The business of buying and selling the contents of abandoned self-storage units can be incredibly lucrative and self-rewarding. But like most businesses, there’s no guarantee of success, which is why it’s important for newcomers to familiarize themselves with the ins and outs of this trade. Following the tips listed below will help you maximize your profits while increasing your chances of establishing a successful, long-lasting business.
Diversify Your Business
Don’t place all of your eggs in a single basket. To maximize your profits, spread your time and efforts across multiple self-storage facilities. Sure, you’ll probably find a facility that’s your favorite when it comes to auctions, but if something happens to this facility, or if they decide to stop holding auctions, you’ll need others on which to fall back. This is why it’s a good idea to sign up for our list here at StorageAuctionList.com, as this will allow you to diversify your efforts across multiple self-storage facilities.
Know When To Pass
Not all self-storage units will contain items of value. In fact, some of them will contain nothing more than boxes and trash, which is why you need to properly size up the contents of a unit before placing a bid. Once the auctioneer cuts the lock, scan the interior of the unit to determine what it contains and whether or not it’s worth bidding on. If you don’t see any items of value, let everyone else bid and save your money for the next unit. Knowing when to pass is key to running a successful buy-and-sell storage unit business.
Write Off Business-Related Expenses
I know this probably sounds like common sense to most seasoned storage auction hunters, but it’s still worth mentioning that you should write off any and all business-related expense. If your purchased something that’s used strictly for your business, you can generally write it off as an expense. When April 15th rolls around next year, you won’t have to pay taxes on the dollar amount spent on that item. Some common tax-deductible expenses in the storage auction business may include a truck or van, gas, storage facility (if it’s used to store the items you acquire), etc. Of course, you’ll want to take your CPA or tax accountant for more information on what the IRS considers to be a qualified tax-deductible expense.