If you want to buy storage units, you’re aiming at only one goal: to be liquid. That is, to make these pieces of real estate profitable. So, how do you turn that hulking, often insolvent mass into something worth investing in? Turns out, it depends on many things. Here’s a short guide to buying storage units.
The only methodology for buying storage units is: buy cheap, sell expensive
It’s also something that makes sense in investing, and in economics in general. However, this depends on whether you want to rent these storage units or sell them. These are the main determinants of your future strategies. First, you need to know the answer to two main questions:
- „Do I want to make a more steady income over an extended period of time?“, and
- „Do I want fat stacks of cash immediately?“
You can only choose one, and both are the main determinants of your real estate investment strategies. However, what we’re dealing with here are not the storage units themselves, but their contents. We just felt this was worth a mention to get it out of the way.
How to deal with the contents inside?
Well, this is the main question. Storage units Florida are rarely empty, and even more rarely liquid – profitable. This means, in short, that you will have to deal with piles of things that you will eventually find inside. This means that you will have to shift into other people’s stuff. These come in three main categories:
- The stuff you will want to keep;
- Other stuff, that you will want to throw away;
- The things you aren’t completely certain about.
Now, the greatest pile that you will have with these is the 2nd one. Obviously. When you’re buying storage units, this is a must. Most of this stuff you will not be able to turn into financial assets. But, out of those that you can, you will make some extra buck on the side.
How much money can one expect from buying storage units?
Not too much, mind you. Speaking of averages, it’s about as good as a side job. It’s a hard side job, but it can bring you some extra income. However, you may not be the average. You may have a stroke of luck and find gold jewelry several times in a row, or just find nothing of worth at all. Statistics is a tricky science, after all. Abandoned and forfeited storage units, just to be clear, are not pirate treasure islands. But you can make a steady buck if you need it during some financial „dark hour“ (don’t be ashamed, we’ve all had those at some point during our lives).
What do the numbers say?
Well, it’s hard to tell, considering there are very few statistics, to begin with. The problem is, what you gain from storage auctions is not something you file in your tax returns as you would with your usual income. It’s certainly not going to make you a billionaire, and it depends on how much the people are willing to risk in order to obtain something. The usual investing motto, which says that the risk during an investment is averagely proportional to the return on investment doesn’t apply here for one simple reason. It’s because you don’t know, and have no method of knowing what the reward is. They’ve sealed the boxes tightly shut, and it’s impossible to tell.
How do I turn a buck after buying storage units?
Well, it depends. Amazon. eBay. Craigslist. Most of the wares, as we have mentioned, will not be of high quality. There’s something that you should know before buying storage units – the valuables might „go missing“. In other words, the owners of the storage might confiscate them. Of course, this doesn’t happen often, but it does happen. This doesn’t mean that the stuff you will find will have zero value. More often than not, they will more than just cover the expenses and the sales tax. However, it takes its sweet time to go from one auction to another, so you have to factor in the time. If you wish to visit several storage units and sell the belongings, make sure they’re within reasonable distance of each other.
If selling the forfeited belongings isn’t profitable, what is?
Well, for one, you could make something of a real estate investment. Basically, you buy storage units, you give them a fresh new look and you rent them or sell them, whichever you think would be more profitable. You have to weigh in the following:
- What’s the population like? Do they move often, or do they remain in the same house for several generations?
- Is there a demographic boom going on? If so, the moving (and, therefore storage) industry is bound to thrive);
- Is the area wealthy? If it’s poor, the return on investment might take it’s time if you’re renting, or not at all if you’re selling.
If you’re buying stuff at an auction, don’t get overexcited
This is some well-meaning advice. You could end up paying much, much more than it’s actually worth. It only takes two hot-headed people to drive the price of storage contents insanely high. Auctions are full of mind games. If you believe that such a high price is not worth it, just give up – chances are that you’re right. Only packing services Florida know what’s exactly within those boxes.
To finish this article, we must conclude that buying storage units is good for a side business if you’re doing it alone. If you have a group of friends, maybe you could build a business out of it. However, if the potential risks seem too great, make sure you bring an experienced auctioneer!