Storage Auctions
The Storage Locker => New to Storage Auctions? => Topic started by: josepc on May 02, 2011, 03:34:31 PM
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Ok so I have only $400.00 my rent is 750.00, so I am short should I used this money and buy some storage lockers to come up with money or is it better off being saved?
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Ok so I have only $400.00 my rent is 750.00, so I am short should I used this money and buy some storage lockers to come up with money or is it better off being saved?
That is a question that is better off answered by you. Buying a unit is A GAMBLE for the most part. Even if you do got some good things in the unit, sometimes it will take awhile to get it sold for what it is WORTH. Question is, if you buy a unit how much time do you have to sell things off to get your money to pay rent.
I personally do not advise using your rent money to go and get lkr. I know sometimes it may seem worth the risk, but if you buy a lkr, and you dont get money for rent, in time, or worse you buy a crap unit and cant make your money back that you invested, you will be kicking yourself.
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As jross said....
For the most part (aside from some educated "guessing") this business involves gambling.
I think a common idea about gambling (cards, slots, craps, etc) is that you should never gamble more
than you can afford to lose.
If a person truly had $400 to work with and the rent on his living space was due in two weeks (or even four weeks) what a tragedy it would be to lose money on an auction buy and not be able to pay the rent. I think I'd wait until I had some savings to work with. Even then, one is supposed to have a safety net of three months or so in case the worst thing happens...lose a job, car wreck puts you out of work, whatever.
If it costs you $1500 a month to live (rent, utilities, gas, food, insurance, etc) then theoretically you
should have about $4,500 as a cushion. If you had that, then gambling $400 to $1,000 might be ok.
This is just my opinion, but I think one a fair amount of people would share.
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Dont mean to be pessimistic but the fact your asking this question to me means you probably shouldn't be in the business.
Rule number one in my book is don't go into debt and Don't spend what you cant afford to lose.
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Thanks for your input...
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A gamble is a gamble, if your only out a few bucks going to the auction to look at the units, and you absolutely see something you can double your money on within a day or two, it would seem like you get a winning ticket, or your numbers on roulette hit, or you get the point, you can lose and you can win..
How many ppl hit the lotto? Not many..
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I am going to add this, not to be an a$$ or point out the obvious for most of us on here. If you are a fan of Storage Wars or Auction Hunters. It is nothing like you see on TV. Not every unit you get is going to bring you riches. Most of us like to go in there and double our money, (which lately is not always the case). No where near every unit not even every person will hit a Jack Pot unit were you spend $350 on a 10x10 and make yourself $5,000. It is possible, but its like the lotto. I know a vet that has been doing this for 13 years, and her and her partner have never got a unit like that.
Just thought I run a little FYI for you.
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Jose is in the Houston area so he has plenty of opportunity to see a lot of auction doors pop open. (just ask Travis)
Just viewing the "bulk" of those units would tell the "real" story I'm sure; wouldn't even have to buy one
to start to get an understanding of the reality.
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If it were only this time last year, I would tell you to go for it. Nowadays, you would have better chance taking your money to Lake Charles & betting it all on black. I started in the storage auction business with only $400 of discretionary income but it was just that...discretionary income. I wasn't at risk of sleeping on the street if I bought a bad locker. Playing with the rent money is bad idea.