![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
|
|
#1
|
|||
|
|||
![]()
Issue is pwcc allowed shilling to pump these prices up so high even 50% of today's ltv will leave THEM holding the bag.
Its almost self fufilling they lose everything and receive pennies on the dollar after the forced sales on bad loans..
__________________
"Trolling Ebay right now" © Always looking for signed 1952 topps as well as variations and errors |
#2
|
|||
|
|||
![]() Quote:
Peter, Nic, Ryan, all excellent points, agree with everyone. If that video is even partially true, that is not a great sign for what may be happening. And Matthew, I think your point was maybe best of all. LOL And Ted, if what you're suggesting is even partially true, that would demonstrate a level of business stupidity that is not seen very often. I had heard that 40% number before in regard to how much was supposedly going to be loaned against a card's value. But if in some cases it was actually going as high as 100% loan-to-value, that is pure insanity from a business aspect. And is especially and even more so if as you're suggesting, there may have been shilling activities involved in the realization of some of these card values used to then determine and set how much would be loaned. For a potential lender to be a party to assist in the setting of such false, overstated values, to me that would be like playing a business version of Russian roulette. From a business standpoint, you're just asking for it IMO. Should be reeaaallly interesting to see where this may end up leading to. |
#3
|
||||
|
||||
![]()
I'm in private equity real estate loans, it's a simple equation, collateral + risk = rate, term, and loan to value. It's an interesting model to me, no foreclosure since I already am in possession of your collateral, more like a margin call, if the price of your 48 Jackie drops below our agreement and you can't pay the delta within 30 days the card is mine, I'll auction it off and get my money back plus some since I only gave you 50 cents on the dollar. These vaults a smart to only offer 12 month terms since the market is so violate. I would guess fair market rate should be in the 12-14% range and an ltv of 50%, and that's on solid pre-war, modern? Maybe 20%. And when you add the 1% transaction fee the rate of return starts to push the ROR an additional percentage point.
I can see why hedge funds would gladly fund a line like this with that model. Last edited by Casey2296; 04-17-2023 at 09:15 PM. |
#4
|
|||
|
|||
![]() Quote:
And I totally agree that the hedgies and private equity guys would make these loans all day long.
__________________
Trying to wrap up my master mays set, with just a few left: 1968 American Oil left side 1971 Bazooka numbered complete panel |
#5
|
||||
|
||||
![]() Quote:
|
#6
|
|||
|
|||
![]() Quote:
Last edited by BobC; 04-18-2023 at 11:00 AM. |
#7
|
|||
|
|||
![]()
And Nic's points, and Phil's comeback, again seem to be right on the money as well. The only way I'd ever think of doing something like this, and take a loan against cards I own, would be if I had a chance to acquire an item that I knew was pretty much a slam dunk steal on my part, that I could (and would) quickly flip for a profit, and pay off the loan as soon as I could.
Last edited by BobC; 04-18-2023 at 11:00 AM. |
#8
|
||||
|
||||
![]()
I watched the clip and while there were some questions raised, to me it's nothing more than a guy spreading a rumor. Another thought or explanation could be the lending business for PWCC is so robust, they raised more capital to support that need. I have no information either way but just bringing up another possibility. I'm also not (nor ever) wearing an "I HEART PWCC" t-shirt.
As for lending against the value of cards, I'm sure there's a business there if done properly and I'd bet the returns would be very strong. Whether PWCC is on the good side of it or not isn't for me to say or even guess. I just didn't see any smoking gun w/that 5 minute clip but more a guy w/a youtube page spreading rumors for clicks. Throw some proof and it'll have much more credibility. |
#9
|
|||
|
|||
![]() Quote:
Last edited by Johnny630; 04-18-2023 at 10:59 AM. |
#10
|
|||
|
|||
![]() Quote:
|
#11
|
||||
|
||||
![]()
I use PWCC to vault my cards and I use them probably 2-3 times a year to sell off cards for me so that I can buy other cards I want. I know this board is not a huge fan of them and some of the things they have done in the past, and thats fine. To debate the merits of them as company is not the point of the response. I wanted to respond only to provide some factual information based on what I am experiecing as a user of their platform.
PWCC loans out at 50% of the INSURED value on the cards you have within the vault. The value of my vault is mid six figures as of this post and that number updates almost daily based on current market sales. The insured value on at least my cards seems to historically low. As I said above, I sell typically 2 or 3 times a year and sell about 10-18K in cards at a time. What I have experienced is that the insured values on my cards tend to be 15-25% lower than the realized prices on those same cards via auctions. I hope this information provides some of you value. Edit to add: I have never taken a loan against cards or borrowed money from PWCC or anyone else for that matter, so I can not speak to repayment terms, etc. Last edited by MBMiller25; 04-18-2023 at 01:24 PM. |
#12
|
||||
|
||||
![]()
Thanks Matt. It’s helpful to have real info rather than speculation, and as Troy pointed out, who knows how accurate that video is, if at all.
Personally, I think 50% of value is a decent LTV on more stable cards; not sure I would lend on that LTV with more modern/speculative stuff. I mean, I still simply do not understand why/how a Luka Doncic or a Justin Herbert rookie (even if it’s a numbered RPA or whatever) can be viewed as valuable as a m101-4/5 Ruth. |
#13
|
|||
|
|||
![]()
a big concern for me would be death. not all of our family/wives are aware of the collection… so how hard would it be to retrieve it after.
|
#14
|
||||
|
||||
![]()
I take everything from Sports Card Radio with a grain of salt. Which is to say, I don't believe a damn word he ever says without actual evidence. He has repeatedly proven himself to be full of sh!t. This "anonymous" source is probably either some random troll from Blowhard or just himself making stuff up to get a rise.
I have first-hand experience with taking "loans" from PWCC (in my case, I wasn't borrowing money against cards in my vault, but rather taking an advance on cards I had already consigned for auction, but it's the same process). This is how it works. First, they appraise your cards and assign an insurance value to them. These values are always low. In some cases, extremely low (one of my cards was insured for $10k, but sold for $18k at auction the following week). If you have cards that you want to take a loan against, you have to put in a loan request for the amount you wish to receive. You are allowed to request up to 50% of the insured value for items in your vault, and up to 75% for cards that have already sold in one of their auctions, but for which you have not yet received payment (normally, it takes about 2 1/2 weeks to receive payment, but you can escalate some of those proceeds if approved - in my case, it was free of charge. I did not have to pay any fees or interest since my cards were already submitted to auction. However, there are fees if you just want to take a loan out on cards sitting in your vault, of course). After you submit your request, it then gets reviewed by a team of underwriters. They will typically send you a counteroffer for less than you've requested (so if you requested the full 50% LTV against the conservatively appraised cards in your vault, you will probably get countered for something like 35% instead. When it's all said and done, their actual exposure is probably somewhere around 25-30% of a card's actual market value when a loan is approved. Unless that's for a card that has already sold and awaiting payment, in which case they'll approve a higher amount as mentioned. As far as a "bank run on the vault" is concerned, all that would do is cause a shipping backlog at PWCC. Even if they went bankrupt, everyone would still get all of their cards back. Unless they've taken loans out against those cards of course, in which case, PWCC obviously reserves the right to auction those cards to recover any funds owed to them.
__________________
If it's not perfectly centered, I probably don't want it. Last edited by Snowman; 04-19-2023 at 05:04 PM. |
#15
|
||||
|
||||
![]() Quote:
__________________
My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at https://www.jamesspaethartwork.com/ He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt. Last edited by Peter_Spaeth; 04-19-2023 at 05:21 PM. |
#16
|
|||
|
|||
![]() Quote:
![]() ![]() |
![]() |
|
|
![]() |
||||
Thread | Thread Starter | Forum | Replies | Last Post |
Calling Net54 Retirees....tell us how Retirement has influenced your hobby activities | tedzan | Net54baseball Vintage (WWII & Older) Baseball Cards & New Member Introductions | 35 | 05-18-2022 08:40 AM |
ebay pulls PWCC listings sighting shill bidding PWCC says WHAT is SHILL BIDDING !!! | megalimey | Watercooler Talk- ALL sports talk | 4 | 08-18-2021 10:25 AM |
Pwcc? | Manny Trillo | Postwar Baseball Cards Forum (Pre-1980) | 7 | 09-23-2016 06:14 AM |
America's Toughest Want List Expands | Archive | Tobacco (T) cards, except T206 B/S/T | 5 | 07-22-2005 09:26 AM |
MASTRO EXPANDS BEYOND COLLECTIBLES MARKET | Archive | Net54baseball Vintage (WWII & Older) Baseball Cards & New Member Introductions | 2 | 03-16-2003 03:04 PM |