Storage auctions started out as necessary by-products of the Self Storage industry. Auction items come from abandoned storage units or from those of which renters owe back rent. Recent reality television shows, such as Storage Wars and Auction Hunters, and home business books have made the idea of striking it rich through storage auctions in Sydney quite popular. While auction-related television programmes make the process look easy and fun, there are plenty of risks that are associated with purchasing storage unit contents for resale. Here are a few ideas for reducing the risk of purchasing storage units that are filled with rubbish instead of riches.
Watch and learn from experienced bidders
Go to a few auctions before you actually decide to bid on storage units. Strike up conversations with bidders to find out how long they`ve been going to auctions and their level of success. During the auctions, watch them and note their techniques, from unit inspections to bidding.
Start a storage auction investment club
While it`s ideal to find seasoned bidders who will let you in on their tips and tricks for making money in storage auctions in Sydney, most of them may just look at you as unwelcomed competition. Starting a storage auction investment club may attract experienced bidders, who want to limit their risk of loss by investing in storage unit purchases with a group. The entire group would benefit from the knowledge of the experienced bidder. This type of club is especially useful if members come from various business backgrounds. For instance, the group purchases a storage unit that has an assortment of outdoor sporting equipment. It would be great if one of the members of the club had experience marketing those specific products for sale.
Get a high-powered flashlight for onsite, pre-bid inspections
If you`re able to inspect a storage units` content prior to storage auctions in Sydney, you should come to pre-bid inspections at the auction sites armed with a high-powered flashlight to get a good look inside the storage spaces.
Have a business plan
Decide early on about the types of products that you want to specialise in reselling. When you spot those items in a pre-bid inspection, you`ll have a clue as to how much they are worth and how fast you can resell them.
Bid online
Companies that facilitate online storage auctions in Sydney post pictures of storage unit content before and during online auctions. You can analyse those pictures prior to bidding. When you see items that fit your marketing plan and business strategy, it might be time to place a bid.
Note how storage units are packed
If a storage unit is packed with care, the contents are likely considered to be valuable by someone.
Know the laws and restrictions about reselling used items
You may think you`ve hit the jackpot when you discover your newly purchased storage unit has a car and a matched pair of motorcycles inside. However, if you don`t have the title to those vehicles, it may be difficult to resell them for anything other than parts.
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"Television shows like Storage Wars make bidding on storage units seem like an intense exciting pastime While this can be true it s important to keep in mind the people"
