Proven Signs of a Profitable Storage Unit Chapter 8

Chapter 8

Proven Signs of a Profitable Storage Unit

Well Packed, Neatly Stacked Items in Back of Unit • Quality of Storage Container/Packaging • Quality of Furniture

Proven Signs of a Good Unit…

Assume nothing! The best units will be loaded with neatly packed boxes and antiques. This is always a good sign–but don’t overlook the less obvious signs.

Consider How People Pack…

Most people will pack with the best stuff on the deep end of the unit. Look deep into the unit for boxes carefully hidden deep in the back.

1. Use your flashlight carefully, examine every inch. Look for something like a corner of a tote or a bunch of boxes concealed by a mattress or a couch.

2. Absolutely don’t express excitement. Keep your discoveries to yourself–Loose lips sink ships, and that’s what will raise the bids–Guaranteed!

3. The quality of storage container/packaging will often give you a sign as to what’s in it. People will normally spend money on plastic storage boxes for things that they care about the most. In most cases, packing in totes rather than corrugated boxes would indicate something of value that they care more about–This is not the rule but something to consider as the bid goes higher.

Observe the Quality of Furniture and

Other Visible Items in the Unit…

This will give you a clue to the type of person who owned the unit. It’s okay to be judgmental. It’s your money that you are betting on the unit. As with anything else, with practice and time you will have a real good idea on what items you can sell, who to sell them to – and, how much to charge.

Auction Red Flag Issues chapter 7

Chapter 7

Auction Red Flag Issues

Your Ego • Bad Smells

Open Boxes • Mattresses & Old Computer Equipment

• Lack of Boxes • Visible Food Items

Your Ego

“ I am going to beat these other buyers no matter what-- unless you have money to burn.” Set your realistic bidding budget and don’t budge!

Bad Smells

Use your nose. If it smells bad beware. You would not want smelly things in your house, nor will anyone else.

Ransacked Units Open Boxes…

BEWARE of units with scavenged, torn boxes, scattered items, goods pulled partially from boxes. Use caution when bidding on these units as the previous owner may have come in and just left the junk and taken out all the valuables–Leaving the debt to you, or the storage company of the cost to dispose of trash. You will develop a 6^th sense for this in time.

Disposing of Old Mattresses, Computer equipment etc. will negatively affect your gross profits as they can be expensive to dispose of.

Lack of Boxes

Typically when people pack cherished collectables (the meat of your profits), they pack them in boxes. The more boxes, the better your chances of hitting the jackpot.

Visible Food Items

Be it human food or dog food, use caution as you may be winning a few more unwanted mouths to feed–namely rodents.

Preparing for Bidding CHAPTER 6

CHAPTER 6

Preparing for Bidding

Follow your instincts.

Bidding on auctions is exciting–much like gambling. How much should I bid?… It is important you keep a realistic value and not get drawn into a situation of trying to outbid your competition–a common emotion. But as with everything, there are exceptions.

You will recognize intriguing sheds much like your competitor. Conversely, you must keep to your budget as does your competitor. In some cities there is competition that will attend and win units, often overspending making it seem like you will never win a unit in your price range. Don’t quit. –Keep going to the auctions and keep bidding in your price range…Continue bidding in multiple auctions and eventually you will win. Chances are your competition won’t be in two places at one time as many auctions occur at different places at the same time.

Set your bid limit before the auction starts.

After evaluating the contents of the storage unit, ahead of time, reference your Pre-Auction Worksheet (see page 25 for worksheet)

1. Come up with a number that is the highest you will spend on the unit.

2. Don’t seem too eager–Competitive Bidders will notice.

3. Don’t get caught up in the bidding.

I like to wait until there are a few people bidding. Let’s say up to around $100-- then jump in when the auctioneer says going once going twice ... jump in just before he sells the unit. That rattles the regular bidders and shows them you mean business.

4. Don’t Be Afraid to Bid on Cheap Units–

I have made a profit on every auction I’ve won from $5 to $1000. You will too if you follow the guidelines in this manual.

Important Issues to Consider Before You Attend an Auction

Chapter 5

Important Issues to Consider Before

You Attend an Auction

• How much can I afford to bid?…

Like gambling, don’t bid more than you can afford to lose.

• How do I transport my winnings?…

Local truck rental companies; or, it depends on the contents of winnings. Some Big Box Home Improvement Stores also offer Rental Trucks.

• Where do I store my winnings?…

Know where you are going to store your winnings before attending auction. Most storage companies will give you a few days to clean out the unit. Some storage unit companies may require a $50 deposit that you will get back once the unit is cleaned out. Many times you may be able to rent the storage unit for a longer period. You should speak to the storage manager before the auction to see if that is an option.

• Non-Saleable, but Good Items–Tax Deductible Donations…

Goodwill and Salvation Army will accept many items and sell them to the people in need. Remember they will not take junk. Typically, a good rule of thumb is to give to Goodwill only what you would give to a member of your own family…….

Remember to have them give you a receipt for tax purposes.

• Be Aware of the Cost of Disposing Trash Items…

Many items in your winnings such as old mattresses, old furniture and outdated electronics have no value and must be disposed.

Before you bid, find out your dumping fees from your local waste service companies. If you have access to dumpsters you will be well ahead of the game. Get rid of the trash, don’t tie up your storage space with things you cannot sell for profit.

• Trash or Treasure–Don’t Assume Anything…

So you just bought a box with a bunch of old books.

For many years the elderly haven’t trusted banks to keep their money in or don’t have a way to get to a bank.

Example: A FSA course student’s grandmother died. When it came to dividing her estate the family wondered why there was so very little cash. They could not believe that all that she had was her home and typical household items and a bunch of old crappy books. Well all the relatives grabbed this or that, a couch, lamps, dishes, etc. –They ignored the large bookcase and left.

His father goes by the estate after the relatives leave to clean

the property and notices all those old books on the bookcase. He picks up a book, opens it, and flips it over fanning the pages. A ten. Another ten. A twenty. The money kept pouring out-- not out of just that book-- but the whole collection. Always examine your winnings carefully–And, check those old books for money.

Now that you know what to expect

LET’S GO TO THE AUCTIONS–Proceed to Chapter 6

Types of Auctions

Types of Auctions

The typical self storage shed auction…

1. The typical self storage shed auction is run by an auctioneer or storage manager.

2. Legal Disclosure for Auction–The auctioneer/manager will disclose the legal documents on the unit.

3. Breaking Unit Locks–The locks are broken (normally with a bolt cutter or a grinder)

The door is opened.

4. Typically you have a minute to look at the opened unit without entering the unit or disturbing its contents

5. Bidding starts–Auctioneer/manager says something like, “we will start the bidding at $25, who will give me $30?” The bidding continues until the auctioneer/manager says something like, “going once, going twice.. I am going to sell the unit….sold.”

Sealed Bid Auction…

At this type of auction the locks are not broken until the unit is won.

Generally, you will have a great view of all the items in the unit through the fence. Then you will give your sealed bid on the unit.

After all the bids come in and you are the top bidder, you win the unit and all its contents.

By the Piece or Box Auction…

At this auction the lock is broken, the doors are open, and the auctioneer sells off the unit one piece or one box at a time. (This is not our preferred type of auction.)

Your Pre-Auction Game-Plan

Your Pre-Auction Game-Plan

Follow this step-by-step proven successful game plan in the order presented–see pre-auction worksheet page 31. (Suggest making a copy of your Pre-Auction Worksheet).

Visit on-line newspaper web site for auction postings…

STEP 1: Go to the website of your local paper.

STEP 2: Click on classifieds.

STEP 3: Then click on PUBLIC NOTICE or NOTICE OF SALE, scroll through and find the public auction that you can attend.

(There may be times that there are none listed. If that is the case, go to another paper and repeat Steps 1-3.)

Delivered Paper Classified Ad Postings for Auctions–Same as above. Ads will typically read something like this and have the first and last name of all the people and businesses listed including unit number.

Demographic Profile of Men and Women Rented Storage Units

Our research shows that storage lockers rented by women were loaded with more collectable items, furniture, jewelry, clothing and shoes, and are typically jammed full. Men on the other hand will have more items like tools, ladders, and large items.

STEP 4: Use your PRE-AUCTION worksheet–Page 31

Make a list of the names that you find in the posting and rate them from 1-5 (1 being the lowest auction price and 5 being what you would consider the unit going for the highest price). Keep this list with you at the auction, and use it to figure out how much cash you will need to bring and to strategize at the auction for what units to bid on.

STEP 5: Make a list of the businesses

Check them out online to get a feel what might be in the unit. Then plan your liquidation.

STEP 6: Do you know someone in that business?

Let’s say that you know someone who owns a roofing company and you notice there is a roofing company’s storage unit at an upcoming auction. Call that person in advance and say,

“I may have a line on some equipment for you. Is there anything that you are in need of? Or, if I see something should I pick it up for you? Or, is there anything I should be watching for?”

Pre-Auction Planning Chapter 4 a

3. Storage Cage…

A storage cage is located in a warehouse with chain link halls, walls and gates dividing and containing the items in individual storage cages.

Typically when these go up for auction they are sold as a sealed bid.

Generally, you will have a great view of all the items in the unit through the fence. Then you will give your sealed bid for the unit. After all the bids come in and you are the top bidder, you win the unit and all its contents.