My experience with fractional ownership of comics: JIM #83 / $215,000 3 3

[Buzzetta]

22 minutes ago, BigLeagueCHEW said:

1. People are easy to heard like cattle

2. The company will go Bankrupt, or close it's doors and skip town with the books.

A waste of time IMO

They are not going to skip town.  They are going to hold those books perpetually while people trade shares of it back and forth increasing a book's alleged value that will never actually go to market.   Eventually it is 'valued' at a price that is higher than what the book is actually trading for.

One of the ways that a scheme like this works is by taking one of a kind items or the highest graded item and placing it under their "ownership".  Because if there is no comparable sale then there is no dispute over the perceived value of the item. 

Like I said, if I wanted to monkey around with this, I can think of several ways to do it and happily take your money to build my collection. 

[KPR Comics]

It all works until the music stops, the chairs are full and you are one of those standing up.

[BigLeagueCHEW]

2 minutes ago, Buzzetta said:

They are not going to skip town.  They are going to hold those books perpetually while people trade shares of it back and forth increasing a book's alleged value that will never actually go to market.   Eventually it is 'valued' at a price that is higher than what the book is actually trading for.

One of the ways that a scheme like this works is by taking one of a kind items or the highest graded item and placing it under their "ownership".  Because if there is no comparable sale then there is no dispute over the perceived value of the item. 

Like I said, if I wanted to monkey around with this, I can think of several ways to do it and happily take your money to build my collection. 

And where is the actual "fund" that these so called investors give to? I can say $215K was raised on some display, but in the background it actually raised $430K+.

As you stated, it is probably funding their own collection, or that home in Chino Hills next to Snoop Dogg.

It's different if you bought shares for a lakeside property that you have partial ownership to and actually take a trip to it for enjoyment, or own a car with a few friends and share it when someone wants to take a cruise.

Why own something you can never touch 

[Funnybooks]

3 hours ago, Buzzetta said:

They are not going to skip town.  They are going to hold those books perpetually while people trade shares of it back and forth increasing a book's alleged value that will never actually go to market.   Eventually it is 'valued' at a price that is higher than what the book is actually trading for.

One of the ways that a scheme like this works is by taking one of a kind items or the highest graded item and placing it under their "ownership".  Because if there is no comparable sale then there is no dispute over the perceived value of the item. 

Like I said, if I wanted to monkey around with this, I can think of several ways to do it and happily take your money to build my collection. 

I own book....you give me money so that you can tell your friends that you own a piece of my book., I mean digital photo. I then use your money to buy another book for my collection where I once again,  sell shares in that book...swish, rinse and repeat...nothing shady here.

[1950's war comics]

11 hours ago, kav said:

I want to share my experience with investment I made-I bought some stuff.
The end.

i bought a brand new penny , looked like it came straight from the mint !!  and it only cost $5.00

[Funnybooks]

[Funnybooks]

Just now, 1950's war comics said:

i bought a brand new penny , looked like it came straight from the mint !!  and it only cost $5.00

That's s steal

[fastballspecial]

Really they picked a good time to roll this out with all the cash readily available. 

That being said someone going to get caught holding the bag here. I remember
laughing at this the last time it came out.

Its looks like its here to stay now. 

[Hamlet]

On 1/9/2021 at 9:46 AM, thehumantorch said:

How do they pay their fees and expenses, and how do they make money?

When I read the fine print last time, it appeared to me like they could borrow against the value of the comic to pay their expenses.  When they sell a comic, they would pay back the debts incurred before paying out the shareholders of the comic.

That is why I have absolutely no confidence in this arrangement.  They have every incentive to run up expenses in self-dealing and leave the shareholders with a lot less down the road.

 

[speedcake]

3 hours ago, KPR Comics said:

It all works until the music stops, the chairs are full and you are one of those standing up.

Don't forget the simple truth that in the end there is only one chair.

[wilbil]

that is the only reason for no confidence?

if the borrow clause is removed, would it be an acceptable fonzi ponzi investment?

[speedcake]

On 1/9/2021 at 9:18 AM, Gman65NJ said:

Interesting discussion. I would think collectors would welcome things like this that make collecting more accessible, creates more interest in general and drive up prices.

 

How much more accessible do you want comic book collecting to be? Look at how easily a hoard of comics can be assembled just via sale threads on this forum? Collecting is perfectly accessible.

Besides, this isn't collecting. It's 100% investing and it's dumb. It's an incredibly dumb idea. Have at it, if you want but its a nonsense way to collect and a perfect way to lose a bunch of money.

[Buzzetta]

5 hours ago, speedcake said:

How much more accessible do you want comic book collecting to be? Look at how easily a hoard of comics can be assembled just via sale threads on this forum? Collecting is perfectly accessible.

Besides, this isn't collecting. It's 100% investing and it's dumb. It's an incredibly dumb idea. Have at it, if you want but its a nonsense way to collect and a perfect way to lose a bunch of money.

That's the thing.  Rally Rd is not losing money.  They are losing other people's money. 

[shadroch]

Rally isn't some fly by night company. It's got a pretty impressive list of corporate officers and has assets of close to twenty million dollars. Some of you are acting like this is a kid operating out of a tree house.

Accredited Investors get offered opportunities like this all the time. Going after small investors is unusual and I don't see much profit to be realized but I don't think they are going to snacking with the products or the money.

[shadroch]

To be a bit extreme, you could have bought a tesla last year for $60,000 and own a really nice car or you could have bought $60,000  worth of Tesla and now you're able to buy a nice private jet.

[Randall Dowling]

6 hours ago, Buzzetta said:

That's the thing.  Rally Rd is not losing money.  They are losing other people's money. 

[Funnybooks]

5 hours ago, Randall Dowling said:

so HOT

[wilbil]

6 hours ago, shadroch said:

Rally isn't some fly by night company. It's got a pretty impressive list of corporate officers and has assets of close to twenty million dollars. Some of you are acting like this is a kid operating out of a tree house.

Accredited Investors get offered opportunities like this all the time. Going after small investors is unusual and I don't see much profit to be realized but I don't think they are going to snacking with the products or the money.

never stop selling, shad, never stop selling....

[wilbil]

5 hours ago, shadroch said:

To be a bit extreme, you could have bought a tesla last year for $60,000 and own a really nice car or you could have bought $60,000  worth of Tesla and now you're able to buy a nice private jet.

not the whole tesla blahblah thing again. what has it been, 3 - 4years of this? considering your constant endorsement of tesla, even at the time the wheels were falling off, the doors were falling off, the batteries were catching fire, the cars were being assembled without windshields, and in 1 case a steering wheel, you have stuck by them. loyalty counts, and assuming you are a man of convictions and also knows a good selling thing and business opportunity when he sees it, how do you like your nice private jets? i am sure you bought more than 1.

any pictures?

[shadroch]

For a fairly small company, they have a pretty impressive management team, and their car division has gotten a number of good write-ups. 

You aren't buying a comic. You are investing in an asset that has a proven track record. No one knows what the future will bring, but if you'd been able to invest in this ten or twenty years ago, you'd be sitting pretty. The management has a good track record when selecting cars for people to invest in, from what I can tell.  People who bought in to the first two cars they sold made 18% on one, and 16% on the other. Not a home run, but a solid double.

I'm thinking they diversified into collectibles as a way to get younger people involved in their business and perhaps cross over into the classic car hobby. 

Edited January 11, 2021 by shadroch