Search found 10 matches

by OldCannon
Thu Jul 28, 2016 5:49 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

taylormade wrote:I dont mean to clog up the thread- I can make a new one if need be.

Can anyone make any recommendations on how to talk to your HOA? I have some pretty iron clad verbiage in mine that makes me reluctant to ask for a letter of approval.

Mine states- No trade or business may be conducted in or from any dwelling, lots or homesite except; (a) business activity does not involve visitation to the Dwelling by clients, customers, and suppliers or other business invitees. (b) business activity must be consistent with the residential character of the property and does not constitute a nuisance, a hazard or offensive use.
Generally speaking, that's what my HOA's rules said too.

Here's the thing: If you want to get an FFL to sell a boatload of guns, your HOA isn't going to approve. They'd likely do the same if you were selling a boatload of Yeti coolers out of your garage. My FFL is focused on gunsmithing and special services. Low traffic, specialty work. If that's your plan (scope mounting for select customers, etc.), then you can probably get approval. Otherwise, you're likely to be turned down. I got permission from my HOA, but I am strictly forbidden from selling firearms and ammo. That's fine, because I explicitly stated I won't be selling firearms and ammo. I don't run a gun store.

Bottom line: You won't know until you ask :)
by OldCannon
Thu Jul 07, 2016 6:01 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

loktite wrote:Yeah, that website can equated to the National Enquirer lol. But I do believe the RSR group is no longer selling to home-based low quantity FFL's. I've edited my other post.
Yes, confirmed. RSR no longer sells to home based dealers. TONS of other distributors out there. There's definitely a handful of the big distros that don't take you in unless you run a B&M store.
by OldCannon
Wed Jul 06, 2016 1:09 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

I should also add: An FFL license is a "shall issue", not a "may issue." If you qualify with all state and local laws for your location, and you pass the ATF background check, you get the license.
by OldCannon
Wed Jul 06, 2016 1:04 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

loktite wrote:googlefu shows the current word is that ATF will not be issuing new FFL licenses to home based business, however will be doing renewals for the time being. RSR group is no longer shipping firearms to homebased or "kitchen FFL's" as of 6/21.

http://www.thetruthaboutguns.com/2016/0 ... -shipping/

In deference to the rules of this forum, I must state, unequivocally, these rumors are borne specifically from the southern end of a northbound horse.
by OldCannon
Tue Jul 05, 2016 10:02 am
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

Kenneth77 wrote:I was looking into getting mine as well and after doing some looking i found on the ATF site that it said that they were not issuing anymore to people that didnt have a store front , i will see if i can find it again but thats why i said forget it .

Where?! This is absolutely UNTRUE!
by OldCannon
Fri Mar 04, 2016 1:18 am
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

Just to throw more cold water on things...my "net profit" from gun sales last year was $500 (about 25 firearms sold). That comes to about $25 profit per firearm.

Now throw in your overhead cost of a monitored security system, the cost to secure/store firearms, insurance for your business, monthly fees for phone/internet, etc. -- that's no way to make a living :lol:

Truth in advertising: The theoretical "profit" comes in transfers, which have no actual cost burden on the transferring dealer. But even when factoring that in, my overall "profit" for the year was about $1100. If you want to really make money in this industry, you better be ready to SERIOUSLY hustle and sell and transfer a LOT of firearms each week. I'm lucky enough to have a full-time job that permits me to have a more easygoing pace for my gun business.
by OldCannon
Fri Sep 18, 2015 7:21 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

Dr.Wayne wrote:I just basically wanted it to skip the middle man from gunbroker.com and then I thought maybe I could make afew dollars in the process
um, no. Let me explain...there are generally two kinds of guns on gunbroker: Guns that nobody wants, and guns that everybody wants. The first kind are easy to get as a home dealer through the VERY small selection of distributors that will sell to you. Of course, what you discover is that the margins on the guns is about $1 for every $200 in cost. Then you have to remember that you're obligated to "mark up" those guns if you sell locally to the tune of 7-8.5% (sales tax). Then you get to play the "I'm stuck with this inventory" game and you decide to sell the guns on Gunbroker...for less than you paid for them. Cue the sad trombone sound.

Then there's the second kind, which you will discover that, although the few distributors you have DO indeed list them, the inventory always shows zero with an "A" next to it, which means "Allocated," which means "Unless you're buying tens of thousands of dollars of inventory from us every month, don't even ask." If you DO get lucky, then you have a good chance to sell the gun at a decent margin and make some money, but those kind of opportunities as a home dealer are rare.

If you run a home biz, the real money is in transfers. Lots and lots of them. You can also make great money by showing your inventory at gun shows, but making the REAL profit by selling overpriced accessories like MREs, nylon holsters, and old first aid kits. You can tell who the smart gun show guys are, because they stopped selling guns, but still sell MREs, nylon holsters, and old first aid kits :lol:

Also, if you can't be home all the time during normal delivery hours, you can expect heartache and angry customers. Probably both.

Dr.Wayne wrote:and get to play with some cool toys along the way.
You don't have to be a gun dealer to do that :)

P.S. - if you want to run a business that has good profit margin, open a women's shoe and accessory bag store. Just sayin.

P.P.S. - Dont get me wrong, you CAN make a profit as a home based FFL, just not really by selling guns.
by OldCannon
Thu Jan 08, 2015 2:47 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

superchief wrote:you should get an FFL if you meet all the requirements. I'm in my 4th year and i think it is a lot of fun. I don't know why more people don't do it.

1) zoning is a key thing to understand and be able to explain to ATF.
2) if zoning is okay and you pass a NICS background check, you will be approved.
3) there are no "security" requirements for storing any inventory. the language about security deals with making sure you provide gun locks with guns that don't have them.
4) you don't have to be at home "your premises" to get deliveries. I have mine delivered to a UPS box. it works great. if you travel a lot it can have an effect on scheduling to meet your customers.
5) i do 95% transfers and I love doing that business. I'm not making a living at all doing it, but I get to spend the money I make on (wait for it) GUNS!
6) the paperwork has to be right. just do it correctly and follow the rules.

PM me if you want more info to help you decide.
^ This! He nails it all. Alas, I used a shipping center for about a year. It went well, until they simply went out of business with no warning one day! It caused complete chaos with about a month's worth of shipments. Lots of unhappy customers, because a lot of firearms got shipped back to the sender and resulted in a lot of confusion.

Yeah, I'm still bitter with those clowns about that, they took a lot of people's money and skipped town. I've been half tempted to buy up that place to just have my own shipping and receiving center :lol:
by OldCannon
Thu Dec 11, 2014 10:54 am
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

Scott B. wrote: The IOI will like video surveillance and will ask about any alarm systems you have.
To be clear, I was never asked about video surveillance, but was asked about having a monitored alarm system. I would imagine they would expect video surveillance if you're a "Brick & Mortar" business, but not a home-based FFL.

Neither one are mandatory, from what I understand.

Remember that an FFL license is actually a "shall issue" license. That is, if there's nothing in the regulatory checklist that says you may NOT run an FFL, then the ATF must grant you an FFL :tiphat:

Of course, they can shut you down for screwing up just one 4473, but that's a different matter :lol:
by OldCannon
Wed Dec 10, 2014 6:42 pm
Forum: FFL Holders
Topic: Thinking of Getting an FFL
Replies: 40
Views: 16736

Re: Thinking of Getting an FFL

cb1000rider wrote:I looked into it a bit.. It's the record keeping that was a little alarming and the idea that you had to keep that forever and turn it in if you ever wanted to turn the business down.

In general home based businesses have to be wary of zoning and property restrictions, if they exist.. And the do exist in most residential areas.
This is true. If you live under an HOA, for instance, the ATF will require that you show proof that the HOA has approved your business to operate from your home.

The paperwork part isn't too bad, unless you're bad at keeping paperwork, then you shouldn't even consider being an FFL :lol:

As for retirement income, _please_ keep in mind that most firearms have very low margins. Combine this with the fact that you must be home to receive shipments (signature required) and you can quickly find that the FFL business can keep you tied into one place and not making a lot of $$. If you're good with that, then you're all set, but if you and your wife want to travel post-retirement, it's not really an option (counterpoint: You open a small store and hire an employee or three)

Feel free to PM me if you have specific questions :tiphat:

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