Loans vs Collection
Relaxn
Posts: 1,106 ✭✭✭✭✭
Is there anyone or a firm out there that would provide a loan vs a collection? For instance let's say something comes up and you do not have time to liquidate a collection in order to cover it... Just wondering
Js
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A bank..? I am not sure I fully understand the question.. Are you trying to use a coin collection as collateral? I did an internship at a bank and someone used their collection as collateral and needed an appraisal and then they could borrow on 50% of it.
Just my humble, non expert opinion.................I think that's a good way to get into financial trouble
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
A pawn shop would but the terms might not be all that attractive.
A company called Edelman advertises in the numismatist about making loans
What dollar value are we talking about
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
It is much easier to get a loan against a securities portfolio of stocks, bonds, and mutual funds. In fact, it is very easy to do so.
Contact your financial advisor or broker. You could PM me for details
There used to be a service that set up at shows but I haven't seen them for a while. When I last inquired, it had to be mainstream coins that have a well established value and they loaned only about 50% of the collections "value".
Edelman's does.
Edelmans has a good reputation, although I have never used them for loans (have bought misc. coins from them via eBay).
stacks has some company that does this
What is their per cent of interest?
Heritage will be glad to do it if it is the right stuff.
http://www.cfccoinloans.com/loans.aspx Not sure what happens on the six month loans if they decide the certifieds are in a declining market and they want their moulah.
Thank you.. I knew there were companies...
I have a chance to buy a house but I do not want to tap myself out (sell everything) and the home is a foreclosure thus not qualifying for a loan.... I need 10 or 15k more.
Anyone want to invest in my house 15k at 10%... Lol... j/k sort of.
I will reach out to both companies on Monday.
Thank you
Since you only need $10k-$15k, I wonder if you could obtain a bank loan using the land as collateral without considering the value of the home if it doesn't meet loan requirements. I think the interest rate would be more favorable to you. Also look into a FHA 203(k) loan to rehab the property. You can use the value of the home after repairs, but these can be a pain if the home requires significant repairs (i.e. certain structural changes will require an engineer and a lot of paper work).
Don't sell yourself short - government-assisted or even near-conventional or near 100% financing may be more available than you think. There is no shame in making a dozen applications (or more) to various conventional lenders, especially at the end of the month when they are trying to hit their quotas (excuse me, goals). Mortgages is just another business, and the people in mortgage companies gotta make sales.
The only downside might be that too many recent inquiries on your credit bureau report could impact your score, but that is not as big as it used to be.
Just be careful if you apply for multiple loans that do hard checks. When you buy a home and the hard inquiries are within a certain time frame, these supposedly only count as one inquiry; however, some lenders are nasty about the number of inquiries even if you have a clean credit history and good FICO score. Things don't always work out the way they should.
I agree, but have been told that everything is looser than it used to be in the mortgage business.
The people in the real estate business always think that taking the property back will cure every deficiency.
I am so close... we busted our butt the summer and was able to put away 70k.. we tried to keep the homes we looked at under that. Then a 3/2 on 3 acres came up for 90k. We offered and have an agreed price. I was supposed to have one more big job but it was pulled. I can sell my pm's but I am still short. I don't want to fire sale my numismatics in a rush to hit our goal... so, I was looking for options.
We are close.
Thanks for everyone's feedback.
JS
most companies I have heard charge 1% per month.
You can get the money through more traditional channels, guy, just ask lots of places. Demonstrate your ability and some lender will buy in. Good luck.
Beware of the tax ramifications of selling your bullion versus tax deduction for mortgage interest. I know when buying a REO the firm selling doesn't want any contingencies (e.g. financing) sometimes, but be careful to not leave any stone unturned. Given the small amount needed, you might be able to negotiate something.
I'll give ya 10k for 5% per month
Just find a coin shop in your area that is licensed to do pawn. On larger loans 2500+ the rates are usually negotiable, at least they are in California
Www.killermarbles.com
Www.suncitycoin.com
In my State, the maximum charge on pawned goods is $20 per $100 per month, payable monthly, and every licensed pawn broker charges exactly that, no matter how they divide it into "interest" and "fees". And this is for what should be a risk-free loan if the collateral is decent, sufficient and not stolen. Perhaps the rate goes down for larger loans (I really don't know about larger amounts), but I don't think you want to have anything to do with "pawn". Pawn is for when you can't make your rent or for when you haven't eaten for 48 hours.
A straight-out sale of your stuff often results in less future distress than the cumulative charges that you pay on pawn loans.
I strongly urge you to go for a conventional mortgage and ask each potential lender whether or not they can also do a "junior mortgage", a "bridge loan" or a "side note" for six months or a year. Offer to pay the interest monthly and ask that the smaller loan mature with a single payment of loan principal when you think you will finally have the extra funds. If you ask at enough lending institutions, somebody will eventually say "yes".
Put it on a credit card! I bought a $20,000 car with my credit card in the past! Then you would have the flexibility to either find a more reasonable loan or possibly pay it off quickly(which was what I did with the car).
CFC - a subsidiary of Spectrum - was quoted 7.1% about a year ago. They are very rigorous but fair in appraisal value.
However, the amount you are interested in borrowing is likely rather small (by most banking standards).
Have you talked to your accountant? They often are aware of possibilities beyond those of most laymen.
I personally like the idea of a car loan or credit card on a short-term basis.
The heritage affiliate firm here in cary, nc does it, ive seen them do it a few times. For about a 1/3 of real market value.
also , some bank here in town has done it before because I had to value appraise It for the bank in real numbers. Have no idea of the terms , as I was not privy to that info
When I was in business, I pawned many coin collections.
The good ones never defaulted.
Any coin shop that doesn't try to get a pawnbroker license is missing a great source of income.
In California 2.5% per month can be found at pawn shops.
Www.killermarbles.com
Www.suncitycoin.com
I always thought it was a great business model. Loan money at 50% of value. Almost no chance of getting stuck if you value coins conservatively.
The weird thing is that I tried to get pawnbrokers to go to the ANA programs at pawn conventions and they weren't even interested.
Even with my being able to tell them HOW they could guarantee against losses.
Frustrating.
Also consider borrowing more than you need, and keep a cash (not PM, not collectibles) reserve. Think of it as insurance / optionality on the assets you used as collateral, and on your credit rating, depending.
I would never go to zero cash if I could in any way help it.
There are several creative ways to handle the situation (some listed above) without using your coin collection. A good financial adviser should be able to quickly point to a less painful method. Cheers, RickO
I have a client that used CFC for a loan a few years ago, I think they loaned 50% Loan to value. The interest rate seemed very fair for this type of loan, it was around what the Col stated. The client redeemed his coins and was very happy with the transaction.