Going Pro?

[chief444]

Good debt is an oxymoron if I've ever heard one. But certainly some types of debt are much worse than others. Owing a large sum of money is no fun even if it is a low interest rate.

[crunchy1]

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If you don't take out the loans you are going to be so far ahead of the game when you get out of college.

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There's nothing that can be done on an internet forum to effectively emphasize how true this statement is.

To the OP: It sounds like you're thinking about borrowing money to start your bankroll... I can't really think of a worse idea. It's tough enough to beat the rake the way it is. By borrowing money you're effectively adding a second rake (the interest on your loans) that you're going to have to beat to become a winning player.

[crunchy1]

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Take out as much in student loans as you can and take as long to pay them off as you can. It's ridiculously cheap money.

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This is horrible advice.

[shant]

I was with you up until you said "cover my nut."

[Dagger78]

If I'd quit my job after 10k hands I'd be dead broke on the street now. I won something stpuid like 5 or 6 BB/100 on those first 10k. Please give it more time and play for a few months before you make any quick decisions. Also read any of the mutliple threads on the subject.

[scott2130]

Why does everyone want to go "Pro"? Why can't you be happy playing poker for extra cash? Even if you make 10 times more then your job, why do you have to label it "Pro"? It must be an ego thing, because filing Schedule C, keeping records, and paying self employment tax is enough to keep me from "Going Pro".

IMO 95% of the so called "Pros" would be better off keeping it as ordinary gambling income. You either don't have the deductions, knowledge, or desire to persue the tax advantages of filing as a true Professional Gambler.

I guess I am just tired of reading another "Going Pro" thread from someone who doesn't understand all of the ramifications.

Sorry for the rant

[chief444]

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Even if you make 10 times more then your job, why do you have to label it "Pro"? It must be an ego thing

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How should someone label their sole source of income, so as not to further offend you or appear egotistical?

[scott2130]

1. I said 95%
2. Did you notice in the part you quoted the word JOB? If you have a JOB then it is not you SOLE source of income.

[elindauer]

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Yes, you could take out student loans and all that and have money to reinvest in bankroll, but I sure would not recommend it unless you have to. If you don't take out the loans you are going to be so far ahead of the game when you get out of college. Instead of worrying about paying back your student loans after college, you can worry about paying for a house, or car, or whatever. Don't borrow unless you have to. Think long term. just my 2cp.

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Paying back your student loans is only a concern if you don't have the money. Remember that the first thing they do when they give you a student loan is give you enough money to pay it back immediately!

Every day you choose not to give it back comes at a price. For student loans, this price is often quite low.

Every day you choose to hold the money gives you an opportunity: use the money to produce even more money. You can do this with virtually no risk.

Deciding whether or not to take on student loans when you don't need them is simply a matter of weighing the benefit of having the money vs the cost of having it. If a > b, you take the loan.

For most debt, the cost of holding the money far outweighs any possible advantage you could accrue from having it. Student loans can sometimes be found at absurdly low interest rates though, so they can be an exception. Advising someone never to take on any debt of any kind is inaccurate advice.

Now, should you take a student loan to play poker? Well, you have to assess your expected win rate, and the risk you are taking that you will lose and burden yourself with the loan amount.

Given the information you have given us, namely, your win rate, the hands you've played, and the number of times you've posted here, we can only assess a very high risk with this action. How can we do anything but conclude that you should NOT take out a loan to play?

You should note that most people over-estimate their own ability, and that win rates can fluctuate significantly over 10K hands. There is also significant risk that you will not have the motivation to play as many hands as you think you will.

Having said all that, it's now up to you. If you get a loan rate that is low enough, it can be a reasonable option. You must be truly honest with yourself on many levels though to make this a good move. If you have any doubt, don't do it.

Good luck.
Eric

[chief444]

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Now, should you take a student loan to play poker?

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FWIW this is the only issue I had with the loan suggestion.

I'll just add in Eric something no one has meantioned relative to the loans...that is many companies pay back student loans for you now as part of the compensation. My last employer paid off my balance in full in exchange for a 3-year contract. So the likelihood of getting that opportunity, depending quite a bit on the major and personal factors of course, is another consideration.