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

[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

 

This would become a full time proposition in weeks, and require you to hire staff within months. IT WOULD GROW AT THE RATE WE CHOOSE TO GROW IT.

MANY MAY APPLY< FEW MAY BE CHOSEN.

Suppose someone wont pay interest. THEN THEY LOSE THEIR COLLATEREAL

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

Do you refund the balance. NO.

Who refunds the 3% paypal fee - does the customer have it tacked on. IF THE PERSON NEEDS MONEY TODAY,HE DOES. OTHERWISE A BANK CHECK ARRIVES IN A FEW DAYS.

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? BOOKS ARE SECURED.

Loan sharks have muscle for just that reason. NO, LOAN SHARKS HAVE MUSCLE TO INSURE COLLECTIONS ARE MADE.

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. THATS BS.

Especially if their sole collateral is a 'funny book'. AGAIN, HOW MANY HERE ARE BOOK RICH BUT MAY NEED A CASH INFUSION.

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

But what if no-one buys it. I TRUST MY JUDGEMENT.

You would then be up shizenhousen creek without a paddle. INCORRECT.

Missed some resto? CGC ONLY.

Book stolen? INSURANCE

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

 

Sorry for the caps. Just trying to answer the questions.

[shrunkenhead]

It's an interesting idea. I don't mean this as a diss on Shadroch, but my biggest concern (as a potential customer) would be Shadroch's own revenue stream. It seems to me that somebody doing this kind of business needs to have a healthy supply of cash onhand. If Shad himself was asking for a 15k loan not that long ago, how much is in the bank to cover the loans?

 

If Shad can successfully demonstrate to customers that he's got access to the dough to make things right on the back end, then I say go for it. (thumbs u

[shadroch]

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.

 

That could be problematic. Current hought is that as we would be offering less than the thief could get by selling it to MCS or MH, it should be rare. Also, we will be requiring the borrower to provide a legal id and most likely to submit a notarized application form for the process.

[shadroch]

It's an interesting idea. I don't mean this as a diss on Shadroch, but my biggest concern (as a potential customer) would be Shadroch's own revenue stream. It seems to me that somebody doing this kind of business needs to have a healthy supply of cash onhand. If Shad himself was asking for a 15k loan not that long ago, how much is in the bank to cover the loans?

 

If Shad can successfully demonstrate to customers that he's got access to the dough to make things right on the back end, then I say go for it. (thumbs u

 

 

My current capital situation has improved some as a few CDS have come due, or are coming due and the renewal rates are a joke. One CD currently getting almost 6% was offered a .8 rate for renewal.

Its something I'd start small and go from there. Right now I'm looking at it as a way of increasing the interest I get on my money and offering a helping hand to fellow collectors as oppossed to launching a new career.

No every person who applied would get a loan.

[shadroch]

"Preliminary research shows very little startup cost"

 

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

 

 

Each loan would have a max value. I'm think it wouldn't be more than 20% of available funds, but thats not set in stone. My local pawn shop has a $1,000 limit on a loan. It doesn't matter what the object is worth, the most you can pawn it for is $1,000. As a test run, I bought in two comics- An AF 15 and a GS X-Men 1.

He offerec $1,000.

[brendanb438]

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 believe someone over on the PSA Sports Card forums already has a business up and running doing this very thing and he takes pawns of pretty much anything from the collectible market. I will see if I can dig up some more info for you later. If you need someone to help you design a website for the business my wife has her degree in Graphic Design/Web Design and with how much she hates my comic collecting it would be funny to have her work on a site dedicated to this.

[Bookery]

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 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'

 

Just for fun, I looked into the possibility of a paper-collectibles pawn shop (not internet). Pawn shops are not like ordinary businesses. They require special licensing. It will vary from state to state, but if I recall, in Ohio you have to have $100,000 in liquid cash assets in order to even qualify. You also have to follow certain federal banking guidelines, just like any financial institution. I'm not sure if it's even possible to do across state lines(most banks are sub-divided into state branches or institutions for this reason).

 

I have lots of folks sell me their collections to raise cash only to desire to buy their stuff back a few months later, so it's a plausible enough concept from a consumer angle. Just not sure if the legalities and cash-flow rules make it feasible for any but the really big dealers or collectors?

 

[500Club]

Remember, if you have a good idea that looks great on paper, you need to analyze why no one else is doing it.

There is wisdom here.

[mintcollector]

Please, please research this before heading into this 'full force.' While I am confident you will write a good business plan (one with factual analysis and numbers; not to mention a workable 'exit strategy'); I also would suggest you start by writing a several page in depth summary of what you are attempting to do. This should contain your goals, possible mission and vision statements and how to obtain financing if needed. From there take the time to analyze as many 'what if' scenarios as possible (no matter how ridiculous some may seem). Then I would strongly advise you meet with not just one lawyer, but several (to get a second opinion if needed) based on this idea. I wish you the best of luck and please keep us posted.

 

Kind Regards,

 

'mint'

 

 

[Bookery]

From there take the time to analyze as many 'what if' scenarios as possible (no matter how ridiculous some may seem).

 

In the comic book biz there are no ridiculous scenarios.

 

 

 

[Sqeggs]

[

 

I have lots of folks sell me their collections to raise cash only to desire to buy their stuff back a few months later

 

Do you typically sell their collections back to them?

[Bookery]

[

 

I have lots of folks sell me their collections to raise cash only to desire to buy their stuff back a few months later

 

Do you typically sell their collections back to them?

 

By then they're all worked into the boxes with other collections (or they're buried in the warehouses if I didn't have a chance to get to them). But sometimes they'll start to piece their collections back together again... wth the same copies if they find them, or different ones.

 

But just had a weird scenario this past week. A guy calls up and says he sold us comics a week or two back and wants to get them back. On the phone he can't tell me what they were or how much money was involved... says his kid wants them back, and he'll call back with more info.

 

I look through my records and see there were several small purchases during that time, and I actually may have them still sitting behind the counter unprocessed.

 

He comes in... and it's not one of those. It's a guy who was in a month ago, and sold me a large collection over 4 days totalling several thousand dollars! And he doesn't just want some back... he wants them all back. This includes some silver-age in the $100 or so range, more in the $25 - $50 range, the majority of the collectibles in the $4 - $10 range, and 1,000 comics headed for the buck-bins. He in absolutely incredulous that I don't have them all sitting there waiting for him.

 

Of course, as with any collection, by now the best stuff has sold, the mediocre stuff is worked into boxes, and the $1 books have all been sent across the street to our discount division, mixed in with thousands of other books.

 

I ask him if there are just certain books or runs he wants to complete, does he want any copies, as I may be able to locate him even less expensive ones, does he want reading copies and might settle for reprints? No... he wants those exact comics back... all 1500 or so of them.. even though he doesn't really remember what was there other than a few obvious ones.

 

I do discover that 2 long boxes of his collection (one of the 4 purchases) is still boxed and pretty much intact. Since I hadn't done much work other than unbag them (they had to be cut out of those 20-year old polyethylene bags where the tape and bag had since become one), I sold him those back for only a small amount more than I paid him. But there was nothing I could do about the others, nor did I feel obligated to.

 

After he left, I rather regretted selling him even those two boxes back. I decided there are only two possible scenarios to this odd behavior... either his son looked up a bunch of CGC stuff on the internet and calculated that his raw books were really worth a fortune or the books were stolen (porobably from someone he knew), and the friend/relative found out and wanted them back or else!

 

He was very determined and desperate about the whole thing, so I'm fearing the latter.

 

 

[Bookery]

Coincidentally, btw, I've been playing with the idea of becoming a broke comic book pawn.

 

[ChrisInBaltimore]

I don't think this would be feasible. You would need to look up each state and get a feel for there each individual laws. That would of course be difficult.

 

I think there is a reason that no one has done this before. Are there any pawn stores online? Maybe see how they operate. I have a friend who manages a Mr. Money pawn store. I wonder what he'd say about this.

[comicwiz]

or the books were stolen (porobably from someone he knew), and the friend/relative found out and wanted them back or else!

 

This.

[brendanb438]

Just move the business off shore to somewhere warm and friendly like Costa Rica.

 

They don't care about no stinkin US laws. Now you might get robbed but that is another story.

[roulette44]

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".

 

 

I mis-spoke. A loan shark is at 3%, but its a week.

 

An example of how a loan shark works- a loanshark will give you $1,000.

For that , he gets a $30 a week vig. Thats 3% a week.

For all intents and purposes, he doesn't ever want you to pay back the $1,000. He'd much rather have you on the hook for the $30 a week. If you are a steady payer, he might even give you another $1,000 and then cut your vig to $50 a week.

In my neighborhood, there are many people still paying $50 a week for money they borrowed a decade or more ago. Loan sharks don't take partial payments and the chances of these guys coming up with $2,000 at one time are pretty slim.

Loanshark=3% a week. Kindly comic pawn guy=2% a month.

 

Well, at least you figured it out.....better to be in the Comic loan shark business and charge the full vig!

 

 

[Thomas Nielsen]

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.

 

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.

 

[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.

 

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.

 

 

 

I'd have sent more but the market for StB isn't what it once was. I'm assuming the person isn't flat broke with zero prospects or a loan of any amount wouldn't help.

[shadroch]

Just move the business off shore to somewhere warm and friendly like Costa Rica.

 

They don't care about no stinkin US laws. Now you might get robbed but that is another story.

 

Just keep it on the internet.