Could you open a RL pawnshop with $200.000?

[Igorl]

The question is just self-explanatory due to recent bank licence sales respectively.

My oppinion is that I could open 1 at Wall Street next to the stock market for that price.

I.

[Igorl]

I dont know why this is moved to off topic / non EU related.

It HAS everything to do with EU.

The question is asked to discuss the bank investment.

I.

[EarlVonKippler]

200,000 is enough to opne many types of businesses. i have plans to start a RL used video game store for MUCh less than that. of course, it will grow, but paying that much for a virtual store with a very limited market is pretty silly to me.

[Constantine]

Originally Posted by Igorl

The question is just self-explanatory due to recent bank licence sales respectively.

My oppinion is that I could open 1 at Wall Street next to the stock market for that price.

Try doing research first. For example, here in Indiana, to get a pawnbroking license, you must:
"ATTACH CPA prepared reviewed or audited Financial Statements or most recent 10K filing with the Securities and Exchange Commission (SEC) indicating at least $75,000 net worth for each location specified and liquid assets of at least $50,000. For additional information including an option on meeting the liquid asset requirement, see cover sheet."

Thus, your $200,000 just got 25% of its value taken out and show that you have 75K net worth on top of that. You also need to have the fees, lease, a CPA, etc before you even open your door. Given the astronomical real estate prices by Wall Street, there's no way you could open a pawn shop there, although you could probably do it in a less affluent area.

Remember that an RL pawnshop requires renovation to handle extensive security and protect the employees, since they are high-profile targets for crime.

[nvcK]

$200k is way too much for a virtual pawnshop. But it is definitely not enough for the possibility to be the ONLY channel for the US player deposits if the gambling legislature passes

[forgo]

200k can do alot of things if used right, you could easily start a pawn business with less irl.

But as much as people keep talking about banks vs pawns, the only factor I forsee that could change that is how much the bank will give in return for items.

Pawn shops lend money based on a very hacked market value...100$ item gets 50$ cash - they rely on the resale of the item more than interest, by trying to get the people to pay high amounts to get it back...80$ for example with harsh terms, makes it a rough decision on whether you want to pay 30$ to get your own item back (when even if you sold for 100$ you only make 20$ on something youve spent 180$ on original price and the cost to get it back), and in most cases people dont go back.

Banks lend money realistic to market value and make most of thier income on interests.

Im sure there will be alot more into the credit side of things than just item for ped transactions, and that is something pawn shops could care less about.

[Centech]

Originally Posted by Igorl

My oppinion is that I could open 1 at Wall Street next to the stock market for that price.

Uhm. No, no you couldn't. I can't begin to explain all the reasons you are so far off, but you obviously haven't looked into the legal requirements for starting this type of business or the price of real estate in the financial district.

Heck, while I'm at it, 1 Wall St isn't even next door to the NYSE.