Matchking Man
Member
How much would you loan a co-worker (Not a buddy) against a Model 29-4 95+% condition, blued 6 1/2" factory grip? I'm figuring a 50% chance he'll pay the loan off.
Not your typical "What's it worth?"
- Thread starter Matchking Man
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I'd gladly loan $450-$500, given that I knew him well enough.
OP
Matchking Man
Member
He's not a bud by any stretch but if I'm going drop the cash to help him out, I'd like to get my money back one way or another. I was thinking $500 was a safe bet also.
For sure, I'd be holding the gun as security..
OP
Matchking Man
Member
PeteMitchell
Member
Well the Pawn Shop has overhead to worry about. Not to mention cost to sell or transfer. Etc.
Regardless, I think you're definitely safe offering $500. But I'd look up some pawn shop type paperwork to make him sign, if you haven't already. At the very least, a hand written contract. Just to cover yourself.
You also might want to add a clause stating that (A) you're allowed to shoot it and (B) if you fall in love with the gun than you can refuse the cash back. haha!
coltle6920
Member
"A fool and his money are soon parted."
A coworker who is not your buddy wouldn't get my money and a 50-50 chance of repayment doesn't cut it either.Personally I'd rather buy the gun myself to secure it and then let the coworker make payments before transferring it to him.
He'd have to be a long time friend of mine (even outside of work) before I would even consider it.It could make for bad times at work if this coworker welches on the deal or quits and moves away.
I hope things work out whatever you end up doing.
A coworker who is not your buddy wouldn't get my money and a 50-50 chance of repayment doesn't cut it either.Personally I'd rather buy the gun myself to secure it and then let the coworker make payments before transferring it to him.
He'd have to be a long time friend of mine (even outside of work) before I would even consider it.It could make for bad times at work if this coworker welches on the deal or quits and moves away.
I hope things work out whatever you end up doing.
PeteMitchell
Member
colte6920 has a good point, I'd find a local shop willing to transfer ownership of the gun for cheap. So if he DOES back out, you rightfully own it. Because you need both consenting parties for a legit transfer and the co-worker may not be as willing later down the road.
Good luck!
Good luck!
OP
Matchking Man
Member
Fool? Me? LOL.
MrTrolleyguy
US Veteran
You're smart to give him 50%. It will be encourage him to regain possession. You are giving him a secured loan and you don't to get the short end of the deal. I have done this a number of times in the past and I always came out on top one way or another.
A suggestion would be to put a reasonable time limit. Four months is what I have done and six for close friends.
A suggestion would be to put a reasonable time limit. Four months is what I have done and six for close friends.
Friend or not this could get ugly if our co-worker goes south on the loan. He will be pissed that the cash is gone and you took advantage of him by keeping "HIS" prized revolver. I would stay away from this deal if I could.
If you're going to get involved with this, draw up some sort of written agreement, as to when the loan is to be repaid and how it will be paid back. I.e. will he have XX number of days to repay, will you allow him to make regular payments or will he be expected to repay you in full. Also include what if any interest is to be charged. And finally make it VERY clear that the revolver will be forfeited if he does not repay you in full.
Best of luck, I think your going to need it with this deal.
If you're going to get involved with this, draw up some sort of written agreement, as to when the loan is to be repaid and how it will be paid back. I.e. will he have XX number of days to repay, will you allow him to make regular payments or will he be expected to repay you in full. Also include what if any interest is to be charged. And finally make it VERY clear that the revolver will be forfeited if he does not repay you in full.
Best of luck, I think your going to need it with this deal.
Kilibreaux
Member
If a Pawn shop won't go over $350, neither should you. It's not about overhead really, it's about RISK! If you're already thinking he's a 50:50 risk to pay you back then you should not loan above the Pawn shop's rate.
Be aware of all the legalities when it comes to "holding on" to a handgun...if the gun has not changed hands via FFL transfer you may have a hard time if he defaults.
Be aware of all the legalities when it comes to "holding on" to a handgun...if the gun has not changed hands via FFL transfer you may have a hard time if he defaults.
No brainer.
Pawn shop offers a $350 loan and you are not involved.
You offer a $500 loan and you are involved.
For $150 you are:
1. Risking your day to day relationship with a co-worker.
2. Having to keep track of a loan.
3. Having to maintain responsibility for his/your revolver. What happens if it get damaged or stolen? What happens if he cannot pay back the loan?
This is a no-brainer. Either buy it outright or don't get involved.
Pawn shop offers a $350 loan and you are not involved.
You offer a $500 loan and you are involved.
For $150 you are:
1. Risking your day to day relationship with a co-worker.
2. Having to keep track of a loan.
3. Having to maintain responsibility for his/your revolver. What happens if it get damaged or stolen? What happens if he cannot pay back the loan?
This is a no-brainer. Either buy it outright or don't get involved.
Let him pawn it for $350 and buy his pawn ticket for $50 before the loan expires.
I'd advise staying away from a loan transaction, too. You'd basically be going into the pawn business for a single item, without the legal and businss structures in place to define and protect your economic interests, and without even the personal benefit of doing a solid for a good friend.
The most you'd get out of making a loan will be a few dollars interest on a few hundred dollars, while the downside could get really ugly. Even if you use the same contractual language a pawn shop uses, you won't BE a pawn broker. You're just a private citizen making a loan. Do you know the maximum rate of interest your state allows on loans, and the calculation procedure used to determine whether a particular contract exceeds that rate? (Not credit card or pawn shop or payday loans, those guys all have their own lobbyists and state legislators on payroll to write laws to protect their businesses.) Do you know the consequences of making a contract that provides for interest above the legally allowed rate?
One of the benefits a pawn shop has is that it is (usually) unrelated to its customers, and so can enforce its legal rights to the letter - one dollar short or one day late and they keep the gun, legally, full stop. A customer can bitch to his buddies that a pawn shop screwed him, but who listens to that kind of complaint?
But what if your not-a-bud-by-any-stretch doesn't live up to his end of the bargain but still starts spreading the word at work that you basically screwed him out of a gun? How much interest do you need to get to take THAT kind of risk in your workplace? Even if you could get loan shark vig of 5% a week, would it be worth it?
On the whole, I'm with g8br8 - buy it outright or stay away.
The most you'd get out of making a loan will be a few dollars interest on a few hundred dollars, while the downside could get really ugly. Even if you use the same contractual language a pawn shop uses, you won't BE a pawn broker. You're just a private citizen making a loan. Do you know the maximum rate of interest your state allows on loans, and the calculation procedure used to determine whether a particular contract exceeds that rate? (Not credit card or pawn shop or payday loans, those guys all have their own lobbyists and state legislators on payroll to write laws to protect their businesses.) Do you know the consequences of making a contract that provides for interest above the legally allowed rate?
One of the benefits a pawn shop has is that it is (usually) unrelated to its customers, and so can enforce its legal rights to the letter - one dollar short or one day late and they keep the gun, legally, full stop. A customer can bitch to his buddies that a pawn shop screwed him, but who listens to that kind of complaint?
But what if your not-a-bud-by-any-stretch doesn't live up to his end of the bargain but still starts spreading the word at work that you basically screwed him out of a gun? How much interest do you need to get to take THAT kind of risk in your workplace? Even if you could get loan shark vig of 5% a week, would it be worth it?
On the whole, I'm with g8br8 - buy it outright or stay away.
Good advice above .......
Only way I'd do it is to buy his 29 for $500. Get it transferred to you he pays....... tell him he can buy it back in X amount of time for $X ( don't forget your lost income/use of your money) and he pays all transfers when he buys it back...... write up the deal and have him sign it......
on second thought don't do it!!!!!!!!!!! Good advice above!!!!!!!
Only way I'd do it is to buy his 29 for $500. Get it transferred to you he pays....... tell him he can buy it back in X amount of time for $X ( don't forget your lost income/use of your money) and he pays all transfers when he buys it back...... write up the deal and have him sign it......
on second thought don't do it!!!!!!!!!!! Good advice above!!!!!!!
I'd be inclined to steer clear.I've learned my lesson a few times with loaning money,not to mention who knows the gun's history.
If I did proceed,it wouldn't be for 150 more than a pawn shop...more like 50.
And if this non friend does pay you back,what are you getting out of the deal?
If I did proceed,it wouldn't be for 150 more than a pawn shop...more like 50.
And if this non friend does pay you back,what are you getting out of the deal?
kozmic
Member
Plenty of very smart folks here on the Smith and Wesson Forum. Heed their advice on this one!
Buy the gun for a fair price outright or run, don't walk from the deal. Too much potential bravo sierra in too many different ways to ever work out in your favor in the long haul.
My rules on extending credit are simple...."How much can I afford to loose"? Collateral or not, you are setting yourself up for untold anguish.
Buy the gun for a fair price outright or run, don't walk from the deal. Too much potential bravo sierra in too many different ways to ever work out in your favor in the long haul.
My rules on extending credit are simple...."How much can I afford to loose"? Collateral or not, you are setting yourself up for untold anguish.
suckersrus
Member
I do this occasionally with friends, coworkers and relatives. Here is how I handle it.
I buy the gun at just over what the pawn shop offers (I'm do them a favor). In this case, if the pawn shop offered $350 I would give $400 or $450.
The gun becomes mine but I offer the seller the option to purchase the gun back within a time period (6 mo or 1 year, usually) for the original price plus a fee ($50 or $100).
9 times out of 10 the seller never wants the gun back. Usually, because they are extremely bad at managing their money (we have seen evidence of that already).
The 1 or 2 times they did buy the gun back after getting their finances back on track (divorce is the issue I remember) they were grateful and we became even better friends.
I buy the gun at just over what the pawn shop offers (I'm do them a favor). In this case, if the pawn shop offered $350 I would give $400 or $450.
The gun becomes mine but I offer the seller the option to purchase the gun back within a time period (6 mo or 1 year, usually) for the original price plus a fee ($50 or $100).
9 times out of 10 the seller never wants the gun back. Usually, because they are extremely bad at managing their money (we have seen evidence of that already).
The 1 or 2 times they did buy the gun back after getting their finances back on track (divorce is the issue I remember) they were grateful and we became even better friends.
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