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Hi, I am confused.
It looks that the you could make ~$7 hundred a week by renting one medallion.
So 30 weeks per year will bring $21k to the medallion holder.
Now that the current price for one medallion is ~$130k,
then the Return on Equity would be 21k/130k=16.1% which would be lucrative.
If that's the current going rate for one medallion, that doesn't seem like a bad deal. The problem was I think, however, that many secured their medallions for upward of $1 million, then to see their values plummet with the creation of ride share companies like Uber and Lyft.
Hi, I am confused.
It looks that the you could make ~$7 hundred a week by renting one medallion.
So 30 weeks per year will bring $21k to the medallion holder.
Now that the current price for one medallion is ~$130k,
then the Return on Equity would be 21k/130k=16.1% which would be lucrative.
So where am I wrong?
Thank you in advance.
It's not guarantee. You have A LOT of taxi competition. Yellow cabs, green cabs, private car service, Uber, Lyft, and Via. Then factor in gas, insurance, the TLC fees, parking, credit card terminal fees, etc.
The Medallion usually goes for around 1 million. The issue here is that it becomes useless almost instantly.
Medallion owners usually borrow against the medallion as soon as the get it making it worthless. Also most of the times it it not a sole owner. It would be 4 or 5 individuals pooling their money together to buy the Medallion and a vehicle. they would then take shifts running the vehicle basically 24/7. They borrow against it to get loans, this is why when someone tries to sue a Medallion owner if they were injured its always a loss because it has a negative value, shared, or wont pay out if it was sold.
Then there was Uber/Lyft which makes it ever better. The funny thing is when you are in the Bronx and order an Uber and a yellow cab shows up and your like WTF these cabs are not allowed to pick up above 138th street. Then you realize the person own the cab, driving Uber and basically lives the in the BX and parks the yellow cab in the BX.
The Medallion usually goes for around 1 million. The issue here is that it becomes useless almost instantly.
Medallion owners usually borrow against the medallion as soon as the get it making it worthless. Also most of the times it it not a sole owner. It would be 4 or 5 individuals pooling their money together to buy the Medallion and a vehicle. they would then take shifts running the vehicle basically 24/7. They borrow against it to get loans, this is why when someone tries to sue a Medallion owner if they were injured its always a loss because it has a negative value, shared, or wont pay out if it was sold.
Then there was Uber/Lyft which makes it ever better. The funny thing is when you are in the Bronx and order an Uber and a yellow cab shows up and your like WTF these cabs are not allowed to pick up above 138th street. Then you realize the person own the cab, driving Uber and basically lives the in the BX and parks the yellow cab in the BX.
I thought Yellow cabs can pick up anywhere in the 5 boroughs.
Those days are permanently over. The million dollar mark was reached because of the Ponzi scheme the medallion brokers and lenders were running. That's collapsed. From now on, they'll be valued on the cash flow they'll bring in.
Quote:
Originally Posted by SoullessOne
The Medallion usually goes for around 1 million. The issue here is that it becomes useless almost instantly.
I thought Yellow cabs can pick up anywhere in the 5 boroughs.
they can pick up anywhere in the 5 boroughs but they don't. They stick to Manhattan, LIC and downtown Brooklyn. You will see them dropping off people further out but you will seldom see them picking someone up from a street hail. The green taxis came in due to that it was notorious yellow cabs don't pick up in outer boroughs but then they F'd them by limiting them where they cannot pick up passengers at Airports or SI or basically anywhere the Yellow cabs don't want to pick up from
Hi, I am confused.
It looks that the you could make ~$7 hundred a week by renting one medallion.
So 30 weeks per year will bring $21k to the medallion holder.
Now that the current price for one medallion is ~$130k,
then the Return on Equity would be 21k/130k=16.1% which would be lucrative.
So where am I wrong?
Thank you in advance.
Opinion: Real Estate and the Business mindset.
Purchasing a medallion is no different than putting minimum down on a multi million dollar home
with the thinking that as long as the rental income is steady and rises equally with property taxes
all will be fine. Unfortunately there is always a wrench in the work because of time. The longer you
hold the mortgage the greater the chance of losing the home. Loss of job, disability etc,...So to lower
your odds of forfeiture you put more down on a home over less time and once free and clear it will be a
money making machine. Coming up with a big down payment in a short amount of time requires a lot of blood sweat and tears. The only way to keep ahead of inflation. This worked well for many. Work over time ,two jobs and you were rewarded over time with a house paid free and clear. Same with the medallion. Then the flipper phenomenon came into being. This disgusting animal was born. It was the answer for those not wanting to buy the time, or put in the effort. It was all about making a quick buck and quickly passing the burden onto someone else. Still goes on to this day. Broken homes purchased and back on market within 4 month for 4 times the price. Really stop and think about the shoddy work involved folks. Realtors, Contractors all family and collusive ownership......Yeah right. Those days of making a quick buck are over. Flippers have now run out of room for profit. The well has run dry.Home are too high and wages have not kept pace.................All this theory was applied to the taxi industry. Those that did the same with the medal by flipping over the years walked a way wealthy by destroying the lives of others. Many will cite capitalism in its purest form as normal reasoning. Agreed ....as long as wages keep up with those increases. Truth is wages have not kept up and competition like Uber etc became the disability for many a medallion owner. Many invested millions on a long shot and are now losing there shirt ,their homes,their lives. Karma. Flippers.....Karma
Take a way... Pyramid Ponzi schemes work only for those who start it up. Ever notice how they are always the first ones in and the first ones out.
Kill the time and you kill the risks. The taxi industry is the bottom of the pyramid. Unless of course you got a bright idea......
If you ain't got the money to burn........don't gamble................
Last edited by Mr.Retired; 10-02-2019 at 01:59 PM..
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