sell me back my collection for two dollars.I'm happy my wife doesn't get my books and you double your money. (thumbs u

Now that would be a service.

 

 

[dupont2005]

Comicbook loan shark....I think you would have the market cornered

 

 

Loan sharks charge 3%.

I'm at 2%. Less than a payday loan store.

 

 

Loan sharks only charge 3%? I honestly thought it would be much higher than that

Mercedes Benz Financial Services charges me 7%

[shadroch]

Comicbook loan shark....I think you would have the market cornered

 

 

Loan sharks charge 3%.

I'm at 2%. Less than a payday loan store.

 

 

Loan sharks only charge 3%? I honestly thought it would be much higher than that

Mercedes Benz Financial Services charges me 7%

 

7% a year. is slightly better than 3% a week, methinks.

[shadroch]

I like the idea and think it has great potential. (thumbs u

 

Honestly, there are times where I could use an extra grand or two for a convention and would be happy to borrow against a few of my personal keepers, knowing that the money I make off the money borrowed would cover what I owe and then some. Seems like a win, win.

 

 

 

eggzactly

[oakman29]

How about I sell you my whole collection for a dollar,then divorce my wife.Then after the divorce you sell me back my collection for two dollars.I'm happy my wife doesn't get my books and you double your money. (thumbs u

Now that would be a service.

 

 

[dupont2005]

Comicbook loan shark....I think you would have the market cornered

 

 

Loan sharks charge 3%.

I'm at 2%. Less than a payday loan store.

 

 

Loan sharks only charge 3%? I honestly thought it would be much higher than that

Mercedes Benz Financial Services charges me 7%

 

7% a year. is slightly better than 3% a week, methinks.

Oh, that changes things. I was thinking of looking up the local loan shark to refinance

[shadroch]

As several people have PM'd about more information, here is an example of how I envision it working.

Lets say you need $2,000 for a car repair and just don't have the money.

You contact me and we go over the CGC books in your collection.

Using a formula i'm working on that will include GPA but will not be eclusively GPA, I determine that your 9.4 copy of Savage the Barbarian #1 has a FMV of 1800 and your copy of The Bucktoothed Blunder #6 is worth $1200.

You mail them to me at your expense, and upon reciept I send you a paypal payment of $1500. Each month, I add 2% to the loan. You can pay it off anytime for the amount owed, plus 2% a month plus a small($25 or so) handling fee plus exact postage and the book is returned to you. If at the end of a year, you have not paid me, I offer you two options. Option 1) You pay me only the interest due-$360 plus the $25 handling fee in this case, and we extend the loan the loan another year at the same terms, or option 2) You pay nothing and the book becomes mine.

 

This works best if you fully intend to redeem the book. I will be checking the Buy prices from MCS and MH and assure you you will be able to sell the book to them for more than you'll get with me. If you want to sell your books outright, this is not the service for you. If you want to keep your books but need a short term loan, this works for both of us. There would be a minimum charge, as well. It might be a minimum of three months even if you redeem after one month. Those are the kind of complications that still need to be fully vetted. My local pawn shop charges 10% minimum, even if you redeem the very same day.

This service is not currently available

[Logan510]

Comicbook loan shark....I think you would have the market cornered

 

 

Loan sharks charge 3%.

I'm at 2%. Less than a payday loan store.

 

 

Loan sharks only charge 3%? I honestly thought it would be much higher than that

Mercedes Benz Financial Services charges me 7%

 

I shed a single tear just for you buddy

[mintcollector]

Both here and on eBay, I keep seeing people saying they hate to sell XXXx book but they are in need of cash- job loss, car breaks down, whatever.

So my thoughts are to open a business where the owner of the book and myself can come to an agreement on an amount to loaned on a book or books.

Buyer sends the books, I send a check or make a paypal payment and charge 2% a month interest for up to a year. After a year, he repays the original amount plus interest due and a shipping/handling fee and reclaims his book or the account is closed and the book is foreclosed on.

Books would be fully insured while in my possesion and the contracts would be drawn up to be fully legal and binding on both parties.

I don't see this as being a huge business, but with bank CDs paying under 1% a year, I think the niche might be big enough to make it profitable. Preliminary research shows very little startup cost and the insurance costs would depend entirely on the books in inventory, changing quarterly or even more frequently.

Surprisingly, this type of operation seems easier to setup as a mail operation than in person to person dealings in a storefront.

One thing I have settled on is all mailings go thru the US Postal Service so both parties are fully protected against any sort of mail fraud..

 

I would look into this carefully and get a good lawyer. I believe you may have to obtain a pawn license. If this is even awarded, it would cost thousands upon thousands of dollars, if not more, That being said, I am unsure as I never consulted on how to do something like this online.

 

The reason you don't see too many online pawn shops is due to this reason alone. Remember, if you have a good idea that looks great on paper, you need to analyze why no one else is doing it. I do know of several coin and currency dealers that do offer a similar service, but there were a lot of roadblocks to starting and the fees we high.

 

Be careful engaging in this without crossing every 't' and dotting every 'i.'

 

I know of no antique dealer that offers any similar service online. There has to be a reason for this.

 

I wish you the best of luck. Please keep us posted.

 

Respectfully,

 

'mint'

[Buzzetta]

Many times, I believe that the statement, "I hate to part with the book, but times are tough" is nothing more than a sympathy grab.

 

Since I assume that this would be a home based operation, your overhead is minimal, if anything assuming that anything that you are left with you will be able to sell at or above your financial interest in the book.

 

Go for it...

[Beige]

As several people have PM'd about more information, here is an example of how I envision it working.

Lets say you need $2,000 for a car repair and just don't have the money.

You contact me and we go over the CGC books in your collection.

Using a formula i'm working on that will include GPA but will not be eclusively GPA, I determine that your 9.4 copy of Savage the Barbarian #1 has a FMV of 1800 and your copy of The Bucktoothed Blunder #6 is worth $1200.

You mail them to me at your expense, and upon reciept I send you a paypal payment of $1500. Each month, I add 2% to the loan. You can pay it off anytime for the amount owed, plus 2% a month plus a small($25 or so) handling fee plus exact postage and the book is returned to you. If at the end of a year, you have not paid me, I offer you two options. Option 1) You pay me only the interest due-$360 plus the $25 handling fee in this case, and we extend the loan the loan another year at the same terms, or option 2) You pay nothing and the book becomes mine.

 

This works best if you fully intend to redeem the book. I will be checking the Buy prices from MCS and MH and assure you you will be able to sell the book to them for more than you'll get with me. If you want to sell your books outright, this is not the service for you. If you want to keep your books but need a short term loan, this works for both of us. There would be a minimum charge, as well. It might be a minimum of three months even if you redeem after one month. Those are the kind of complications that still need to be fully vetted. My local pawn shop charges 10% minimum, even if you redeem the very same day.

This service is not currently available

 

This would become a full time proposition in weeks, and require you to hire staff within months.

Suppose someone wont pay interest.

Is your contract so 100% binding that you can claim ownership to sell his book to recoup your lost interest?

Do you refund the balance.

Who refunds the 3% paypal fee - does the customer have it tacked on.

Lastly, and I'm 100% serious, whats to stop someone coming around to your place of business,kicking the snot out of you and just taking their books back?

Loan sharks have muscle for just that reason.

As do payday loan companies, and 1 day loan outfits.

People who need instant loans generally aren't people you want to lend money to.

Especially if their sole collateral is a 'funny book'.

Oh, and you may value a book at $1200.

But what if no-one buys it.

You would then be up shizenhousen creek without a paddle.

Missed some resto?

Book stolen?

Short-term, high interest loans are for big boys.