Purchasing a collection

[shotty]

A friend of the family passed away last week. He has a fairly big gun collection, 150+. His son has no interest or knowledge about firearms and wants my help to identify and assess value. More than likely I will be helping him sell the collection. The son, also said that if a fair price could be reached I could purchase the entire lot. I havn't seen the guns as of yet. Question: Is there any laws prohibiting me from such a purchase? Would there be any tranfers on paper or would cash and a handshake do?

 

[Glocktogo]

If you intend to resell them, you would need an FFL or enlist an FFL licensee to transfer the guns to. I would at least get an itemized bill of sale with serial numbers, even if a bulk cash price is agreed upon for the whole lot.

You could just build and excel spreadheet with descriptions, serial numbers and approximate values. Doing a detailed assessment of the collection is first priority. Keep in mind that most dealers will either charge a percentage on consignment sales or buy the lot at a percentage of wholesale value. Bulk wholesale purchases usually carry a discounted sales price, often 50-65% of estimated value.

You could set up tables at a gun show with the inheritor writing the bills of sale. That would get a pretty good return on the collection quickly. Finally, an auction can be done and they usually fetch high prices there. But the auction house will take a large percentage of the total, so that isn't necessarily the best way to go for return on the investment.

I have my firearms estate set up in a spreadsheet with full retail values and expected percentage of return for quick sales. A friend who is a FFL holder will liquidate my firearms for the family in the event of my death. He gets to pick a pre-determined number of firearms to keep for himself in return for his services.

Hope that helps.

 

[Poke78]

If you intend to resell them, you would need an FFL or enlist an FFL licensee to transfer the guns to. I would at least get an itemized bill of sale with serial numbers, even if a bulk cash price is agreed upon for the whole lot.

Please enlighten me further on why an FFL needs to be involved. He would be buying from a private person as a private person. What would it matter if he later wanted to resell them once they are his property? I agree that a detailed inventory with values and a bill of sale from the heir would be a good practice. Estate/probate may be an entirely different matter and would require the services of a lawyer by the heir.

 

[mr ed]

Please enlighten me further on why an FFL needs to be involved. He would be buying from a private person as a private person. What would it matter if he later wanted to resell them once they are his property? I agree that a detailed inventory with values and a bill of sale from the heir would be a good practice. Estate/probate may be an entirely different matter and would require the services of a lawyer by the heir.

The ffl would only be needed if shipped out of state. Such as selling on Gunbroker.com
The only other problem needing one that could arise is if you put 150 guns on the table at a show, the Atf could claim your "engaged in the business" which could cause some headaches.
Especially if the Heir is not present with you at the shows.

I personally would use a ffl at a show. What if Pedro the mex showed up and wanted to buy 20 or 30 ? you got a pretty good idea where there going and you don't want to be on the
6 O'clock news.

 

[jbarnett]

Please enlighten me further on why an FFL needs to be involved. He would be buying from a private person as a private person. What would it matter if he later wanted to resell them once they are his property? I agree that a detailed inventory with values and a bill of sale from the heir would be a good practice. Estate/probate may be an entirely different matter and would require the services of a lawyer by the heir.

I think its if he buys them with the intention of reselling.
If he is buying them to keep then he doesn't need it.

 

[Glocktogo]

Exactly. If you're purchasing with the express intent to resell, you're supposed to have an FFL. With a gun or two here and there it's mostly overlooked. It's a little harder to get away with on 150 guns.

 

[okie98]

If you buy with the intent to resell, you are in the gun business and that requires a license (or it used to).