Storage Auctions
The Storage Locker => General Storage Auction Talk => Topic started by: Travis on February 23, 2015, 05:23:34 PM
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I was recently contacted by a guy who started a service which loans money to people who are about to lose their storage unit. The name of the company is Advanced Storage Lenders, you can Google them if you would like more information. Although they're targeting delinquent storage tenants, there doesn't seem to be much difference between their service and a traditional payday loan company. Apparently they don't hold the storage unit as collateral.
I've thought about starting a service like this in my area, but decided against it due to the time commitments involved. If I were going to start a service like this, I'd require the tenant to sign over their storage unit to me, that way I could resell the contents if they defaulted on the loan.
This might be a good gig for some of you though. If you let all of the storage facility managers in your area know about the service, you could do quite well through referrals. Not only that, the defaulted units could be a good source of inventory for your resale business.
What do you guys and gals think about this idea?
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I wonder how exactly this would work. If a person takes out a loan from you, they can immediately get caught up on their storage unit and regain access to it. At that time, they can go clear it out, and if they never pay you back, your collateral is gone.
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I wonder how exactly this would work. If a person takes out a loan from you, they can immediately get caught up on their storage unit and regain access to it. At that time, they can go clear it out, and if they never pay you back, your collateral is gone.
You would have to pay the storage facility in person, have the tenant sign the unit over to you and then overlock it. Too much of a hassle, in my opinion.
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When the tenant is delinquent the storage facility has controlled access to the units and it's contents. How do you verify the value of the units contents when the tenant can't show you what is in it? I've seen plenty of units with rents owned for $300, $500, $750, ETC. and there wasn't $100 worth of re-sellable goods in the unit. You gonna take the tenants word for the value of the property in the unit? You going to pay the storage facility some under the table money to let you see the contents before approving the loan? I don't think a single corporate owned facility would go for that.
I've had more then my share of storage units with multiple receipts showing how all the good stuff was; month after month taken out and sold to the pawn shop. By the time many a delinquent tenant gets to the point of asking for this type of loan, they have only left the junk that experts like us know how to hustle.
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You would have to pay the storage facility in person, have the tenant sign the unit over to you and then overlock it. Too much of a hassle, in my opinion.
That only brings it up to date. What happens if the tenant fails to pay in future months?
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That only brings it up to date. What happens if the tenant fails to pay in future months?
If it was in your name, it's your responsibility to pay it. If the tenant doesn't pay the loan and the money you've spent on rent, the property is your to sell. Like I said earlier, too much of a hassle for me.
You going to pay the storage facility some under the table money to let you see the contents before approving the loan?
I think most facility managers would unlock the unit to allow you to verify the value of the contents, as long as nothing was removed. After all, there is an incentive for them. Money and a lower default rate.
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I’ve never heard of anything like this before. Has anyone here ever used them? It sure sounds kind of interesting to me. It sounds a little odd. Especially signing over the unit.