We have a couple years buying storage units at auction in NJ now and we wanted to bring you our best three tips for finding success in storage.
TIP # 1 DON’T GET EMOTIONAL
When I first hit the auction scene I had too much money and not enough sense. Several times I wound up gambling much bigger than I had desired. Auctions are very competitive and if you don’t play nice on the social aspect of it all well than it can quickly degenerate into a pissing contest that is not conducive to the profit margin of any one. If you are going to attend regularly it pays to build at least casual social relationships with the other buyers in your area. Do not buy into the TV hype that you need to bid anyone up or find adversaries.
TIP # 2 STICK TO YOUR LIMIT!!!
This one has probably been characterized at every blog dealing with buying storage units at auction. I cannot emphasize enough the losses I took from ignoring this rule over and over. Any strategy involving bidding higher than 25-30% over what you can plainly see is going to be very high risk. If you have the bankroll to withstand the swings, well than god bless. Those of you looking to make a profit. STICK TO YOUR LIMIT
TIP # 3 MONETIZE AS MUCH AS POSSIBLE!
I used to have a partner who used to buy units and give away the majority of the contents. While this might not seem so bad when you hit a good one; that money could be covering losses from losing units. Anyone in this business knows there will be losers frequently and if you can monetize your junk than it can help to lower liability on a bad one and cover losses residually ultimately adding significantly to your bottom line. Garage sales, Flea Markets and swap meets are great ways to unload smalls and things you cannot sell elsewhere.