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

[comicwiz]

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

 

I sent you a PM. I like the idea and the concept sounds logical. I do think however that you would need to consider branching out to other collectible categories with a certification model in place, and/or possibly look at ungraded items as well. Accepting graded stuff alone, I believe there would be too much inclination for people to seek out an alternative way of selling their item (i.e. local eBay consignors, auction house (some offering advances), etc.). I personally feel you would need to develop a network of buyers ready to pick-up items sold to you, and in offering a one-stop brokerage model as well as a venue to sell to outright, you'd in turn make your idea a unique offering.

[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.

 

You need to get yourself an intern. Or three.

That would require a certain level of trust in said individual(s) to put forth the effort to make sure things are done right and researched properly. Somehow I doubt I can push my OCD that far.

[budsbundy]

The owner of my LCS already does this.

He had a FF#5 in on loan this summer that I was drooling over, and hoping the loan taker would default on so I could get it, but no, guy paid off his loan and got the book back.

[ChrisInBaltimore]

Would you need some kind of license to issue "Loans"?

[mintcollector]

Would you need some kind of license to issue "Loans"?

 

Already stated. This is where the problem may lie. There are virtually no online pawn brokers for a reason. When you apply for a pawn brokerage license it is generally for one municipality. These licenses are also limited and expensive. I do not know how it would work on the internet, but I would imagine there is a reason no one has done this before; or few individuals are. I believe Spectrum Currency offers 'loans' of this magnitude for coins and currency. It may be beneficial to visit his website. I do not remmeber if this is 100% accurate however.

 

I would strongly urge you to seek the advice of several lawyers. Seeking advice from a comic book forum is a good way to guage interest, but you also just put your own idea in the hands of several potential competitors.

 

Just my two cents...

 

'mint'

[comicwiz]

Already stated. This is where the problem may lie. There are virtually no online pawn brokers for a reason.

 

One of CGC's advertisers sounds a lot like an online pawn broker

[Junkdrawer]

You will need a license to operate a pawn shop. You just cant open one up anywhere you so choose. Operating from your home in a private kind of way may be borderline illegal. I'd seek professional advice before accumulating millions of dollars (FMV) of other peoples property in your home vault. Double check with your insurance man for protecting other peoples property.

[letsgrumble]

Here's a scenario. I have a number of books that I haven't been able to sell for years. They have a value of $10K, though I have $2K invested in them. I use your service, get $5K, and never plan on paying you a dime. Those books are now your problem and I just made $3K using your service.

 

Here's another one: I have 10,000 moderns that are valued at $1,000. I drop them of at your place, pay $20 in interest per month, and I'm saving bigtime on monthly storage fees.

[comicwiz]

Here's a scenario. I have a number of books that I haven't been able to sell for years. They have a value of $10K, though I have $2K invested in them. I use your service, get $5K, and never plan on paying you a dime. Those books are now your problem and I just made $3K using your service.

 

Here's another one: I have 10,000 moderns that are valued at $1,000. I drop them of at your place, pay $20 in interest per month, and I'm saving bigtime on monthly storage fees.

 

Good points. Though I think at some point these are all scenario's where operational and acquisitions blunders can be mitigated, or where a deal can be achieved in a way where it's economical and beneficial for all people involved.

[lscomics]

Here's a scenario. I have a number of books that I haven't been able to sell for years. They have a value of $10K, though I have $2K invested in them. I use your service, get $5K, and never plan on paying you a dime. Those books are now your problem and I just made $3K using your service.

 

Here's another one: I have 10,000 moderns that are valued at $1,000. I drop them of at your place, pay $20 in interest per month, and I'm saving bigtime on monthly storage fees.

 

Good points. Though I think at some point these are all scenario's where operational and acquisitions blunders can be mitigated, or where a deal can be achieved in a way where it's economical and beneficial for all people involved.

A service like this also wouldn't be required to make a loan on books just because they're offered too. If books that are dead in the market are offered then the amount offered on the loan would be adjusted to compensate for that I would think.

[Waylander]

Would you need some kind of license to issue "Loans"?

 

Already stated. This is where the problem may lie. There are virtually no online pawn brokers for a reason. When you apply for a pawn brokerage license it is generally for one municipality. These licenses are also limited and expensive. I do not know how it would work on the internet, but I would imagine there is a reason no one has done this before; or few individuals are. I believe Spectrum Currency offers 'loans' of this magnitude for coins and currency. It may be beneficial to visit his website. I do not remmeber if this is 100% accurate however.

 

I would strongly urge you to seek the advice of several lawyers. Seeking advice from a comic book forum is a good way to guage interest, but you also just put your own idea in the hands of several potential competitors.

 

Just my two cents...

 

'mint'

 

Don't call it a loan, it's an advance.

[Buzzetta]

It's not called a loan... it is called an "advance"

 

It's not called collecting from someone who defaults... It's called "sometimes people fall up the stairs."

 

Now I know where I have seen this before.

[Chespirito]

It's not called a loan... it is called an "advance"

 

It's not called collecting from someone who defaults... It's called "sometimes people fall up the stairs."

 

Now I know where I have seen this before.

 

Yeahp..its the one about the stoner dude that goes to live with his grandma' and hooks up with his hot-chick boss of his....

[Big Daddy]

Here's a scenario. I have a number of books that I haven't been able to sell for years. They have a value of $10K, though I have $2K invested in them. I use your service, get $5K, and never plan on paying you a dime. Those books are now your problem and I just made $3K using your service.

 

Here's another one: I have 10,000 moderns that are valued at $1,000. I drop them of at your place, pay $20 in interest per month, and I'm saving bigtime on monthly storage fees.

 

I believe he said the books would have to have a minimum value of $1,000 each. So that would eliminate using the service as a storage unit. Also he said that it would be a case by case basis if he was going to do businiess with the individual or not.

[Sal]

Shad, I think you'd also need some sort of proof of ownership by your customer. I don't think it would be too difficult to "launder" a stolen book through your service and when the actual owner finds out you could be in for some legal issues.

[comicwiz]

Shad, I think you'd also need some sort of proof of ownership by your customer. I don't think it would be too difficult to "launder" a stolen book through your service and when the actual owner finds out you could be in for some legal issues.

 

Apart from the schemers who send you an empty box, Sal's point is one of the main concerns with running such a business. Brick and mortar shops are usually using some software that reports items being held for pawn, and being that it is software-based reporting, it is certainly possible that such software could be accessed online. However I would have to think the "global" aspect of running an online pawn shop would require link-ups with International policing and that could be costly if available at all.

[the blob]

"Preliminary research shows very little startup cost"

 

Except the $250K or so folks may want to borrow from you....

[the blob]

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

 

Yearly, it's in the thousands %. It's so high, I honestly can't do the math. Fortunately (unfortunately?) one can only roll the vig over for 4-7 weeks before the contract is "terminated".

 

with that said, i know folks who have gotten way behind with their presumably mob connected bookies and when they held their ground they were not forced into this sort of trap. yes, they had to pay it back, with some interest, but they were not forced to go to a loan shark at 3% a week or whatever. fact is, nowadays if you break someone's arm and they tell the cops and you go to jail. not all of the people who owe are going to be petty criminals who don't want to go to the cops. it's getting harder and harder for the mob to make a living.

 

of course, all bets are off if you're dealing with russians or some non-traditional organized crime. they've got not rules and regulations.

 

 

[mdube16]

There is a guy on the PSA sportscard forum who started an online pawn shop for collectibles. His name is Bobby and the site is epawnmarket.com

 

 

 

 

[mister_not_so_nice]

I know a good outlet when you expand into the OA side of the hobby