Storage Unit Auction Fraud

Is There Fraud Committed At Storage Unit Auctions?

Unfortunately, the answer is yes. The popularity of the shows on television has driven the crowds numbers through the roof. In fact, on a recent episode of Storage Wars, the star bidders on the show professed their irritation of all the "newbies" who are running up the bids on the lockers. So when you have an explosion of popularity in one particular niche like storage auctions and money is involved, then it is only a matter of time before fraud sets in.

So you may be asking yourself, where is fraud being done. I myself have witnessed it first hand but lets cover a few points of interest before I tell my experience in witnessing some unscrupulous actions. Here are some things to look for when attending an auction at storage unit facilities.

• Check out the lock on the unit. Try to get a look at the lock before it is cut off of the unit. Is it brand new or a little rusty? Is there even a lock on it or has the storage facility cut the lock and put some sort of temporary seal or wire tab lock on it.
  
  
• When the unit is opened do you see any dust? If not, this could be a sign that the unit has had recent visitors. Dust tends to collect quickly and if a unit is 2 or 3 months in default it will probably show dust on furniture or boxes.
  
  
• Are there strange interactions between a bidder and an auctioneer? Watch between auctions if there is close up talk between an auctioneer and bidder. Remember the auctioneer usually gets 10% of the final bid. If the plant bidder runs up the bid its more money in their pocket. If for some reason it backfires on them and they win, they can default and the next lowest bidder wins. It's a win - win situation for the auctioneer.
  
  
• Is the auction a real abandoned locker or is it staged? This is becoming a problem in some states and will probably only get worse. Recently, an ex-employee of a storage unit said his boss wanted to get in on the latest craze. He would put miscellaneous items like abandoned furniture, mattresses and boxes of junk and then have auctions for these created delinquent storage lockers. He could sell the units contents and pass the responsibility of removing the items to the "winner". 
  
  
• Do you see any open boxes? Most people who are truly storing their belongings will tape the boxes shut. Leaving boxes open would expose the contents to roaches, silverfish and rats. If you see open boxes then they have probably been sorted through by the tenant, who is taking the valuables out or the management. Probably a sign that only junk remains in the unit.

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Please keep in mind that most of the storage unit facilities are running legitimate auctions with trustworthy auctioneers. We are not implying they are all deceitful crooks who are out to rip you off. However, the fact remains that fraud does exist and will probably get worse as these shows continue to gain viewers. The best way to prevent being scammed is to educate yourself on what to look for before bidding on an auction. I personally have had success in the business but have had just as many failures.

I mentioned a personal experience earlier here that made me a little suspicious of an auction I was attending. I was going to video the auction process in order to share my experience with my readers and to post on my YouTube channel. As soon as the auctioneer spotted me videoing, she yelled through her megaphone to cease recording or she would have me removed. I turned the video recording off so I could continue to attempt to buy a unit or two that day.

As I tried to bid on the first unit she ignored me. At the next unit I saw her speaking to what I consider a plant bidder. They conversed before each auction and I knew I was witnessing a game plan being devised. I decided these auctions were probably rigged and predetermined so I just sat back and watched. The bidder would stand near her and bid up the unit. Once he hit what he thought was a high enough bid, he would disappear into the crowd. The other reason I believe he was a plant was he would never even look at the unit when it was opened. If I am going to spend $800.00 or more on a unit, I'm going to check it very carefully.

I hope these tips help and always make sure you are smarter than the average person at these auctions. Remember, if you don't arm yourself with knowledge, you have no one to blame but yourself. Get the knowledge you need to succeed. 

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Article written and republished with permission by Charles Myers

Storage Auction Wars?

Everyone pretty much knows what a self storage unit or facility is and most people also know what an auction is. What is not commonly known however is that self storage and auctions actually have more in common than most people think.

Auctions are very popular with people who are either looking to pick things up for a steal or with people who are looking to find items worth of value, such as antiques, jewelry or electronics. The majority of people think about public auctions, auction houses, estate auctions and online auction websites when they are looking to find what they need.

Due to a recent hit television show however, self storage auctions are a growing trend both offline and online. How self storage auctions work is pretty interesting and is outlined below:

• Items that are contained in a self storage unit are put up for auction when the person who owns the belongings have quit paying the storage fee. How long a person has to be in default before the self storage company can put the items up for auction really depends on the state that the storage unit is located in as laws vary.

•  Once it is determined that the items within the storage unit are eligible to be put up for auction, a date and time is set for the auction, which is normally open to the public.
  
• On the date of the auction and at the predetermined time, the door to the self storage unit will be opened and those who are interested in the contents can look into the unit from the outside but they are not allowed to actually go into the unit.
  
• Viewers and interested buyers are only allowed to try to guess what the contents of the storage shed are worth by peering in and trying to see the stuff that is in plain view.

Self storage auctions are becoming a quick growing business opportunity on many different levels. On one level, storage facilities are realizing that they have a way to re-coup the lost income from the person who rented the unit if they decide to quit paying. Those who are in the business of buying stuff at auction and then turning around and selling the items for profits are also catching into this trend and taking advantage of it.

Another industry however that is also catching on is businesses on the Internet. The self storage auction trend is hitting the radars of those who provide information online in the form of instructions and "how to" guides as well.

Are you looking to use mini storage auctions as a way to make money? If so, will this be your first time attending an auction? If yes, please continue reading on for a few helpful and important tips, which can help you walk away happy.

Public storage auctions are a great way to make money. Depending on the auction in question, you either bid on sealed bins or whole storage bays. You are essentially making a wholesale purchase. You are offering to pay one set amount for a lot of merchandise. This is where you can make money, as some of those items may be valuable or sellable.

Despite the fact that you can make money with mini storage auctions, doing so can be risky. A wide range of items are stored inside these units. These items may include clothing, furniture, books, movies, toys, home décor, household appliances, and jewelry. There are also people who store their old financial documents and family photographs. You don't always get to physically inspect everything, so there is some risk involved.

As previously stated, you may not get to physically inspect all items up for auction, but you can get a close look. For that reason, arrive early. You should arrive no later than ten minutes before a public storage auction is scheduled to start.

When scanning a storage bay that has merchandise available for sale, look for large items that are easy to see, like furniture. What type are they? Are they modern, cheap, or antique looking? This can help you guess as to what else is inside. Cheap furniture, like furniture that looks like it came from Wal-Mart, may be a sign that the rest of the items are cheap as well. Of course, cheap doesn't necessarily mean poor in quality.

If you intend to bid, as opposed to just watching how an auction works, bring cash. Most only accept it. Rarely, will you find an auction where credit cards and checks are accepted. Do not plan on running to the bank real quick, as you may be required to make payment right away. Speaking of attending an auction as a viewer, you may want to do so. This will give you a firsthand look at how these auctions operate.

It is also important to know that public storage auctions can be canceled and sometimes at the last minute. If you are traveling far, like an hour or more, to attend an auction, call ahead. Call right before you leave.

Those with unpaid storage bills are likely to make good on their payment once they realize their belongings really will be sold. This may result in the cancellation of a scheduled auction.

Storage auctions are popular. Many people see them as a cheap way to get stuff for their homes and many more see them as a way to make money. That is why you will want to arrive early. You also need to be prepared to shout out your bids and face some competition. If you are shy or nervous about doing so, bring someone along who isn't. This is key to walking away a winner at a mini storage auction.

Finally, know that not all storage auctions are worth your time. You will want to call ahead and ask questions, like how much is being auctioned off. If only one or two storage bays are up for auction, you can still attend, but you may not want to travel far too do so. Your travel expenses may be too high and not worth it in the end.

As previously stated, public storage auctions are a great way to make money, but there is some risk involved. You will not always drive away with a truck filled with valuables that can be resold for a huge profit. However, the more storage auctions you attend and the more bids you place, the better your chances are for walking away with a profit.

Jarrod and Brandi's Victrola Find

Jarrod and Brandi take a Victrola they found in a storage unit auction to have it appraised. Studio Antiques is where they take it and to find out what it is worth.

Storage Locker Auction Shows On TV

Unlocking The Doors On Storage Unit Auction Shows

The popularity of the shows on television has now spread to other channels.

infoMania is a half-hour satirical news show that airs Thursdays at 11/10c on Current TV.

In this video they examine the main aspects of the shows and what they are about.

Storage Auction Treasures

What You Will Find At Storage Unit Auctions

Probably the question I get asked the most is what you will find at a storage unit auction. 

Well, each auction is different and you never can tell what you'll find (I've found that that's actually part of the fun) but I really wanted a way for you to see what great items you can get at storage unit auctions independent from what I am telling you - a third party validation of sorts.

So here's what I did.

I went to eBay and searched for the term "storage auction" in the auction descriptions. I found auctions where people said that the item they were selling was something they got at a storage auction. Now, eBays listings are always changing but here are some of the items I found at the time of this writing.

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Here are some of the items from storage unit auctions that I found being sold on eBay:

• 1990 Honda Gold Wing GL 1500 Motorcycle
• 1974 Oldsmobile 442
• Huge Lot Of Men's Indigo USA Jackets-290 Cases!
• Graco G-Max 3400 G4 Paint Sprayer
• Vintage Brass Carriage Clock
• Quickie S525 Electric Power Wheel Chair
• Fluke Multimeter w/Case
• Canon EOS Rebel X Camera With Bag And Extras
• Kelty Super Tioga External Frame BackPack
• 5 Different Soda Vending Machines
• Stratos 16 Foot Bass Fishing Boat

As you can see, there are some really nice items listed that will easily sell for a huge profit.

And they all had many high priced bids on them.

Can you imagine buying a storage unit at auction that has a motorcycle or some expensive tools or even a fishing boat? 

Those are some good finds!

Mistakes To Avoid at a Storage Auction

Mistakes Cost You Time and Money - Learn What Not To Do

Do you want to use mini storage auctions as a way to make money?  If so, money is made with the reselling of merchandise won at an auction.  How you resell your merchandise can have an impact on your profits, but your biggest potential for making money starts at mini storage auctions.  To increase your chances of making money, avoid these common mistakes.

Traveling too far.  It is said that the more storage unit auctions you attend, the better your chances are for making a profit.  Yes, this is true, but you shouldn't have to travel two or more hours to attend these auctions, unless you know they will be large in size.  With the high cost of gasoline, you may find the best luck staying local.  The good news is that if you live in a large city, you may hear of a different mini storage auction taking place every weekend!

Arriving late.  If you seriously want to make money with mini storage auctions, arrive early.  At the very least, arrive ten minutes before the auction is scheduled to start.  Although you may not be able to inspect the items up for bid, you can still improve your chances of getting a sale.  You can scout out the competition.

Not asking questions.  Not asking questions is something that can hurt you.  As previously stated, only travel two hours or more to attend auctions that are large in size.  Unfortunately, you may not know without first asking.  Also, call ahead to verify that the auction has not been cancelled.  Ask what the accepted methods of payment are and how the bidding process works.  Are you bidding on sealed storage bins or whole storage bays?

Bidding too high on blind bids.  As previously stated, you may either bid on a sealed bin or a whole storage bay.  Many times, the units are opened, giving you a quick look inside.  When it comes to closed storage units or sealed bins, bid, but keep the risk in mind.  While most storage units are packed full, some may only hold one box in the corner.  This is particularly true if the renters had the chance to remove items before the auction.

Not bringing a flashlight.  If the storage units you are bidding on will be opened, you may be granted a quick peek inside.  This peek may only last 10 seconds.  So, bring a flashlight so that you can see. 

Not knowing what to look for.  If you want to make money with mini storage auctions, it is important to know what you can profit from reselling.  You are always taking a gamble, but you can make that gamble less risky.  Furniture and household appliances are good items to resell and they are easy to spot.  Look for name brand products.  Look for boxes that are labeled with their destinations, like kitchen, bedroom, or living room.

Thinking you will get rich right away.  Since mini storage auctions do rely on a lot of luck, there is a possibility that you will make a profit with your first auction, but that doesn't always happen.  Remember, the more items you buy, the better your chances of making a profit are.  If you lose money the first time around, know you can make a huge profit the next time.

Making Money On Ebay With Storage Auctions

Make Money With Storage Auctions And Ebay

Are you looking to make money with mini storage auctions?  If so, you need to find a way to resell what you buy.  After all, that is how you make money.  While you do have a number of different reselling options, eBay is often regarded as one of the best.

If you want to resell your winnings from a mini storage auction on eBay, it is best if you are already an established eBay member. This is due in part to scams.  Some people will post items for sale that they don't actually own.  This does make consumers leery of doing business with someone who is new to selling online. 

On that same note, if you aren't an eBay member, you can still make money on the website.  You can make a few purchases first.  These purchases will appear on your account and show that you did pay for them on time.  This is a sign of someone who can be trusted.  You can also start out listing small, low-priced items for sale to help you build up your feedback.  Items that are small in size and in price means less risk for buyers.  Once you have established feedback, start selling the valuables.

When reselling merchandise you purchased from a storage unit auction, it is important to keep fees in mind.  You are charged multiple fees for selling on eBay.  These fees will cut into your profits, but there are some ticks that you can use.  Study the eBay fee scale, which is available on their website.  Did you know that if you sold a piece of jewelry for $25 it would cost you about .50 cents more in insertion fees than if you sold that same piece for $24.99?  It would.

When selling on eBay, pictures are important.  Consumers do not like buying products that they cannot see.  For that reason, be sure to take lots of pictures.  eBay will charge you a fee if you post more than one picture.  The trick is to use free photo sharing websites.  You can upload your extra photographs to those websites.  Then, obtain a code that lets you embed the photographs into you eBay descriptions, free of charge!

One of the reasons why eBay.com is a great place to sell merchandise you purchased at a mini storage auction is because it is one of the most popular online marketplaces.  Millions of consumers visit eBay looking for quality, yet affordable merchandise to buy.  This can work to your advantage.  It means that your for sale items are likely to get more views, especially when compared to setting up a table at a flea market or hosting a yard sale.

The popularity of eBay can also work to your disadvantage.  Many individuals see it as a way to make a quick buck.  If you perform a search on eBay for common home decor items, such as picture frames, you will see thousands of items available for sale.  You need to compete with these others sellers.  Before listing an item available for sale, such as a wedding themed picture frame, look for similar auctions.  List when there isn't as much competition.

You will also want to take seasons into consideration.  If you do not have a lot of storage space in your home, you may want to resell your purchases as quickly as possibly, but you can lose money by taking this approach.  If you have a box full of winter clothes, don't sell them in spring or summer, wait until fall.  Selling items, especially clothes, in season, can increase the selling price and your profits.

If you keep the above mentioned tips in mind, you should be able to profit from the resale of items you purchased at a mini storage auction.  Since most items on eBay must ship, you may want to look for alternative methods of reselling for large household appliances and furniture.

Pros And Cons of Storage Unit Auctions

It's a Tough Business - Are You Up For The Task?

Are you interested in making money with mini storage auctions?  If so, you are not alone.  Many individuals are finding the buying and reselling of goods bought at these auctions to be a relatively easy way to make money.  But, is it the right opportunity for you?

Mini storage auctions are increasing in frequency.  This has a lot do with the economy today.  Many are forced to leave their big homes and relocate to a smaller home or an apartment.  This often results in the renting of a storage unit.  Unfortunately, the economy is also making it harder for renters to stay up-to-date on their bills.  As sad as this is, it does mean more self-storage auctions for you to profit from.  Depending on where you reside, you may be able to attend a different public storage auction every weekend!

It is, however, important to state that there is some risk involved with mini storage auctions.  Why?  Because you don't always get to see what you are bidding on.  Many times, you just get to peek inside the unit from outside the door.  That is why it is recommended that you bring a flashlight.  Yes, you may walk away with valuable jewelry or antique furniture that you can resell for a profit, but you may also walk away with family mementos.

Despite the possibility of a risk, there is a good chance that you can make a profit.  Many make around $1,000 for each storage unit that they purchase.  Remember that your goal is to make a profit, so even if you make only $200, you still made money.  On that same note, some lucky bidders have seen profits as high as $50,000 or more.  So, how do you become one of those lucky bidders?  Through trial and error.

As previously stated, mini storage auctions can be risky, as you don't always get to see or inspect what you are bidding on.  You can, however, use your best judgment and look for telltale signs.  Bring a flashlight with you and look inside real quick. You may only have a few seconds to do so, but look for items that are large in size, like furniture or household appliances.  These items can almost always be resold.  Look for boxes with moving company names or logos. 

Another pro or plus side to using self-storage auctions to make a profit is the reselling options that you have.  You can list your items for sale on an online classified website, like Craigslist.org, sell on an online bidding site, like eBay.com, rent a table a flea market, or host your own hard sale.  As for what option is the best, it depends on what you have to sell.  Large items, such as furniture and home appliances, can be costly and difficult to ship, so you may see the best luck selling them locally. 

If you have never attended a mini storage auction before, you may want to see what one is like.  Even if you don't plan on bidding, be sure to have cash on hand.  While watching the action, you may spot an antique out of the corner of your eye that no one else seems to notice.  Attending a self-storage auction just as a bystander can give the needed confidence to start bidding at the next auction. 

Yard Sales and Storage Auctions

Making Money With Storage Units And Yard Sales

Do you want to make money with the buying and reselling of merchandise found at mini storage auctions?  If so, you need to find a great way to resell your purchases.  While you do have a number of different choices, you may find hosting a yard sale to be your best option.

Before outlining how you can use a yard sale as a way to profit from merchandise bought at self-storage auctions, it is important to focus on those items.  When bidding at a storage auction, you are urged to use your best judgment.  Do not place a huge bid when you do not know what is inside.  If you can catch a glance at the items up for bid, look for name brand products, household appliances, antiques, and furniture.

Hosting a yard sale is recommended when you have many items to sell.  One table of sellable items may not be worth your time.  If you buy a storage unit that packed to capacity or if you purchase the contents of multiple bays, a yard sale will be worth the time and energy.  Also, remember that you can add your own unwanted personal items to the sale.

When looking to make a profit reselling merchandise, you are urged to limit your business expenses. After all, the less you spend, the more money you make.  This is true, but yard sales rely heavily on advertising.  If you do not live in a heavily populated or a well-trafficked area, no one will know that you are having a sale.  That is why advertising is important.

As for how you should advertise your yard sale, visit Craigslist.org.  There, you can place a free advertisement online, just find the closest city to make your posting.  Buy advertising space in your local newspaper.  Most have a section just for yard sales.  This will cost money, but it will be more than worth it.  Always include your full address, the date and time of the yard sale, as well as a sample of what you have for sale.  On the day of your sale, hang bright colored signs with your address or rely on arrows.

When using yard sales to resell items bought at a mini storage auction, keep your asking price affordable.  Yes, you want to make a profit, but remember that people visit yard sales to find the best deals.  That is why you are urged to have a lot of items on hand.  The good news is that if you buy the contents of a whole storage unit, as opposed to a few closed bins, you should get a lot of things to sell.

Before preparing for your yard sale, one step you will want to take is using the internet.  Do you have any items that look like they could be valuable or antique?  You can use eBay.com to see.  Perform a completed auction search of each item.  If it sells online for more than what you would make at the yard sale, pull it from your sale pile.  Do not expect to get full price for antiques at a yard sale.  Instead, sell them online or contact an antique dealer.

Before your sale, start labeling all items for sale.  Blank yard sale stickers are available for sale at most dollar stores and office supply stores.  Pricing your items is important, as not all shoppers stop and ask for price information.  If some don't see prices listed, they will just move onto the next sale.

The day before your sale, visit your local bank.  Ask for change.  If you get buyers who stop because they saw your sale when driving by, they may not have small bills.  Be sure to have plenty of dollar bills and quarters on hand.  Keep your money in a well-secured location.

The day of your sale, start laying out items for sale.  Group similar items together.  For example, did you get a couple of boxes of movies, toys, and books?  Make sure all books appear together, and so forth.  Clothes can be folded on a table or hung from makeshift racks.  Never lay items flat on the ground, especially if you have other options.