Quote:
Originally Posted by trdcrdkid
Shares in the item will then be offered at a pre-determined price with an eye on making a profit for all once the item is re-sold. There will be no fees charged to the collector/investor who participates.
While investors are fractional owners, unlike part owners of airplanes or yachts, they don’t get fractional use. However, they won’t be hidden away in a bank vault either.
Decisions on selling will be conducted by vote. If an offer is made on an item and it seems like a reasonable offer, Collectable would alert the group and a vote would be held. If at least a 50% of the votes cast are to sell, it would then be sold.
Epstein, an avid collector who has spent most of his career in real estate, says they expect the program to be up and running by the end of 2019.
He was attending the National for the first time and enjoyed seeing the mix of high-end shoppers and average collectors with smaller budgets sharing the same trading floor and talking about sports past and present. Making some of those big-ticket cards accessible in some form to the average Joes is something he’s looking forward to.
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Let's see - so it's offered at a pre-determined price, but there are no fees? Well then how exactly do you pay for the insurance, the people, the showrooms, and certainly the "management" of this portfolio? What we can be certain of is that the buyers won't be paying just their pro-rata portion of the purchase price of the asset. Insert whatever word you want for "fees", but isn't that actually the easiest way to say it? Guess not...
So if buyers don't get fractional use, then actually comparison to NetJets isn't a very good one. But it sounds good!
So unless you have to be part of, and stay in, the "IPO" purchase of each asset, if the fractional shares can be exchanged at various times then it's safe to say each buyer will have different "basis" in the asset. That would very possibly give rise to the "vote" forcing some people into losses on their investment. That doesn't sound very good. And without rules of individuals/groups accumulating "majority ownership", again someone could be forced into an action they didn't want.
An avid collector, who was recently "promoted" to COO of a company, attending the National for the first time? Interesting.
I'm pretty confident the only people who will make out in the long run on this are the ones "managing" the portfolio. Let me be first, or I guess in this case second, to get in line for that job.
To answer one of the original questions - yes, something similar was discussed and maybe even offered (not sure on that) back in the height of the late 80s boom. It was a bad idea then, and it remains a bad idea today.