Category - Storage Auction News

Want to know the odds of winning the lottery? It’s 175 million to one. Sigh. Odds of death by shark attack half that. Okay, let’s stay away from shark infested water.

Odds of finding “real treasure” inside a storage unit up for auction possibly better than the odds of being struck by lighting. Maybe…

Here are a few true accounts of auction hunters who found real treasure inside their storage units.

Storage auction bidder found a handkerchief inside a box. Carefully wrapped inside the handkerchief were 10 bars of pure gold. Each piece weighed one ounce and lot sold for $6,500.

Another auction hunter found a safe. Most safes are empty but this one had gold, silver, diamonds, pearls, cash, and the lot sold for $9,500.

Imagine finding $62,000 in cash inside your storage unit.

News agencies everywhere reported a colossal treasure find termed as the “Pirate’s Booty.” Californian auction hunter found 1,700 coins as well as a few gold and silver bars inside a Rubbermaid container. The coins appraised by an expert as "Pieces of Eight" dating back 200 years.

To get an idea of how much bullion was found, the Rubbermaid container weighed 250 pounds. Literally took three men to move the container out of the unit. Pirate Booty valued at $500,000!

I know what you’re thinking. The odds of you finding rare treasure are slim to none. Truth is, auction hunters find items valued at hundreds of thousands of dollars each year. Not every treasure find makes the news or is reported.

Unfortunately, the mega lottery treasures inside storage units are uncovered by law enforcement too. Feds found $1 Million in cash linked to a sham charity operation in Florida. Feds confiscated $1.5 Million in silver bars, silver and gold coins, as well as $75,000 in cash at a storage unit related to a drug arrest.

The treasure is out there, somewhere. Maybe you’ll find a troy ounce of gold or a few silver coins. For a Pirate Treasure chest find full of silver and gold, the odds may not be in your favor. The odds of digging up treasure inside a storage unit throughout years of auction hunting are probably better than winning the lotto. Maybe...

What sells?

That’s the sixty-four-thousand-dollar question. Each region of the USA has a different supply and demand. Warmer climates you will sell swim toys, water sports gear and other outdoor equipment faster than you would in colder climates.

Where you live dictates what is sellable. But maybe you are not seeing the picture clearly, even after having bought several storage units. What can you do to help you understand what’s hot in the market?

Keep a logbook of your inventory.

If you are not computer savvy, you may find a logbook at your local office supply store or drugstore. Spreadsheets however for those who are computer savvy can keep an accurate account of every item for sale and when it’s sold.

Why do this?

I was just getting to that. It’s all about “trends.” Amazon keeps a 100 best seller’s list which allows us to see what is hot right now. However, a few weeks from now that hot item may no longer make the list.

People are fickle when they impulse buy. Your merchandise may either fill a need or a want. If it’s a need, you may see these items sell quickly such as kitchenware. If it’s a want such as a vintage camera, it may take weeks or months before you see a return on that item.

By keeping a logbook you will actually see what’s currently trending in your area and online and will assist you in choosing the storage units that will help you flip your items quickly into a profit. Let’s say you see a unit with several bicycles, but they’re not selling in your area. Bid smart by not bidding.

Categorize your logbook in the way that is best for you. A spreadsheet could look something like this:

It’s clear that the current trend is girl’s clothing. By keeping a log of merchandise this maximizes how to build your inventory for profit.

Mind you, I more than understand many storage units up for auction contain unlabelled boxes and plastic containers. It’s a guessing game. The logbook or spreadsheet however is still meant as a guide to a profit state of mind when buying storage units.

Log.
Find the Trend.
Buy.

Remember, trends change like the wind so keep an accurate record of what sells and when. If you know the hot trends in your area or on the Internet you’ll know which storage units to bid up and which ones to let go.

Please leave your creative opinions in the box comment below.

Dave Hester the real life villain character from Storage Wars filed a lawsuit against A&E Network back in December. His claim was that the show’s producers would “salt” the storage units, which was in direct violation of the Communications Act of 1934. Did he win?

Nuuup!

Los Angeles Superior Court Judge Michael Johnson threw out Hester's claim of Unfair Business Practices. First round win goes to A&E.

Dave Hester’s arrest for DUI back in 2005 may have hurt in his credibility. Not only was he arrested but also convicted and sentenced to 30 days community service at a Goodwill Store.

But maybe that didn’t come into play in the lawsuit, however as a self-appointed whistle blower, Dave Hester’s record is not clean as a whistle.

Part of the lawsuit by Dave Hester against A&E stated:

“The truth is that (producers) regularly salt or plant the storage lockers that are the subject of the auctions portrayed on the series with valuable or unusual items to create drama and suspense for the show.”

To get a better understanding of this lawsuit saga watch the movie Quiz Show starring Ralph Fiennes. Back in the 1950s a scandal erupted around quiz shows alleging that the contestants were given assistance by the show's producers to arrange the outcome of a supposedly fair competition.

Guess what? Back then it was true.

Congress then passed a law prohibiting the fixing of quiz shows and any other form of contests. Superior Court Judge Michael Johnson however found Dave Hester’s claims against A&E unpersuasive.

Storage Wars is not a contest driven show. Hester was unable to prove the show was rigged. Do you think there will be a better “bad guy” than Dave on that show?

Nuuup!

Hester will pursue his claim against A&E for breach of contract and breach of the implied covenant of good faith and fair dealings. Do you think Dave believes he has a shot to win the second round against the network?

Yuuup!

We’ll have to wait and see.

You’re heard of swap meets. What about food swaps?

Desperate times in Greece, Spain and other parts of the world rekindled the bartering system. Greece once enjoyed high tourism, economic growth, early retirement and prosperity. Financial collapse of global markets hit the Greeks hard.

Many cannot buy food for their families as prices for food skyrocketed. The Greek government stepped in to allow grocery retailers to sell expired food at discounted prices.

Those who cannot afford to buy reverted to the ancient barter system for survival.

In Volus, Greece an organization named TEM exchanges goods and services such as, baby-sitting, computer assistance, and home-cooked meals to receive discounts at local businesses.

It is part alternative currency, part barter system, and part open-air market, whichever a person can do to get through these harsh economic times.

About 1,300 people have signed up to the informal bartering network and it’s still growing today.

Spaniards barter goods such as books or furniture in exchange for fresh produce at swap markets and these types of barter markets are spreading in every neighborhood throughout the country.

In Zimbabwe they bartered for doctor visits and medicines with chickens, goats, maize and even sacks of peanuts.

Food has become the most sought after commodity around many parts of the world. What was once taken for granted has now been stripped away in which only the rich can afford with ease.

Last February (2013) in Athens, Greece a brawl broke out among hundreds of Greeks during a free food giveaway to help the improvised. Not enough food for those who starve.

The world is in a world of hurt.

We barter to survive.

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.

Storage facilities have been experiencing an all-time high in auction attendance in the last few years thanks to the popularity of auction and resale reality shows. Eager treasure-hunters have been showing up in droves to auctions, often looking for huge profits like those shown on TV. Of course, people familiar with the industry know all too well that these treasure-seekers are unlikely to make much profit, and the high bids made by newbies have been damaging the bottom lines of serious buyers across the country.

Where auctions would once draw just a handful of well-seasoned veterans, facilities across the country began to see turnouts of dozens or even hundreds of people. Standard bids on units increased many-fold as newbies attempted to cash in on hidden treasures that didn't exist, and hefty auction attendance created logistical nightmares for facility owners and bidders. Indeed, the only people who benefited from the over-priced auctions were the auctioneers themselves.

Fortunately, there may be an end in sight to the madness. Thanks to the allegations by Dave Hester about the faked auctions on Storage Wars, more lay-people are learning about the disparity between the reality and fantasy of the storage auction industry. Now that would-be bidders are thinking twice about auction attendance, things may finally start returning to normal for professionals in the industry.

Indeed, Hester's allegations have raised plenty of questions about reality television in general. Even if he loses the lawsuit against the network, the publicity given to the suit has led many people and journalists to take a critical look at similar reality shows like American Pickers and Pawn Stars. Although many people in the resale business have expressed doubts about the realism of these programs for years, raising these questions through public media is a huge step toward potentially major changes in both the resale and television industries.

It's unlikely that auction hunting will ever return entirely to the “good old days” remembered by some seasoned veterans. Thanks to the Internet, auctions are too accessible to be a truly well-guarded secret, and most people are now aware of the industry whether they participate in it or not. Most likely, the most starry-eyed newbies will drift away while more serious newcomers stick with the industry and begin building careers or lucrative hobbies.

Even before the news of Hester's lawsuit broke, some auction hunters began reporting changes in auction attendance. According to discussion on StorageAuctionForums.com, attendance has been on a slow decline. While many auctions still draw deep-pocketed newbies, plenty of others have boasted small turn-outs of regular serious bidders. It's possible that this trend may continue as the industry stabilizes. Things may never be the same as they once were, but the possibility of making a real living from resale without over-inflated bids seems more realistic than it has been in a long time.