Selling a MG

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Dan Forrester

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Hi everyone. Im thinking of selling my transferable MAC10 and using the money for a .50 bmg. What is the proper way to do this. Ive purchased suppressors face to face in state before once the form 4 cleared but that was only for used suppressors which aren't worth much.

My plan is to ask for 50% up front and then submit the form 4's? I guess I will need to write up a contract correct? What happens if once the form 4 clears the buyer refuses to give me the remaining 50%?

My plan is to offer it up for sale in state (Florida) first and if no one is interested after a month or so put it up on subguns.com.

Thanks, Dan
 
Check with your local Class 3 dealer, I believe they can hold it for the buyer while he waits on the form 4. With that you can get 100% of the money up front, and the buyer knows it is at the gun shop while he waits. This is just what I've heard others do though not from first hand knowledge so worth a phone call or stop by to your local place.
 
Dan Forrester said:
Hi everyone. Im thinking of selling my transferable MAC10 and using the money for a .50 bmg. What is the proper way to do this. Ive purchased suppressors face to face in state before once the form 4 cleared but that was only for used suppressors which aren't worth much.
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Federal law allows you to transfer the machine gun to another Florida resident on a single Form 4.
If the buyer is outside of Florida, you would need to transfer it to an FFL in the buyers state of residence (1st Form 4 w$200 tax). That FFL will then transfer it to the buyer (2nd Form 4 + $200 stamp). Make sure any out of state buyers are aware of this.

My plan is to ask for 50% up front and then submit the form 4's? I guess I will need to write up a contract correct?
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A contract outlining the purchase price and payment terms isn't required but I doubt many buyers will just send you several thousand dollars without one. ;)
The contract should make it clear as to what happens if ATF disapproves the transfer.


What happens if once the form 4 clears the buyer refuses to give me the remaining 50%?
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For starters he doesn't get the MG.:D
Your contract for the sale should specify whether he loses all or a portion of the 50% deposit. The contract should also state when the balance is due. I wouldn't ship to an out of state dealer unless 100% payment has been received or the receiving dealer does an escrow agreement.
 
Dan Forrester said:
My plan is to ask for 50% up front and then submit the form 4's? I guess I will need to write up a contract correct? What happens if once the form 4 clears the buyer refuses to give me the remaining 50%?
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That's why you don't do a 50/50 deal. You are the one selling - you set the rules.

I would want 100% up front with a contract that spells out what happens for the "what ifs".

Are you looking for top dollar? Or just a good, "fair" price? How much hassle is it worth to you?

Easiest would be to sell to one of the known dealers in FL and get around 90% of selling price right away. Or sell on your own for that other 10%.

Up to you.
 
There’s no way I would sell one 50/50, yes life happens, but you are holding the gun until the F4 is returned 6, 7, 8 months or more and that’s if they submit the paper work in a timely manner. Also and this is my opinion…nothing can be done with the money until the F4 is returned approved. Think about it, you get the money and it’s burning a hole in your pocket…you run to the store and get your shiny new 50 and two weeks later the guy backs out…now what? When I sold my M16 I did a contract up front stating, if anything happens…ANYTHING, 25% of the price is non-refundable. I lucked out and had a local guy purchase that I knew in passing from the gun club, he had a family farm and I met him probably every other week so he could shoot it. I redid the contract that it “was his gun”, however if it broke before the F4 came back it was on his dime. BTW I'm thinking about doing the same thing
 
Check with your local Class 3 dealer, I believe they can hold it for the buyer while he waits on the form 4. With that you can get 100% of the money up front, and the buyer knows it is at the gun shop while he waits.
Click to expand...

That’s the way to do it.
 
Thanks for all the responses! I like the idea of having a local FFL holding the firearm while waiting on forms to clear. Looks like the escrow service is the way to go for out of state.

I also appreciate all the contract ideas!

GarrettJ said:
Easiest would be to sell to one of the known dealers in FL and get around 90% of selling price right away. Or sell on your own for that other 10%.
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Is 90% reasonable to expect? I usually figure around 60% when trading in a title 1 firearm to a gun store. Im not looking to get top dollar for it.

Ive got a full size Texas MAC converted to use UZI mags, about 20 or so magazines, 2 spare uppers a full spare parts kit, and Practical Solutions .22 conversion. Looking to get around $7,500 for it which I think is a fair price. If I could get 85-90% of this from a dealer and put it towards a Barrett M82 I'd be ready to go for it. Does this sound reasonable?

Anyone recommend any dealers?

Thanks, Daniel
 
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GarrettJ said:
That's why you don't do a 50/50 deal. You are the one selling - you set the rules.
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50% down with the balance due when the stamp is returned to the seller is common.
Remember, the seller has virtually zero risk. /He has the firearm AND 50% of the buyers $$$$$$.

I would want 100% up front with a contract that spells out what happens for the "what ifs".
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Good l;uck getting someone to agree with that. Would YOU send a stranger the entire amount? Not me.

Dan Forrester said:
Thanks for all the responses! I like the idea of having a local FFL holding the firearm while waiting on forms to clear.
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What makes you think ATF would like that idea?o_O
To have a dealer hold the firearm means you having a Form 4 approved to have it transferred from your possession to his.
While ANY FFL can temporarily possess an NFA firearm for gunsmithing, this isn't gunsmithing and could take 8months or more before ATF returns a stamp.
 
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dogtown tom said:
While ANY FFL can temporarily possess an NFA firearm for gunsmithing, this isn't gunsmithing and could take 8months or more before ATF returns a stamp.
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Maybe this one just needs a *really* intensive cleaning... no telling how long that may take, not to mention that one, super rare part that is just so hard to find these days... :neener:
 
pdsmith505 said:
Maybe this one just needs a *really* intensive cleaning... no telling how long that may take, not to mention that one, super rare part that is just so hard to find these days... :neener:
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How many FFL's want a machine gun on premises for a year that they don't have a tax stamp for?
You may think a "really intensive cleaning" is a cool answer, it's not.
 
dogtown tom said:
How many FFL's want a machine gun on premises for a year that they don't have a tax stamp for?
You may think a "really intensive cleaning" is a cool answer, it's not.
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Easy now! I even put the little smiley-face thing in there.

93O5Abp.jpg
 
Dan, as mentioned I “WAS” thinking about doing the same thing…I’ve since changed my mind. Right before I posted here I started a thread on 2 other websites, both are more machinegun related than here so maybe their opinions are swayed. Anyway the consensus was I would be crazy to sell my M10 for the Barrett, reasons were many, however some were…

  • Cost of ammunition. Granted I reload for everything I have, but I doubt I would for the 50, so that leaves factory ammo at about $3 a shot, where I can load about 50 round or 45ACP for that.

  • Depreciation of the 50…the M10 WILL go up in value whereas the 50 will go down or not increase the way the machine gun will. After all until legislations comes around they will continue to make the 50 all day, every day. The machine guns are a finite item.

  • Weight of the Barrett and a place to shoot. I have a hard enough time finding a place to shoot my machine guns and almost every one of them will not allow the 50
In the end it’s up to you and from the looks of it I think you‘ve made your mind up, I think it’s a mistake, but it’s your call. You can always purchase the 50 in the future (barring legislation) cheaper than replacing your M10. Good luck.
 
GE-Mini-Gun said:
Dan, as mentioned I “WAS” thinking about doing the same thing…I’ve since changed my mind. Right before I posted here I started a thread on 2 other websites, both are more machinegun related than here so maybe their opinions are swayed. Anyway the consensus was I would be crazy to sell my M10 for the Barrett, reasons were many, however some were…

  • Cost of ammunition. Granted I reload for everything I have, but I doubt I would for the 50, so that leaves factory ammo at about $3 a shot, where I can load about 50 round or 45ACP for that.

  • Depreciation of the 50…the M10 WILL go up in value whereas the 50 will go down or not increase the way the machine gun will. After all until legislations comes around they will continue to make the 50 all day, every day. The machine guns are a finite item.

  • Weight of the Barrett and a place to shoot. I have a hard enough time finding a place to shoot my machine guns and almost every one of them will not allow the 50
In the end it’s up to you and from the looks of it I think you‘ve made your mind up, I think it’s a mistake, but it’s your call. You can always purchase the 50 in the future (barring legislation) cheaper than replacing your M10. Good luck.
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I would agree as well.
I have had several customers take a bite of that big .50cal apple.............90% wind up selling or trading it away for the reasons you give.
After they buy, they discover Texas has very little government land and very few ranges will accommodate a .50 cal. That means at least an hour and a half drive to a .50cal friendly range.
 
dogtown tom said:
To have a dealer hold the firearm means you having a Form 4 approved to have it transferred from your possession to his.
While ANY FFL can temporarily possess an NFA firearm for gunsmithing, this isn't gunsmithing and could take 8months or more before ATF returns a stamp.
Click to expand...

Did not think about that. With that in mind how to title 2 weapons on consignment work? There is a local gun shop that has a C&R M2HB on consignment right now.

GE-Mini-Gun: I can't really argue with any of your points and I really do appreciate you trying to steer me in the right direction.

I figure the cost of ammunition won't really break me. If I shoot 50 rounds every 3 months that would only be $600 a year. Definitely within my budget. I've actually been looking at 20mm and larger guns and compared to anything larger the availability of ammunition brass and reloading components is night and day. Anything larger than 50 BMG is just a collectors item. Not something you can realistically shoot.

Cant really argue with point #2. Projectile weapons will be obsolete long before Hughes goes away. The MG will probably be a better long term investment.

Luckily a definitely have the property to shoot on. I own 40 acres in Florida 700' X 2500' that backs a national forrest. I can basically shoot whatever I want there. I plan to be living on the property full time within 2 years at the latest so then will be able to shoot whenever I want.

Maybe i'm just trying to justify all this to myself but I do appreciate the response!

Thanks, Dan
 
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