Pawn tickets of Rolex watches

[Speedmaster1979]

Hi all,i would like to seek advises from gurus here that if someone will to borrow $30K immediate cash and return by month end with some interest of course & the latter will also handover his pawn ticket of his rolex watch worth $80K but pawn ticket worth $40K to honor that he will pay off the money by promised date,is it safe to do so & what are the risks involved?

Thanks for all advices rendered

[MsLucifer]

so if the person defaults on the 30K loan, you still have to spend 40K to redeem the watch which is worth 80k from the pawnshop?

i guess that would depend on if you are willing to spend 70K to buy the watch?

[Speedmaster1979]

so if the person defaults on the 30K loan, you still have to spend 40K to redeem the watch which is worth 80k from the pawnshop?

i guess that would depend on if you are willing to spend 70K to buy the watch?

Hi Sis,thanks for the first to offer advice help.

Meaning to say if borrow default payment OR fail to return,can sell off the pawn ticket to recover back the money which is worst case,

Is it possible to do that?

[MsLucifer]

that would be subjected to

1. people are willing to buy the ticket at price you are selling or you might have to sell at a lower price?

2. if you don't have buyers, you would have to service interest to keep the pawn ticket "alive"
so depending on the expiry of the ticket and how long you can up keep the interest?

3. assuming worse case, you spend money to redeem the ticket to sell the watch, at what value will you be able to sell the watch to recoup?

my point is, if the person already pawn the watch for 40K and still need to loan another 30K, it boils down to if he/she is really able to repay the loan and if you are willing to give a loan, you must be mentally prep that you are not able to recoup that money.

[Speedmaster1979]

so if the person defaults on the 30K loan, you still have to spend 40K to redeem the watch which is worth 80k from the pawnshop?

i guess that would depend on if you are willing to spend 70K to buy the watch?

that would be subjected to

1. people are willing to buy the ticket at price you are selling or you might have to sell at a lower price?

2. if you don't have buyers, you would have to service interest to keep the pawn ticket "alive"
so depending on the expiry of the ticket and how long you can up keep the interest?

3. assuming worse case, you spend money to redeem the ticket to sell the watch, at what value will you be able to sell the watch to recoup?

my point is, if the person already pawn the watch for 40K and still need to loan another 30K, it boils down to if he/she is really able to repay the loan and if you are willing to give a loan, you must be mentally prep that you are not able to recoup that money.

Hi Sis Lucifer,

Really appreciated to have your advice & clear analysis,that is really a very good piece of advice & information which i have conveyed to my client & leave him to evaluate the risk himself,think after hearing,think its better to stay on the safe side especially CNY is coming & cash is so important...

I wish to thank you again for your great view & advice,wishing u an advance Happy Lunar New Year👍

[KQIF83]

sounds dangerous to me

unless your intention is to purchase the 80k watch for 70k (30k loan + 40k Pawn)