How would you handle this?

[telerites]

Shad

 

It may have been mentioned but I couldn't find it. Do you get the terms of the loan in a signed agreement or at least something documented in writing?

 

I assume so, but was curious.

[JazzMan]

Just start a sales thread and miraculously the problem will solve itself.

[PIR8]

I think the fact that you help people out with loans when their really isn't anything it in for you is admirable. Sorry to hear that you got bit though.

 

Personally I would keep the books. The guy might not be happy, but he certainly agreed to that resolution in the event that this very thing happened.

 

Also, I think buying comics while on a loan is technically fine, but doing so in a marketplace where those who you owe money also frequent is in pretty bad taste (imho).

 

Hope everything works out for you.

[Balham's Finest]

Take the book. If nothing else, being "soft" on the boardie in question could make it more likely that somebody messes with you in future...

[Dr. Balls]

You satisfied the terms of the agreement. Enjoy your new Avengers books.

 

+1

 

You held up your end of the bargain, it's not your responsibility to remind others of thier financial committments.

 

I know several pawn brokers - and they have great customers who borrow regular, pay their loan and fees, and in the end both parties are happy. There's other people who lose stuff in pawn all the time, I'd just chalk it up as a win. It's just how the business works, and it looks like that's what happened here.

 

But, I think the pawn-for-books thing is cool.

[Westy Steve]

Fun facts. Loaning $950 for a $1000 payback a month later is charging around 5% a month, which compounds to more than 60% annually. So it's a bad idea to do something like that long term.

 

That being said, loaning money like that is exactly what pawnshops do...and have been doing for hundreds of years. Nothing wrong with it. In a pinch, it could be a good idea. Like say you had a bill pop up unexpectedly that would have a big penalty payment you just couldn't handle. There are times when borrowing money makes sense, even at a higher interest rate, in the short term.

 

As for investments. If the secret is to buy low and sell high, then it may be an excellent time to buy rental property. Low interest and low prices. There is a lot of research you should do on the front end, but the return on it are higher than you think...as a percentage...if you understand the mechanics of it.

 

Example: Say you put $25K down on a $100K townhouse. Then charge rent that pays out $50 per month more than your payment (after expenses!). Then you're making 2.4% on your $25K investment. But the townhouse should increase in value with inflation (in ordinary times). That's $3k/year on a $25K investment or another 12%. Lastly, you get to write off the depreciation of the structure, which is about 4% of the structures value per year...say 4% of $75,000 in this example. That's a $3,000 write off, which is about another $600 in the 20% tax bracket...which equates to $600/$25K, or another 2.4%. So 2.4% plus 12% plus 2.4% equals 16.8%.

 

More millionaires are made through income-producing property than another other way. Realize, also that you don't have to pay property off to benefit from it. If you buy a shopping mall for $100 million and hold it for 10 years, and it increases 3% a year, then if you sell it, it is worth more than $130 million. As long as you can service the payments with the rents, you can make $30 million...yet you never paid anything off. See? It's not about paying it off...it's about how much property you control. That's how it's done. ANYWAY, more detail than you wanted. But I can tell you that rentals really screw with your cash flow. No such thing as "normal"....you have to live your life like running a business.

 

Steve

[RCheli]

I think he said the duration of the loan was 6 months, not 1, which drops the interest rate down significantly.

[Balham's Finest]

Also, 5% per month compounds to approx 80% per year, not 60% (that's the non-compounded rate).

[Westy Steve]

I think he said the duration of the loan was 6 months, not 1, which drops the interest rate down significantly.

 

Whoa. "Does not pay attention in class" is something I've seen on my report cards my whole life. Completely missed that. 10% a year or so is really fair. Almost too fair given that its a pawnshop style loan....I think I'd charge more!

 

And to another poster...yeah...I was neglecting compounding in my erroneous calculation...just a thumbnail I did in my head.

[joe_collector]

So what happened?

[RCheli]

I think this is actually a good idea and the fees/interest are decent.

 

I can only assume that an agreement was drawn up between the two parties (while $1,000 isn't a HUGE amount, it's certainly enough to require something like this).

 

And as shadroch knows value of the comics (through GPA), people are more likely to get a better price than from a pawn shop.

[Chaseman210]

If the guy read your first message without responding and has ignored the other three, I would go ahead and sell the books. He knew the terms and knows you've contacted him about it. You've been more than fair.

[chrisco37]

He taught me the best way to get rid of a pest is to loan him $20. The guy will avoid you forever. It really works.

I've found that to be true as well.

 

BRILLIANT! I wonder if it would work on certain boardies?

 

Almost 2 years ago, I made a small loan ($180) to someone in my wife's family. It was a Monday or a Tuesday, and they said they would pay me back that Friday. I never rec'd anything other than a few early "I haven't forgot about you's"

 

At first I was pissed but, looking back, it may have been the best $180 I ever spent because, while they are constantly in some financial crisis (always of their own doing) and always needing to borrow money from someone, they haven't bothered to ask me.

[lb jefferies]

If he had a buyer he could have sent Shad his $1000 with the proceeds and Shad could have mailed the books to the buyer.

 

That would have been an elegant solution although a little work on Shad's part.

 

Handing the collateral over makes no sense unless it's someone you trust implicitly.

 

This

[techtre2003]

If you have money to spend on comics you have money to pay a debt.

 

If you have money to spend on comics you don't need a loan.

 

I'd sell my favorite comic before putting it up for collateral, and I did exactly that.

 

May I ask why you would rather sell it than put it up for collateral? I'm not arguing with you, just trying to understand why. Lets say you were struggling and had an unexpected expense. You'd sell your comic rather than use it to get a loan. Why?

For two reasons. One is, what if I'm unable to pay the debt? Then I lost the comic for less than I could have gotten. I know my income, but I don't know unforeseen emergencies and expenses. So I'd rather just not take that loss.

 

The second is principle. If I borrow money it means I'm in a real jam, like no food or car is about to be taken away and both credit cards are maxed out. You can bet I'd be asking from the library computer, after having sold mine and cancelled the internet.

 

 

Okay, fair enough. Different folks have different styles. I was brought up borrowing and lending money. My Uncle used to do it on a daily basis until his plea agreement. He taught me the best way to get rid of a pest is to loan him $20. The guy will avoid you forever. It really works.

 

I'm like Dupont. If I'm in the position that I have to sell my possessions in order to raise money for an unseen expense such as a car repair; chances are something else is going to pop up soon down the road. For example, I blow my transmission and get a loan from you. 2 months later the loan is paid off. Then my water heater goes out so I need some cash again. So I'm right back in the same place. It makes more sense to me to sell the book, get the car fixed and then start putting away a nest egg for the next thing that comes up.

 

I'm a Spider-man collector but I know I'll never own a ASM #1 unless my financial situation drastically changes. Sure I could make time payments and eventually buy one but I just can't justify having that money tied up in a book like that. It would be something that if I got into a jam I know it would be the first thing to go.

 

But, like you said people think of money differently and that's not necessarily wrong; just wanted to add my 2 cents since you were asking why. And since people are going to get loans anyway, I do think it's a nice service you are offering and it sounds like you are being more than fair to your customers. (thumbs u

[incoflip]

Why do you even bother to do this in the first place? Seems like a pain in the A, and you aren't making any money off it.

 

I do it so that fellow collectors who fall on hard times don't have to sell their books at fire sale prices when something comes up. One guy needed a transmission and was going to sell his grail book. Another was selling a few books to take their kids on vacation. I was able to help them, and make a few coins on the side. This is, after all, a community.

 

 

Total respect man, seriously !! Lot of guys talk it...seems you actually follow thru

...PROPS

[stanley1883]

You just gave me an idea......hmm I gotta work out the kinks but I think I just got an idea for a business model....

[MatterEaterLad]

I know a guy who knows a guy, who knows some people...

[Zacreth]

so after reading all of this, and I think it's awesome that Shadroch provides this to people that don't want to sell their grails just to pay emergency expenses that pop up and the only option is to sell it to a dealer and have to rebuy it later on.....

 

I would like to say on the slabs when you post them (thumbs u

 

(pending scans...haha)

[Supa-Bad-Mofo]

 

Most people have a hard time handling loans and debt though. That's why we have the credit crisis we have been in for 6 years now. Human nature these days generally doesn't balance it well with real life. I'd count myself in that boat.

 

While your intentions are honorable, I don't feel that buying comics while owing someone else money is a very good decision - unless of course he's happened across something that is going to make him a killing.

 

 

I owe the bank money for my house, student loans, vehicle, etc. I still buy comics...