Author - Travis Lane

Storage Auction Reality

If you haven't been a long-time fan of Storage Wars, you may not be able to answer the question: “Who is Brandi Passante?” On the other hand, this auction hunter has gained some notoriety recently for something completely unrelated to her show: Pornographic materials on the contentious site AreYouUp. Brandi sued the site creator for the photos and video footage, which she claims to be falsified, and for subsequent behaviors over social media.

This isn't the first time that Brandi Passante has caught unwanted attention on the web. An earlier rumor circulating among the tabloids suggested that she and her long-time boyfriend had a dark history with the law, even going so far as to circulate a supposed mug shot. Of course, any attempts to find reputable sources backing this up quickly reach a dead end.

These stories do raise some interesting questions, though. Who is Brandi Passante, really, and why is a reality TV star getting so much unwanted and unflattering media attention?

In reality, Brandi Passante is no different from any other Storage Wars star. She's the long-time partner of Jarrod Schulz, and the couple own and operate a thrift store in Orange, California. Together, they're called “The Young Guns” on the TV show due to their initial low budgets. After a few seasons of competing with the bigger players, though, they've started to amass wealth, which has helped both of them become household names among reality TV fans.

Storage Wars is an undeniably popular show, and Brandi Passante is often singled out for her attractiveness and shapely physique. It's hard to find search results about her that don't mention some of her better physical “assets,” and these qualities certainly aren't harming the show's ratings. Indeed, her good looks may have something to do with the recent trend of casting attractive young women in reality shows regardless of how realistic their participation may be.

Get To Know Mike Braiotta and Joe Pauletich from Storage Wars: New York

February 27, 2013

Storage Auction Reality

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Mike Braiotta and Joe Pauletich are the American idols of the storage auction world, right? Are they just actors playing scripted roles on TV? Or are they the real deal?

I can tell you that Joe and Mike are both real deals in their own way. They both have a history of working storage auctions professionally, so in that regard they are not merely actors. They were selected to star in Storage Wars: New York because they can walk the walk and talk the talk in an entertaining way.

Joe Pauletich, fondly known as “The Legend,” definitely lives up to the name. He’s been buying and selling the contents of New York storage rooms for more than 20 years, so his famous intuition and bidding demeanor are both genuine. Yes, he’s acting on a new TV show this year, so that makes him an actor. But he’s doing what he does best, just like those crocodile wrestlers down in the everglades.

Joe is from Queens, so he knows his home turf and he’s come to know his stuff very well. I his own words, "I have a sixth sense when it comes to buying storage rooms," Joe explained. "They all talk to you in a different way. When that door opens, it’s like stepping into another dimension." He calls it ESP, which stands for “Extraordinary Storage Perception.”

Known as Joe P to his local buyers, he owns SoHo Treasures, the shop where he retails his best storage auction finds. Joe explains how he decides what to bid on, “You have to look, and you see the quality of stuff, how they packed it, where the boxes came from. If it's a dirty person, I'm not so interested. If the people have money and if it was moved professionally, that will be something that I'm more interested in." Makes sense, doesn’t it?

Mike Braiotta, age 33, is a lot younger than Joe P, but he’s got quite a reputation built up from the years he’s been frequenting storage auctions. Mike is a Bronx native, now of Westchester, and affectionately known as “The Hustler” because he likes to buy and flip his auction finds as fast as humanly possible.

Mike says, “When I leave a locker,” I know what I’m going to sell. I try not to keep anything for more than five days.” And NY Daily News reports, “Long as he can remember, he says, he liked stuff. Just, you know, stuff. He wanted to dig into it, look through it, maybe own it.

"When I was a kid, I collected everything… Baseball cards, you name it. My uncle was a junkman and he took me to an auction when I was about 10. I learned everything from him."

Follow Mike and Joe, the American Storage Idols throughout this season and see what you can learn from a couple of pros while you’re sitting at home in your lounger instead of standing around in an auction crowd. Get yourself ready to put your education into action at local auctions whenever the time is right.

White Elephants To Avoid At Storage Auctions

February 25, 2013

Storage Auctions 101

Sometimes it’s just not worth it, unless you’re buying a unit for particular items and you’re willing to deal with whatever comes along for the ride. White elephants to avoid at storage auctions include:

1. big, old office photocopiers,

2. huge TVs (digital or analog),

3. used mattresses and box springs,

5. funeral coffins and urns,

6. used tires,

7. partially-full paint cans,

8. medical supplies,

9. 55 gallon drums labeled (or should be labeled) HAZMAT, and

10. a whole lot of anything you are unfamiliar with, and have no idea where to re-sell.

This list is just a sample, of course. But it should serve to clear your head and jog your memory whenever you’re tempted to go ahead and take on one or more white elephants in order to get some good stuff, too. Hopefully, the thought of dragging a huge TV or a vintage photocopier around in your truck for several weeks will trigger a flashing red light, complete with alarm buzzer now.

My simple advice is – JUST DON’T DO IT. Don’t take on the problems in the first place.

It’s easy to lose track of your time spent trying to sell and then give away the white elephants of the storage auction world. Worse yet, your trips to the dump will cost you even more time and also some money in the form of solid waste disposal fees. Not only will you lose out on anticipated profit, but you go in the hole on the items just to get rid of them.

To avoid a lose/lose proposition, stop and ask yourself if a particular risk is worth a big investment of your time. If you can see cumbersome, old items that will be a royal bother to move, store and re-sell, resist the urge to acquire the rest of the unit. Take a pass and move on to the next unit up for bid. Let somebody else take on the white elephants, because they will.

Getting the Most from Donated Items

February 14, 2013

Storage Auctions 101

When you spend time in the auction business, you quickly discover that not every item you find can be sold at a profit. Fortunately, there are a few ways to recover some of your investment on items that you can't or don't wish to sell. One of the most valuable things to consider is donating your items for a tax deduction. There are a lot of taxes associated with running your own resale business, and finding ways to reduce the impact of those taxes can be extremely beneficial in the long-term.

The concept of getting a tax deduction for donations is fairly straightforward. You simply gather up the items you don't wish to sell and deliver them to a tax-deductible non-profit organization like Goodwill or Salvation Army. Some of these organizations will even come pick up items from your house if you make arrangements in advance, which can cut down on the time and hassles associated with getting rid of merchandise. Once the items are donated, you'll receive a blank receipt. It's up for you to determine how much the item was worth when it comes time to claim your taxes.

For small donations under $500 or so, the IRS will usually trust your calculations as long as nothing else seems suspicious on your return. For larger donations, you will need more paperwork to prove the value of your items. You'll need to document how you got the item and how you derived its value. For very pricy items, the IRS will require an appraisal of the item.

The trick, then, to getting the most out of your donations is understanding exactly how these items are valued and how to get the most for the donations you make while keeping good records to back up those valuations. There are a few tools you can use to complete this:

Turbo Tax has a tool that allows you to track your donations year-round to make it easier to deduct them at the end of the year, especially if you're already doing your taxes on the site. Not only can you add the items, you can also get accurate valuations of their fair market value. http://turbotax.intuit.com/personal-taxes/itsdeductible/
You can also check the items you donate against the Salvation Army's donation list: http://www.use.salvationarmy.org/use/www_usn20.nsf/vw-text-dynamic-arrays/33CE09196410A2148825770B0054FF7A?openDocument&charset=utf-8. This should give you a good base-line even if you're donating to a different charity.
You can also learn more about the legalities of the donations by visiting the IRS's website here: http://www.irs.gov/pub/irs-pdf/p561.pdf

When valuing an item, it's also important to realize that the deduction is limited to the lower figure of either the basis (what you paid for the item) or its fair market value. This means that if you bought an item at auction for $100 and later found out that it's worth $1,500, you can only claim $100 in value for its donation.

One other thing to bear in mind: You can only claim donations of up to 50% of your adjusted gross income. The remainder can be carried over and applied to the next year's taxes. Your AGI is the amount of income you have left over after business expenses, half of your self-employment tax, IRA contributions, alimony payments, etc. This means that if your business runs with extremely tight profit margins – or if you nickel and dime your expenses – you may run into problems with high donations.

You also can't double-deduct: If you already deducted the price of buying a locker as a business expense, you cannot then deduct the value of the items in that locker as a charitable donation. Tax law can be tricky, and it's always a good idea to run this buy your accountant to prevent yourself from audits. By keeping careful records and being mindful of your options, you can maximize your deductions without getting in trouble with the IRS.

Storage Wars Star Mark Balelo Found Dead

February 12, 2013

Mark Balelo – sometimes known on the show as “Rico Suave”– was found dead on Monday, two days after being arrested on suspicion of drug possession. Fans knew him as a flamboyant, deep-pocketed buyer who appeared on several episodes during seasons two and three of Storage Wars. He made a name for himself on the show for bringing large amounts of cash to auctions and buying units out from under seasoned bidders on the show.

He was the owner of Balelo Inc., a company that bought and liquidated the contents of storage units in addition to other merchandise. The company employs over 50 people at several branches and offers services like “auctions, liquidations, reburbishing and repair, manufacturing, wholesale, retail, closeouts and distribution” according to his self-written biography on A&E's website. He was also well-known for his role in returning a $1 million stolen comic to movie star Nicholas Cage after it resurfaced in a storage auction a decade after its theft.

Balelo had received drug charges once before in 2009. He pled guilty to the charge of “sale or transport of a controlled substance” and spent 60 days in jail in addition to a three year parole. On Saturday, February 9, Balelo was arrested at his workplace for being under the influence of drugs and having possession of methamphetamine. His court date was scheduled for the 19^th.

Sources say that Balelo was distraught after the arrest. His body was found on Monday morning in his vehicle, which had been left running in a garage at his Simi Valley home. He was pronounced dead at the scene.

According to the autopsy report released by the Ventura County Coroner's Office, Balelo's death has been ruled a suicide. He was 40 years old.

Online Auction Sites Merge to Fill a Niche

January 16, 2013

SealedOnlineBids.com has recently merged with StorageBattles.com and will continue doing business under the latter's name. Altogether, these two sites have over 25,000 registered bidders and cover auctions for 1,000 different facilities.

StorageBattles holds virtual storage auctions. Rather than holding a live auction, storage facilities can list their units online with photos or videos. Bidders then find and bid on units in an eBay-style auction, and can retrieve the items after the sale. This is understandably an appealing option for storage facilities, which may not wish to deal with the mess and liability of crowded auctions, but these sales aren't without problems of their own.

We've talked in the past about whether these online storage auctions are legal. In case you missed it, here's the issue: In some states, property law wording regarding storage auctions is vague. In others, like Texas, it's pretty clear where and how auctions are supposed to occur.

According to Chapter 59 of the Texas Property Code, “A sale under this sub-chapter must be a public sale at the self storage facility or a reasonably near public place.”
By legal definition, the Internet cannot qualify as a “public place” since it's not a physical location. At present, StorageBattles seems confident that there will be no legal ramifications from holding these virtual auctions. All the same, we won't know whether their defense would hold up in court until after a lawsuit has occurred.

In the meanwhile, one thing is clear: This merger made good sense for StorageBattles. Assuming that the legality of online auctions gets cleared up, it's reasonable to guess that they'll become the wave of the future when it comes to storage auctions. Buying out SealedOnlineBids – their largest competitor – before these auctions really catch on is a smart move.

Update April 10th, 2014 - A new competitor, OnlineStorageAuctions.com has entered the online storage auction marketplace. This new site is completely free and offers storage facilities that are located in states where online storage auctions are questionable a legal alternative to online only storage auctions.

What Relationships Should You Build as a Resale Business?

January 1, 2013

Storage Auctions 101

As the old saying goes, no man is an island – and this is especially true for small business owners and independent contractors. The success of your resale business depends largely on the people you know and the contacts you build, and taking the time to cultivate those relationships may make the difference between a profitable business and a money pit. If you're serious about the auction business, here are a few people you should take the time to find:

Someone with a flat-bed truck or trailer. If you don't own one yourself, finding a way to rent or borrow this item can make a major difference in the ease of emptying your units. If you know someone who's willing to tow cars, furniture or other bulky items for a reasonable fee, it's well worth cultivating a relationship with that individual. The fewer trips you make while emptying a unit, the more time you'll have to deal with other aspects of the business.
A restoration and repair company. It might be worthwhile to learn restoration on your own, and fixing small appliances yourself can come in handy. As you start moving larger quantities of items, though, it's no longer practical to do your own restoration. Finding a company or two who can repair nice items at a reasonable rate will save you time and enhance your profits.
Other resalers. Sometimes you will end up with more items than you can reasonably resell on your own or simply have no interest in dealing with. Selling them to people who sell in greater bulk can often be a smart solution. Look at people who buy bulk clothing or own thrift stores; they'll often be quite willing to work with you.
Collectors. If you can find buyers in a specific niche, you'll have a good go-to person for unloading certain types of items that may not earn the same profits when sold in an open market. Some collectors are willing to spend a substantial sum on items that others may find essentially worthless, and the more collectors you have in your black book, the more possible buyers you'll have for any item you're trying to sell.
Antique dealers. Occasionally, you will come across a very nice item that is worth more than a layperson might realize. In these cases, it's always important to get a proper appraisal and speak with someone who knows about the item. By keeping in touch with a few antique dealers in different niches, you can improve your odds of profiting on these rare items. Whether you're getting an appraisal or selling the item itself, knowing someone in the industry will make a huge difference to your bottom line.
Scrappers. Having a good relationship with a scrap yard is smart when you deal with large quantities of appliances, electronics and other items with scrap metal. It may also be a good idea to find an independent scrapper who's willing to take whole items from you for a decent price so you don't waste time tearing them apart for scrap.

As you build your business, you're likely to develop many relationships with fellow bidders, auctioneers, storage facilities, buyers and more. Don't neglect that side of your business as these relationships can help your enterprise grow.

Using Storage Auctions to Furnish Your Home For Next to Nothing

January 1, 2013

When most people consider the storage auction industry, they're approaching it as a way to make money by reselling the items found inside. It's certainly possible to make a decent profit on items found in a storage unit; However, there's another option for your findings that may make more sense for casual bidders: Using the second-hand furnishings and other items for yourself.

When you're looking at a storage unit as a possible way to furnish your home, you have a bit more flexibility than you would while bidding for resale. You only have to worry about finding items you like and would use at a price lower than retail rather than considering profit margins. Since most storage units are filled with regular household items, shopping at a storage auction is a logical first step for people moving into new homes.

If you were planning to buy items second-hand anyway, you may be able to get then much cheaper from the storage auction than if you bought each piece separately from Craigslist or a thrift store. Some items, like treadmills, couches and refrigerators, are easy to find in storage units, and bidders may be unwilling to pay much for them due to their bulkiness and difficulty of storing them so costs will stay low.

Here are a few tips for shopping for yourself at an auction:

Pay attention to the cleanliness and organization of the unit. You may not be able to check the furniture for stains or damage, but you can get a general idea of how well the original owner may have maintained his possessions by looking at the unit itself. Items neatly stacked in boxes show a different picture than those strewn about or gathered in trash bags.
Think about what you're looking for in advance, but be flexible. Keep an eye out for specific styles or items that catch your eye, but be willing to budge if you find a good deal. Make sure to craft your budget in advance and stick to it.
Look for units that have multiple items in them. The more furniture and appliances you can get in a single unit, the better your odds of furnishing your house inexpensively.
Consider selling the extra items that you don't need. For example, if you buy a unit because of a couch and treadmill, see about selling off any electronics or other items. After selling the merchandise you don't want, you might be surprised how little the unit actually cost you. In some cases, you'll even recover all of the money you spent and get to keep some wonderful stuff for yourself for free.

Making a profit at a storage auction is not a guarantee, but keeping the items you want for yourself can definitely save you money. If you're not opposed to filling your home with second-hand furnishings, you can do quite well through auction-hunting.

Are Storage Auctions Declining in Popularity Now That People Know the Shows Are Fake?

January 1, 2013