(Topic ID: 236755)

Thinking about selling my entire collection - 15 Games

By WackyBrakke

2 years ago


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Topic Stats

  • 254 posts
  • 138 Pinsiders participating
  • Latest reply 2 years ago by spfxted
  • Topic is favorited by 6 Pinsiders

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Topic poll

“Should I sell my collection to pay off the house”

  • Yes! 162 votes
    61%
  • No! 53 votes
    20%
  • You're bananas 51 votes
    19%

(266 votes)

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17
#9 2 years ago
Quoted from WackyBrakke:I can't decide, but if everything comes together this year (Large work bonus) there is a strong possibility I could pay off my house IF I also sell my entire collection of pinball machines, which conservatively I think I could sell them for $97,900.00
I'd have to slowly bring my collection back over the next few years........

The gamble is will they keep appreciating in price? Or has the price move of the last few years seen the top for awhile and you could indeed buy them back for the same money a little later? Or could prices crash as AC-DC alludes to.

I paid off my house in 1995. I know the financial types will talk about how you need to keep leveraged up and "HAVE THAT MONEY WORKING FOR YOU !!!!". But I have never been sorry that I paid off my house early. Being mortgage free let's you get some of the best sleep you will ever get.

Keep your 3 most favorite pins so you have something to do around the house and pay as much on our house as you can.

Quoted from YeOldPinPlayer:

Yes. You can buy back the keepers after the crash. Perfect timing.

#56 2 years ago
Quoted from WackyBrakke:

Interest rate is 4.55% monthly interest & principle payment is 3k plus another $600 in escrow items that wouldn't go away.

$3K a month. I would have a stroke when I went to bed and heart attack when I woke up if I had a monthly nut like that I had to cover.

Way back, early 70s, my dad and step mom bought a 3 bedroom, 2 car garage, corner lot and my step mom was bitching about the $220.00 house payments.

In 1977, I was looking to buy a house and my job went sour. I finally bought a house 2 years later but in that ensuing two years house prices doubled. The house I finally bought and still live in today cost me $33,500.00 and the loan was 10%. If I could have bought two years earlier I could have had this same house for around $18K.

In 1979, I got on with Boeing Aircraft as a spray painter for airplane parts. It was a union job and I was a making tops wages at $6.60 per hour. It took every bit of that and any and all overtime I could beg, borrow, and steal to make a $360.00 per month house payment.

Another new hire, and older than me, was working for Martin-Marietta somewhere in Colorado. He had been there for some time and when M-M transferred him he had to move. He was transferred to New Orleans. He could not handle N.O. and quit his job and returned his homie country of Wichita. He had sold his house in Colorado and he was looking for a house around here.

I asked if he was going to put all of his money on his "new" house or hold some back. He said, " I'm putting it on the house. Fuck those $300.00 a month house payments."

And that is the way we thought back then. My generation came of age in the 70s. The 70s were an Arab oil shortage in 1973 that put the skids to the economy. President Gerald started his WIN (whip inflation now) campaign if full force. News stories were filled with old ladies eating Alpo dog food because it was all they could afford to buy.

The Dow Jones went into bear market in 1974 and did nothing until 1982 when Paul Volker pushed interest rates to 22%. From 1974 to 1982, most money in the market was dead money. Joe Granville made a name for his self with his market calls of being short the markets; The Fischbach Brothers were noted short sellers. We lived in period of "stagflation" with high interest rates, escalating prices for goods and services---and houses. Wall Street bankers were a dime-a-dozen.

It has been a nice run for the last 35 years for a lot of people.

And somehow, along the way we have moved from an era where a $220.00 per month house payment has been supplanted by a generation who thinks a $1400.00 mortgage payment is a bargain and a $3K mortgage is no big deal. Amazing. I still scratch my head.

There are no collections of pins that I would want if I had a $3K monthly payment. None.

#73 2 years ago

You know, right now you are paying $3K monthly mortgage. If you sell your pins and pay off the house you will able to put $3K per month in your pocket. You can start a nice collection with $3K per month play money. 3K = 36K annual. How many pins can you buy with $36K? And a paid for house.

#75 2 years ago
Quoted from PiNDoCToR:

Try not paying your property taxes and you'll find out that the house isn't yours and can definitely be taken. Even with a paid off home, we are basically renting it from the local government. That's how it works in the USA anyhow. I hate it myself but that's how it works.

You have to pay taxes. Get used to it. You drive on city streets that don't repair themselves. You have to fund a fire department. School taxes? I have never had any kids but I benefit when the neighborhood, the city, is loaded up with kids with educations. I don't mind paying to educate YOUR kids.

What stinks is when someone who lives in the country gets annexed by the city. And here come the taxes but you are still drinking well water and the fire department is still to far away to do you any good.

The other thing that stinks is when the city starts pissing money away for some 2nd rate piece of art or for endless studies to see a new street really needs to be approved.

Taxes are sort of like insurance. You don't have to pay, but you are a fool if you don't.

#96 2 years ago
Quoted from jake35:

Does the irs wonder where 84k shows up from? They never worry about the cash leaving the bank, but they usually wonder where it comes from in large amounts.

I have thought about that a lot. Does the IRS come calling and demanding an income tax on that $84K? Did you keep all of your receipts through the years? Did you even get a receipt or a bill of sale when you acquired all of those pins? Will the IRS consider your cost basis to be zero? Did you bill yourself for all of the hours you worked on them?

A friend of mine owned a '77 Vette. He then opened up a Corvette shop and got a dealer's license. Then he sold the Vette and recorded the sale on the books. He sold it for $6,000.00 but since he did not do any paper work and actually sell it to the shop, the IRS considered his cost basis to be zero and he had to show the full $6K of the sale as income. Trouble is that he paid 6K for it so he did not make a dime but got to eat the tax.

How would that work if you sold a lot of 10 pins for thousands and did it by bank wire?

#114 2 years ago
Quoted from luvthatapex2:

Why does everything have to be absolute? Sell all, pay off all. Why not sell the games you don't play (or haven't played in say a month) and pop that money down on the principal, then refinance to a shorter term. You should easily be able to keep 5 or 6 games and buy back some peace of mind on the mortgage balance.

If he would have come in and said," I am going to sell off half of my pins. Which ones should I keep.", then this conversation would had slid into "sell this one and keep this one" and someone else would chime in and say "No! Keep the one he says to sell and sell the one he says to keep." After 30 posts there be 15 post saying to keep each pin and 15 posts saying to sell each pin.

#141 2 years ago
Quoted from pinzrfun:

Owning real estate isn't really "work".....and it definitely pays better than Social Security......

Why do I somehow expect to see you on TV late at night, sitting in the back of a rented biz jet, and telling us all how much money we can make in real estate without any work to do on our part other than send you $79.95 for your books on how to make money in real estate with out working? Buy my books and the money will just start rolling in.

#149 2 years ago
Quoted from DBLM:

Note: before people freak out, this strategy is not right for everybody and is dependent upon individual circumstances. This tends to work better with people with larger incomes and risk tolerances.

That fits right in with similar statements:

1) It takes money to make money.

2) Do not invest/play with any money you cannot afford to lose.

#182 2 years ago
Quoted from taylor34:

If you're going to mock people investing in real estate, could you tell us what would be better? Serious question here, at least tell us what you would do.

I was not mocking him. I was being real. Do I have anything better? No, I don't. The OP asked if he should keep his pins or pay off the mortgage. I am not a financial advisor. My advise was to leverage down and not be a slave to the monthly payments.

I known a few people who have made a lot of money in real estate. And I have known some who lost it all.

And when I read about how real estate is not any work and yada yada my mind takes me back to when the charlatans were covering the airwaves. But now that I am looking a little closer I guess my history is a little older than I thought. In the 90s, these guys were selling shit and getting rich.
And this is what I think about when I hear the real estates stories. "Its so easy to make money in RE. You buy with other peoples' money".

Along with these guys you had the "investment" houses pumping out real estate limited partnerships. When they pulled on that string long enough they started rolling out limited partnerships for buy railroad boxcars. If that does not do it for you, the gold and silver boys are back at it with buying their overpriced coins. The one thing I have not seen lately is the Strategic Metals limited partnerships.

I had a friend approach me several years ago about buying some houses and fixing them up and selling them. A partnership, if will allow. I was the one with the money and was not interested in the risk.

Anyway, when I hear "real estate" this is where my mind goes. Rightly, or wrongly, this is what always pops into my head. First thing; Always. A lot of people got taken for the real estate ride.

https://en.wikipedia.org/wiki/Dave_Del_Dotto

And don't forget Tom Vu

#209 2 years ago
Quoted from ShinyBall:

later...

This is what is so fun about the forums

Thank you

#232 2 years ago

I have a question for you. In this top post, you are using, as an example, you talk of leveraging up and making $100K look like $1million. I understand the concept. And I am not knocking it. But it is not a risk free venture. You can run into some bumps along the way.

But my question is related to an earlier post you made.

Quoted from pinzrfun:

let's say you leverage that 100k, and put 10% (20k) down on 5 200k rental houses. You now control a million dollars worth of property and make $500 a month positive cash flow from each one. That's $30, 000.00 a year, whether you get out of bed or not. Want to take a cruise around the world for your 50th birthday? Go ahead, borrow against the equity. And in 15 years, they are paid off and then the money really starts coming in. You now own them free and clear. And you didn't pay them off. Your tenants did.

In this post you talk about having 2 rentals and one is paid for. So, my question is why don't you take the paid off unit and borrow against it and go buy more properties and make use of the leverage of which you speak? You know, "Go for the gusto". Or is this something you are planning to do?

Quoted from pinzrfun:

We have 2 mortgages right now and will die with several more if things go as planned. We have 2 rental properties (one is paid for) that pay the mortgage on our new house. Our tenants pay the mortgage on the rental. We plan on having more rental properties in the future. Being mortgage free is not the goal. It's all how you look at things.

#241 2 years ago
Quoted from TheLaw:

Don;t know how this became a landlord thread

I do. Someone told the OP he needed to get his money to working for him.

And that it would be bad financial practice to pay off a low interest rate mortgage.

The OP said "fuck it". He was keeping his pins. And the mortgage, too.

So there is nothing else left to talk about

Maybe we can move on to crappy tenants. I used to have a tote-the-note car lot. And your crappy tenants were my crappy customers.

#251 2 years ago
Quoted from The_Director:

What was his decision? Not sure I saw it with all the rest lol

Quoted from cottonm4:

I do. Someone told the OP he needed to get his money to working for him.
And that it would be bad financial practice to pay off a low interest rate mortgage.
The OP said "fuck it". He was keeping his pins. And the mortgage, too.
So there is nothing else left to talk about
Maybe we can move on to crappy tenants. I used to have a tote-the-note car lot. And your crappy tenants were my crappy customers.

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