Have you ever wondered what really happens behind the scenes at a self storage auction?
Come on we all have seen it on our television screens. Interested audiences bid on abandoned storage units, hoping to strike gold with whatever’s inside.
But have you ever thought about how does it work in real life?
And is it as exciting as it seems?
Just like others if you are also curious about diving into the self storage industry, you’re in the right place. Today, we will guide you about this thrilling venture and help you understand everything about self-storage auction.
Ready to begin?
What are Storage Units Auctions?
Storage facilities use storage auctions to sell the contents of a vacant unit so they can make room for a new renter. We can compare them with a standard auction because, in these auctions, bidders compete against one another to purchase the item.
However, the unit’s contents are not offered separately, but you will get a glimpse inside the unit compared to a close-up view before putting in your bid.
At storage auctions, you may run into both experienced buyers who know exactly what they need and inexperienced buyers who have yet to learn about anything in the auctions.
But if we talk about the procedures of storage units auction, you will observe that it varies from unit to unit, but adheres to the same pattern.
Here we will talk about how a professional company like Cedar Creek Capital can help investors navigate the intricacies of storage unit auctions by providing expert guidance and strategic insights.
With their extensive experience in the self-storage industry, Cedar Creek Capital can assist you in understanding the nuances of the auction process, ensuring you know what to expect and how to maximize your chances of securing valuable units. Whether you’re an experienced buyer or new to the auction scene, the experts help you identify the best opportunities, analyze the potential value of unit contents, and develop bidding strategies that align with your investment goals
How Do Storage Auctions Work?
Self storage facilities legally send notices to delinquent tenants, informing them of the impending auction and giving them a chance to settle their debts.
So, when the designated auction day comes, all the interested bidders gather at the facility and thoroughly inspect the units from the outside. After that, the auctioneer opens the bidding. After a few hours, the highest bidder wins and becomes the new owner of the unit and its belongings.
But what about the buyer? They are usually given a short period (usually 24-48 hours) to empty the purchased unit.
How to Prepare for Bidding at Storage Auctions?
Participating successfully in storage unit auctions online or in person requires a bit of preparation. Keep these tips in mind especially if you are a first-time bidder:
- Set a price limit – Before the auction starts, determine how much you’re willing to spend and stick to it. This helps prevent getting caught up in the heat of the moment and spending more than you can afford.
- Research More – With more knowledge and information, you can make more educated bids as well as identify the best storage units. Remember, Cedar Creek Capital can help you in this as they are experienced enough to handle research about storage units to buy.
- Inspection – Look for visible items that can hint at the unit’s value. For online auctions, carefully review any provided photos and descriptions.
- Read the terms carefully – Sometimes it requires immediate payment, or when the items need to be removed from the storage unit.
- Plan for transportation and storage – Make plans for how you will transport and store your purchased items. This is important if you buy large items or multiple units.
- Stay calm and focused – Auctions can be both exciting and competitive. So it’s important to stick to your budget and don’t let the competitive atmosphere lead you to make impulsive decisions.
Benefits of Storage Auctions:
Have a look at a few benefits of storage auctions:
- Potential for High Returns: Storage auctions offer the chance to acquire valuable items at a fraction of their worth, allowing you to resell them for a significant profit. Experts like Cedar Creek Capital can help you identify and evaluate high-potential auctions, maximizing your chances of acquiring valuable items that can be resold for significant profit.
- Low Initial Investment: Bidding on storage units typically requires a relatively small upfront cost, making it accessible for beginners looking to dip their toes into the resale market. You can get expert guidance on budget planning and strategic bidding to make the most of your initial investment in storage unit auctions.
- Excitement and Adventure: The thrill of not knowing exactly what’s inside a unit adds an element of adventure, making each auction an exciting opportunity to discover hidden treasures. Cedar Creek Capital’s expertise ensures you’re well-prepared for the unpredictable nature of auctions, turning the excitement of discovery into profitable opportunities.
- Diverse Inventory: Storage auctions can yield a wide range of items, from antiques and collectibles to everyday goods, offering variety and the possibility of finding unique and valuable pieces.
- Learning and Networking: Participating in storage auctions can help you build knowledge about different types of items, and their market value, and connect you with other auction enthusiasts and resellers.
Online Storage Unit Auctions vs Physical Auctions:
Many people get confused between online and physical storage auctions; they are not sure which option to choose. So, make sure you consider the benefits and challenges of each format:
- Online auctions – Offers convenience and the ability to participate from anywhere, which means they are ideal if the auction is not conveniently located nearby. You can easily view photos and descriptions of the storage unit’s contents beforehand so you can make more informed bids. Online auctions often extend over a couple of days, allowing you ample time to consider your bid.
- Physical auctions – With physical auctions, you can view the storage unit’s contents with your own eyes as it offers a better sense of the items’ condition and potential value. But the biggest drawback is, that you must be present at the physical auction facility, which is definitely not a convenient option.
Risks and Pitfalls of Storage Auctions:
Participating in storage auctions is both exciting and challenging. Here are some common challenges you might face and how to avoid them:
- Overbidding – People easily get caught up in the excitement of an auction and then spend more hours than they need to. So, it’s better to set a price limit before the auction starts and then stick to your price to avoid overbidding.
- Misjudging value – Sometimes the items may look valuable at first glance but turn out to be of very little value. With proper research, you can make more educated bids.
- Hidden costs – Winning a bid is the first step to a successful auction. Remember that you might also be responsible for cleaning out the unit and disposing of unwanted items, which can incur additional costs. Be sure to factor in these potential expenses when setting your budget.
Can You Buy Your Own Storage Unit at Auction?
No, you generally cannot buy your own storage unit at auction. Laws and auction policies typically prohibit owners from bidding on their own units to prevent conflicts of interest and ensure fair competition.
The purpose of the auction is to recover the unpaid rent by selling the unit’s contents to an unbiased buyer. If you’re facing the auction of your own storage unit, it’s best to settle your dues before the auction to avoid losing your belongings.
Where to buy Storage Units?
Cedar Creek Capital can assist you in locating the best storage unit auctions by leveraging their extensive network and market knowledge. They can guide you to reputable auction platforms, online listings, and local events, ensuring you access prime opportunities for acquiring storage units that meet your investment criteria.
Is Buying Storage Units Profitable?
Yes. Buying storage units can indeed be profitable, offering opportunities to acquire valuable items at low costs and potentially resell them for significant gains. The profitability largely depends on the items found and the market demand for those items.
Cedar Creek Capital can enhance your profitability by providing expert guidance on identifying high-value auctions, assessing potential returns, and strategically bidding to maximize your investment. Their market insights and support help you navigate the complexities of storage unit purchases, ensuring you make informed decisions that can lead to substantial financial rewards.
Cedar Creek Capital – Your Best Investment Advisor Within the Self-Auction Storage Industry:
We are a team of investment advisors and facilitators within the self-storage auction industry. We guide potential investors through the entire process of participating in storage unit auctions, from understanding the auction mechanics to identifying valuable units.
Our expertise helps clients make informed decisions and maximize their return on investment, while also minimizing risks. If you want to further diversify your portfolio, we recommend you to invest in self-storage through SDIRA which offers long-term growth and stability.
Who Should Consider Investing with Us?
We are targeting individuals and businesses interested in entering the resale market through self-storage auctions. This includes both beginners looking for low-cost investment opportunities and experienced resellers seeking to expand their inventory. After all, the investment strategy we provide is our success formula that is proven to increase your cash flow in a short time.
Our ideal audience is adventurous, enjoys the thrill of uncovering hidden treasures, and is willing to take calculated risks to achieve high returns on their investments.
Conclusion – Storage Unit Purchase is Now Easy!
It is recommended to prepare fully for participating in a storage auction. The inability to clean the unit may end in high fees that could further deplete your budget. The process of placing a bid on a unit of storage might be competitive, so if it’s the first time you’ve done so, you might skip it altogether.
If you acquire a storage unit at a particular location, you’ll have more time to look through your finds, but keep in mind that you will only sometimes be able to go to the container.
For detailed guidance and expert recommendations on investing in storage units, visit Cedar Creek Capital’s portfolio page, where you can explore our successful case studies, gain insights from our extensive experience, and connect with our team of professionals dedicated to helping you make informed and profitable investment decisions.
