I ran southern California these past two weeks and things are going strong. The new buyers are coming out in large numbers. One thing I noticed is that many new buyers are MapQuesting their routes. People, go to WalMart and buy a GPS, they cost next to nothing. Your time in this business is priceless and getting to the next location before the other 150 buyers is also priceless.
I saw about 75 units and bought none. The junk is out there, and the high prices are there too. Units that should bring $200.00 were bringing $600.00 and up. Remember: If you're going into this business and over paying this will not help you. Keep this in mind, I know it is hard to hold back because you want to start the treasure hunt. Many new buyers I met have big hopes, I witnessed one new couple buy 6 units over paying big on all of them and then they realized they only had 24 hours to get them all out. So, out they ran to rent a Uhaul. These buyers won't be back. You can't start in this game by throwing large sums of cash at units and then lack the equipment to remove them. Buy to fit your means. If you have a pick up and you're 70 miles from home buy a 5x10 and fill your truck. Start slow and stick around a lot longer.
BUYER ALERT!!! Many of the auctioneers in California are charging $300 and up on cleaning deposits per unit. This means if you buy three units at $500 each, you will need $2535.00 in your pocket to pay for them. You will get your $900.00 in cleaning deposits back as long as you clear out the unit 110%. This includes sweeping it clean in the allotted time to get items out. Otherwise, you will lose the $900.00 in deposits back to the property. All things you must to watch out for. Most auctioneers welcome you new or old, but I found a few very against the new buyers and treated them like crap. So, my suggestion is to have strong shoulders because you might find yourself in unwelcoming territory even from the Auctioneers. I find this NUTS since the buyer is who we, as Auctioneers, need to be welcoming with open arms if we want to make our living.
Wednesday, January 19, 2011
TV REAL OR NOT
Okay we are seeing alot of shows hitting the air about storage auctions. The only one that I have found to be possible real reality would be the A&E hit Storage Wars. But Iam still watching this one close and will give my views at a later date. I am not saying the others are not watchable just some are not the answer you're looking for. You would have to be the judge and you have to watch the ones that teach you what you want to know.
I have been on two sets of two different shows and the Storage Wars set is not a set at all it is a real auction happening right then (reality?). They used real people off the street that happened to showed up at the auction and happened upon the filming of the show. You have to sign a short release and you're on the tube. So I will see what happens as they air these. The other show I was on I will put it this way the crowd was paid $35.00 each to stand there. They then sold the same shed five times to get the right mix. That, my folks is not reality and the real will rise to the top and the copy cats will disappear like many auction shows that came and went fast.
If you want to learn this business TV will not do it for you. After all, if you watch any of these shows the buyers kind of double talk. In one breath, they are saying you can make money in this business, then they say the industry is a secret and will break you. Which is it ? Think of it this way if you found a way to make 100's of thousands of dollars, how fast would you be on the soap box selling your find to build your own competition. Unfortunately, I feel many of these folks that are on TV are there because business is not so good for them. This business will truly either make you a honest living or break you.
I have been in this industry for over 13 years and I can tell you one thing buying a unit for $1000.00 or more rarely ever turns out $10,000 to $20,000 in profits like many of these shows are putting out there. You can bet that many IRS agents are sharpening their pencils on this one. I can tell you this get into the business right, pay your taxes and hope for the gold mine hitting one day, but keep in mind many times the gold mine is in the auctioneers pocket and your just knee deep in crapola. The best thing about this business is you will gain one close friend that knows you by first name and might even send you a Christmas gift each year. Who that would be? The trash dump manager.
Again, when it comes to TV shows remember take the pointers and run will them. Just keep in mind they are just that pointers and you must look at the source. People who sell out their trade tend to be the ones floundering in the trade. The true buyer making money will be stone faced and look like he or she should be at a poker table not a auction. You will soon see when you attend one of these sales you have the pro-buyers, they are the ones against the wall and talking to no one. Then, you have the ones telling tall stories about how they bought units and found Harley's, guns and cash.
I leave you with this simple fact if you were storing a Harley cash or guns and you owed $600.00 or even $1000.00 in back rent what do you think you would do? Go to your unit and pawn a gun or two and ride your Harley into the wind with some cash in your pocket or let it go to an auction buyer? The only time that happens is when someone goes to jail or has passed on. bI don't know about you but I sure wouldn't want to meet that 1% from some motorcycle gang with his bike between your legs and his cash in your pocket. You will have one route on that one and it won't be an invite to their next club party. This is a fun business if your sharp and smart. Leave the dreams at home and be a business person. After all that is what this is a business.
I have been on two sets of two different shows and the Storage Wars set is not a set at all it is a real auction happening right then (reality?). They used real people off the street that happened to showed up at the auction and happened upon the filming of the show. You have to sign a short release and you're on the tube. So I will see what happens as they air these. The other show I was on I will put it this way the crowd was paid $35.00 each to stand there. They then sold the same shed five times to get the right mix. That, my folks is not reality and the real will rise to the top and the copy cats will disappear like many auction shows that came and went fast.
If you want to learn this business TV will not do it for you. After all, if you watch any of these shows the buyers kind of double talk. In one breath, they are saying you can make money in this business, then they say the industry is a secret and will break you. Which is it ? Think of it this way if you found a way to make 100's of thousands of dollars, how fast would you be on the soap box selling your find to build your own competition. Unfortunately, I feel many of these folks that are on TV are there because business is not so good for them. This business will truly either make you a honest living or break you.
I have been in this industry for over 13 years and I can tell you one thing buying a unit for $1000.00 or more rarely ever turns out $10,000 to $20,000 in profits like many of these shows are putting out there. You can bet that many IRS agents are sharpening their pencils on this one. I can tell you this get into the business right, pay your taxes and hope for the gold mine hitting one day, but keep in mind many times the gold mine is in the auctioneers pocket and your just knee deep in crapola. The best thing about this business is you will gain one close friend that knows you by first name and might even send you a Christmas gift each year. Who that would be? The trash dump manager.
Again, when it comes to TV shows remember take the pointers and run will them. Just keep in mind they are just that pointers and you must look at the source. People who sell out their trade tend to be the ones floundering in the trade. The true buyer making money will be stone faced and look like he or she should be at a poker table not a auction. You will soon see when you attend one of these sales you have the pro-buyers, they are the ones against the wall and talking to no one. Then, you have the ones telling tall stories about how they bought units and found Harley's, guns and cash.
I leave you with this simple fact if you were storing a Harley cash or guns and you owed $600.00 or even $1000.00 in back rent what do you think you would do? Go to your unit and pawn a gun or two and ride your Harley into the wind with some cash in your pocket or let it go to an auction buyer? The only time that happens is when someone goes to jail or has passed on. bI don't know about you but I sure wouldn't want to meet that 1% from some motorcycle gang with his bike between your legs and his cash in your pocket. You will have one route on that one and it won't be an invite to their next club party. This is a fun business if your sharp and smart. Leave the dreams at home and be a business person. After all that is what this is a business.
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