PWCC expands its lending activities

trambo · #1 04-18-2023, 10:51 AM

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.

Johnny630 · #2 04-18-2023, 11:56 AM

Quote:

Originally Posted by trambo

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.

I tend to believe it's never as good as it seems and it's never as bad as it seems. Extreme's belief's on either end draw the hype and attention on social media... I tend to think it's somewhere in between. That's being said if you fail to do your own homework prior to engaging you may be setting yourself up for not so pleasant results. The homework I've done on PWCC has informed me enough to never use or consider to use their platform.

BobC · #3 04-18-2023, 12:10 PM

Quote:

Originally Posted by trambo

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.

Very, very true, Troy. And exactly why I was saying IF these rumors/comments have any truth to them. We'll just have to wait and see if anything else starts coming out about this.

MBMiller25 · #4 04-18-2023, 02:22 PM

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.

Rhotchkiss · #5 04-18-2023, 07:46 PM

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.

Popcorn · #6 04-18-2023, 08:43 PM

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.

Snowman · #7 04-19-2023, 06:04 PM

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.

Peter_Spaeth · #8 04-19-2023, 06:19 PM

Quote:

Originally Posted by Snowman

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.

I had a discussion with SCR on Blowout where it was clear he did not understand the first fucking thing about the PSA guarantee, but was dismissing all my correct statements about it with LOLs and inane observations. Bad combination of ignorance and arrogrance.

Snowman · #9 04-19-2023, 06:40 PM

Quote:

Originally Posted by Peter_Spaeth

I had a discussion with SCR on Blowout where it was clear he did not understand the first fucking thing about the PSA guarantee, but was dismissing all my correct statements about it with LOLs and inane observations. Bad combination of ignorance and arrogrance.

He's the trolliest of trolls in this hobby. Fun for entertainment purposes I suppose, but anyone getting their "news" from him isn't someone I'm interested in having a long conversation with.

Lorewalker · #10 04-19-2023, 07:35 PM

Quote:

Originally Posted by Peter_Spaeth

I had a discussion with SCR on Blowout where it was clear he did not understand the first fucking thing about the PSA guarantee, but was dismissing all my correct statements about it with LOLs and inane observations. Bad combination of ignorance and arrogrance.

Yeah he is a self-appointed expert (and he is anything but an expert) and he is always feuding with that other moron who runs Sports Card Investor on youtube. Both are perfect examples of horrible content and spreading misinformation but they both have a huge following.

Snowman · #11 04-19-2023, 10:02 PM

Quote:

Originally Posted by Lorewalker

Yeah he is a self-appointed expert (and he is anything but an expert) and he is always feuding with that other moron who runs Sports Card Investor on youtube. Both are perfect examples of horrible content and spreading misinformation but they both have a huge following.

I think they're brothers, right?

Lorewalker · #12 04-19-2023, 11:16 PM

Quote:

Originally Posted by Snowman

I think they're brothers, right?

It is with great self-respect that I can post that I have no idea if they are brothers or even what their names are.

Fuddjcal · #13 04-27-2023, 09:31 PM

Quote:

Originally Posted by Snowman

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.

What do you think about SCD talking about 30-40 people let go @PWCC tonight then? That didn't take long, LOL. Tomorrow, there will be a PWCC Vault run. We'll see. Won't we? Someone is full of Sh&*

Lorewalker · #14 04-27-2023, 09:40 PM

Quote:

Originally Posted by Fuddjcal

What do you think about SCD talking about 30-40 people let go @PWCC tonight then? That didn't take long, LOL. Tomorrow, there will be a PWCC Vault run. We'll see. Won't we? Someone is full of Sh&*

If you mean this info is coming from SCR, I would not hang my hat on the info. Most of what I have heard come from this dude is utter bullshit. As intolerable as it is to listen to him, if this is from him, can you link it?

Thanks!!

Peter_Spaeth · #15 04-27-2023, 09:45 PM

Quote:

Originally Posted by Lorewalker

If you mean this info is coming from SCR, I would not hang my hat on the info. Most of what I have heard come from this dude is utter bullshit. As intolerable as it is to listen to him, if this is from him, can you link it?

Thanks!!

He reluctantly gets kudos though for some of his card doctor nicknames.

Lorewalker · #16 04-27-2023, 09:51 PM

Quote:

Originally Posted by Peter_Spaeth

He reluctantly gets kudos though for some of his card doctor nicknames.

Some of the stuff he says on his show in total seriousness is likely more hilarious than the card doctor nicknames.

Fuddjcal · #17 04-28-2023, 12:38 PM

Quote:

Originally Posted by Peter_Spaeth

He reluctantly gets kudos though for some of his card doctor nicknames.

Full Disclosure...

I've helped him with a few

Snowman · #18 04-28-2023, 06:37 AM

Quote:

Originally Posted by Fuddjcal

What do you think about SCD talking about 30-40 people let go @PWCC tonight then? That didn't take long, LOL. Tomorrow, there will be a PWCC Vault run. We'll see. Won't we? Someone is full of Sh&*

Link?

I'm not saying it didn't happen, but I personally know multiple people who were recently hired at PWCC. So it seems odd if true.

philo98 · #19 04-28-2023, 06:44 AM

Quote:

Originally Posted by Snowman

Link?

I'm not saying it didn't happen, but I personally know multiple people who were recently hired at PWCC. So it seems odd if true.

If you use LinkedIn just search for Pwcc. There are a number of posts related to workers being laid off. I�ve seen numbers between 30-40. I tried to attach one screenshot.

savedfrommyspokes · #20 04-28-2023, 06:50 AM

Quote:

Originally Posted by Snowman

Link?

I'm not saying it didn't happen, but I personally know multiple people who were recently hired at PWCC. So it seems odd if true.

Below is the post found on Linkedin from a now former employee.

About a year ago I went to the PWCC page on linkedin and there were 40-50 employees listed on their business page. I checked this morning and there were (still) 100+ employees listed. Some of them working remotely (likely the reason for the zoom dismissal) and numerous hired in the past 8-10 months. There were a number of category specialists hired in the past year in areas such as comics, memorabilia, etc.. This hiring spree, IE too rapid of an expansion, correlates time wise with the $175 million fund infusion. Guess the money was burned through quicker than expected..

parkplace33 · #21 04-28-2023, 07:34 AM

Any word from the leader of pwcc? He has been quite quiet for the last few years.

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