Still struggling to turn a profit from buying and reselling property through storage auctions? There’s no denying the fact that storage auctions are a lucrative opportunity, with some professionals turning thousands of dollars in profits after just a couple days. But like all business ventures, there’s also a risk that you won’t earn anything. The good news, however, is that you can increase your chances of success and earn more money with storage auctions by following these tips.
Treat it Like a Business
Participating in storage auctions almost seems like a hobby. Nevertheless, you should still treat it like a business, trimming unnecessary expenses, optimizing your approach for higher profits, and most importantly keeping good accounting records. You can usually deduct business-related expenses from your taxes, which may include things like a vehicle, gas, storage, storefront, etc. Of course, you’ll want to consult with a professional tax agent to learn more about what you can and cannot deduct from your taxes.
Reinvest Your Profits
When you turn a profit on a storage auction, reinvest those profits back into your business. Maybe you need a larger truck or van to haul off your items. or perhaps you need to open a store. Regardless, you should reinvest your profits back into your business so it can further grow.
Target New Markets
Another helpful tip to increase your storage auction profits is to target new markets. Sure, it’s probably easier and more convenient to attest storage auctions in your own hometown — and that’s OK. But if you want to earn more money (and you should), you’ll need to expand your operations into new markets. Perform some research into cities around your area, taking note of their self-storage facilities. You can then contact these facilities to see if and when they host auctions. If this sounds like too much work, you can always buy a storage auction list, such as the ones offered here at StorageAuctionList.com.
In other words, bid on units that “could” contain valuable items, even if those valuable items are not visible when the auctioneer cuts the lock. If you see heavy-duty storage containers inside the unit — as opposed to cardboard boxes — it’s usually indicative of valuables stored inside. After all, most people store their valuable items in weatherproof containers such as this instead of cardboard boxes. This doesn’t necessarily mean that you should blindly bid on every storage unit, but you should be willing to take risks.