View Full Version : 483 % return on investment? soulds like snake oil

20-08-2014, 07:49

and when you read further, the truth comes out, it is....

23-08-2014, 14:35
483% percent, very misleading. Typical Yahoo! drama I just talked to someone who started a second storage unit facility here. The first one in the village (population 514) has about 40 units, but they are all taken. So he paid, maybe, $100,000 to construct the new place, also with 40 units. If he rents all of them at $50/month, that's $2000/month, or $24k/year. Looks like he's whole after 4 years. But the loan from the bank carries interest and he also pays taxes, of, say $2000/year. So he won't pay back the loan and get back to zero for 5-6 years. And if he only rents half of his spaces, he's looking at 15 years to get back to even. That's not counting his time maintaining the place, which time he could be using to work at another job, making $thousands/year.

I am renting 2 spaces to store all my Ebay stuff.

What's cool is to go to a "storage unit auction." After the renter doesn't pay for several months, the facility owner has an auction of the contents. In the city, there are auctions with maybe 10 units (out of 100) that are rent-delinquent. They get the bolt-cutters, cut the padlock, and the bidders look at the doorway. You are not allowed to go into the unit, you have to stand in the doorway only. Usually, there is too much stuff packed inside, so you can only guess at most of the contents, mostly it is hidden.

There is an American TV program, called "Storage Wars" which shows how these auctions go (plus a lot of added show drama). For example, the man bids $800 and then discovers a new Mercedes hidden behind some old furniture, or looking inside from the doorway, you can see the back of a 3-meter big-screen TV, so you bid $500, but then it turns out the front of the screen is cracked...