How Much Can You Really Make Buying and Flipping Storage Units?

Is There Really A Method To Flipping Storage Units?

Buying and flipping storage units has become a popular and exciting way to make money, especially for those who love the thrill of discovering hidden treasures.

You can buy storage units at auctions where the contents are unknown or only partially visible, and then resell the valuable items you find inside for a profit.

The big question is: How much can you really make doing this? And is there a method, or is it more like educated gambling?

Some flippers have turned this into a six figure business, while others make a nice side income by flipping just a few units each year.

In this article, we’ll break down how storage unit flipping works, share real life stories of massive profits, and provide tips on what to look for to maximize your return on investment (ROI).

The Money Making Potential of Storage units

Storage unit flipping is all about buying abandoned or auctioned off storage units and reselling the contents.

The units are typically sold because the owner defaulted on their storage payments, and the storage company is trying to recover its losses.

What makes this venture so appealing is the mystery, you're bidding on a unit without knowing exactly what's inside.

But the right strategy, a bit of luck, and a sharp eye for valuable items can turn a small investment into big profits.

Some people make hundreds of dollars per unit, while others strike gold with rare and valuable finds worth thousands. The key is knowing what to look for and where to sell the items you discover.

How to Get Started with Storage unit Flipping

If you’re new to storage unit flipping, here’s how to get started:

1. Find Local Auctions: Storage auctions take place in person and online. Start by researching local facilities to see when their next auction is scheduled. Online platforms are also a great way to bid from the comfort of your home.
   

2. Set a Budget: It’s easy to get carried away during a bidding war. Set a strict budget for yourself before the auction starts and stick to it. Keep in mind that you’ll also need to account for the cost of hauling items, cleaning, and possibly refurbishing them.
   

3. Have a Resale Strategy: Once you’ve bought a unit, you need to know where and how you’ll sell the items inside. Yard sales, eBay, Craigslist, and Facebook Marketplace are popular platforms, but for higher end or niche items, you may need to contact specialty buyers or stores.
   

4. Storage Space: You’ll need a place to put all your junk. Depending on the size of the unit you win, it could be a lot. If you don’t have extra room at home, you’ll need to factor in the cost of temporary storage.

What Are the Most Valuable Things to Look For?

While the thrill of finding a hidden safe packed with cash is the stuff of legend, seasoned storage flippers know that the real money is often in less obvious items.

Knowing what to look for, even if you can only catch a small glimpse of a unit’s contents, can give you an edge over other bidders.

Here are some of the most lucrative and overlooked items seasoned flippers know to look for:

1. Crystals and Gemstones: Large crystals like amethyst geodes or quartz are often left behind because they’re bulky, but their value can be sky high. A large, high quality amethyst can sell for several thousand dollars. People often store these as decorative items or part of collections, not realizing their worth when they default on storage payments.

2. Vintage Furniture: High end vintage or antique furniture is always in demand, especially if it’s made of solid wood or has unique craftsmanship. Even pieces that are a little beat up can be restored and sold for a significant profit. Mid century modern furniture, in particular, is highly sought after by collectors and interior designers.
   

3. Retro Electronics: Vintage electronics, especially gaming consoles and record players, can fetch a high price. For instance, original Nintendo, Sega, or Atari consoles and games in good condition are highly collectible and can sell for hundreds or even thousands of dollars.
   

4. Musical Instruments: Musical instruments, especially guitars, are often forgotten in storage units. Brands like Gibson, Fender, and Martin are particularly valuable, and even used or slightly damaged instruments can bring in big money.

5. Jewelry and Watches: While gold and silver jewelry is an obvious find, vintage or high end watches are often overlooked. Watch brands like Rolex, Patek Philippe, and Omega can sell for thousands of dollars, even if they need some restoration. Additionally, costume jewelry from the 1920s to 1960s can also have significant value.

6. Rare Vinyl Records: Vinyl collectors are willing to pay top dollar for rare and first edition records. If you find a crate full of old records, don’t dismiss them as junk. Some records, especially from iconic artists like The Beatles, The Rolling Stones, and Bob Dylan, can be worth thousands.

7. Artwork: Art is often stored and forgotten about, but it can be one of the most valuable things you find. Paintings, sculptures, and limited edition prints from famous or up and coming artists can fetch high prices at auction. Knowing how to authenticate art is key to profiting from this type of find.

8. Vintage Tools: Tools, especially vintage ones from brands like Snap On or Stanley, can be worth a lot of money. Collectors and craftsmen are always on the lookout for durable, well made tools from the mid 20th century, which can sell for far more than you’d expect.

How Much Can You Make Pawning Storage unit Contents?

The amount of money you can make from flipping storage units depends on the unit you purchase and how well you market and sell the items inside. Here’s a breakdown of potential earnings:

• Low End Units: These units typically contain everyday household items, old clothes, and maybe a few small electronics. You might pay $100 $300 for one of these units and expect to make around $500 $1,000 in profit.
  

• Mid Tier Units: If you spend between $500 $1,000, you’re likely to find a mix of mid value items, such as decent furniture, collectibles, or electronics. These units can net you anywhere from $2,000 $5,000 in profit.
  

• High End Units: These units might cost you $1,500 or more, but they’re where you can find the true gems, vintage goods, artwork, musical instruments, and luxury items. If you get lucky, the profit margin on high end units can be massive, sometimes reaching $10,000 or more.

The Most Effective Flipping Formula From a Famous Flipper

If you want to succeed in the world of storage flipping and avoid costly mistakes, learning from the best in the business is crucial.

One famous flipper, Darrell Sheets, who gained prominence on the TV show Storage Wars, has consistently managed to profit by employing specific strategies that anyone can adopt to increase their chances of winning valuable items and driving up bids on competitors.

Darrell Sheets is known for being methodical, aggressive, and strategic with his bids, and these tactics have kept him profitable in an industry full of risk.

Here are Darrell’s secret techniques he uses to pick the right units, stay profitable, and outperform his competition.

1. Know Your Profit Margins Before You Bid

The most important strategy when flipping storage units is to always know your profit margins before you place a bid. It can be tempting to let emotions get the best of you in a heated auction, but professional flippers like Sheets know that sticking to the numbers is key to long term success.

To start, create a mental inventory of what you can see inside the storage unit. Make note of any visible high value items, whether it’s a branded piece of furniture, boxes labeled with electronics, or collectibles.

Have a rough estimate of what these items are worth. Sheets is known for being able to quickly assess what’s in a unit based on experience and research.

Let’s say you spot an antique dresser in the back of the unit, and based on your research, you know it could fetch $800 in its current condition.

If the visible items alone can bring you a profit of $1,500 but you estimate you’ll spend $500 cleaning and transporting the unit’s contents, then you should cap your bid at $1,000 to maintain a healthy margin.

The rule here is: know your costs upfront, and never go over them.

2. Play the Crowd: Drive Up the Bids on Competitors

One of the biggest power plays Sheets employs is reading the room at an auction. You’ll notice that during auctions, there are often a few aggressive bidders who are itching to win. Sheets often plays these bidders by driving the price up, without any intention of winning that particular unit.

By throwing out a few well timed bids on units you have no real interest in, you can push less experienced flippers into overpaying.

Here’s how it works: when you see a competitor get excited about a unit and they’re bidding aggressively, you jump in with bids that make them think you’re equally eager. This subtle pressure can cause them to overshoot their budget.

However, don’t go overboard. There’s a fine line between driving up bids and accidentally getting stuck with a unit you didn’t want. Practice the art of reading people, watch for the telltale signs of desperation from bidders who aren’t willing to back down.

3. Go for the “Sleeper” Units

In auctions, sometimes the most profitable units are the ones that everyone overlooks. Sheets became a legend in the industry by identifying so called “sleeper” units, those that seem unremarkable on the surface but hold hidden gems.

Here’s the strategy: when a unit doesn’t seem to excite the crowd, take a closer look at what’s not being noticed. Maybe the unit looks cluttered, and other bidders assume it’s full of junk.

But if you spot a high quality item hidden in the back or notice branded boxes that typically house electronics, you might find yourself walking away with a goldmine for a fraction of the cost.

4. How to Drive Bids Up Without Overspending

Let’s say you’ve found a unit that’s worth a shot, but you don’t want to overspend. Here’s a trick that Sheets often used: stay silent for most of the auction. Don’t jump into the bidding right away. Let the less experienced bidders fight it out for the first few minutes.

Then, when the bidding starts to slow down, make your move. By waiting, you minimize the chance of getting caught up in a bidding war.

You also make it clear that you’re serious about winning when you finally enter the fray, which can intimidate other bidders who may decide not to push back.

5. Get Familiar with Specific Types of Units

Another method used by professional flippers is to specialize in certain types of units. Sheets has talked about how knowing what kind of unit he’s bidding on helps him estimate the value inside more accurately. For example:

• Business units: Sometimes, small businesses rent storage spaces to keep excess inventory or equipment. These units are often packed with valuable merchandise or tools. A unit full of office supplies might not look exciting, but it could house expensive electronics, office chairs, or new inventory still in packaging.
  

• Collectors’ units: Look for units that clearly belonged to a collector. These units can be filled with everything from valuable antiques to rare toys, vinyl records, or vintage furniture. Once you’ve identified a unit from a collector, you can bet there are some hidden treasures inside, and if you’re an expert in that particular market, you can bid strategically.
  

• Art and Décor: High end artwork and sculptures are often stored in units because of their size and fragility. Look for well wrapped or crated items that could signal valuable artwork or décor. These items might look bulky but could fetch thousands if you know the right buyers.

6. Spotting Valuable Hidden Gems

When you’re at an auction, you won’t always get a clear view of what’s inside the unit, but here are some subtle signs that the unit might be valuable:

• Branded moving boxes: People who hire professional movers often have higher value items. If you see neatly stacked, branded moving boxes, it’s a sign that someone paid for a service to move their things, which could indicate the presence of valuable belongings.
  

• Cleanliness and Organization: Units that are clean and well organized are usually a good sign. People tend to take better care of their valuable items. If a unit looks tidy, there’s a good chance it was important to the owner, and they took time to store valuable goods inside.
  

• Military memorabilia: Flags, uniforms, medals, and other military related items are often overlooked but can be worth a lot of money, especially if they’re from World War II or earlier. Many storage buyers don’t know the market for these items, but collectors are willing to pay top dollar for authentic memorabilia.

How to Monetize Your Storage Flipping Business Beyond Sales

Once you’ve got a steady flow of storage units to flip, there are other ways to monetize your finds:

• Start a YouTube Channel: People love watching storage flippers uncover hidden treasures. Starting a YouTube channel where you document your storage unit finds can bring in ad revenue and sponsorship deals.
  

• Offer Restoration Services: If you’re good at restoring furniture, tools, or electronics, offering restoration services can increase your profits. Refurbished items often sell for double or triple their original value.
  

• Sell Wholesale: Once you’ve built a network of buyers, you can sell large quantities of items at wholesale prices. This is a great way to move inventory quickly and make room for new units.

The BMM Takeaway

Storage flipping can be a highly lucrative venture if you’re smart about it.

While not every unit will yield high returns, those who know what to look for and how to sell effectively can make thousands of dollars per unit.

The key is strategy, research, and persistence.