          
          
          
                              Getting Started
          
               The best way to get started in government auctions
          is to go to government auctions.  Find out where they are
          held.  Typically, there is an inspection period.  The
          U.S. Customs Service auction of carpets and rugs
          mentioned above was scheduled for 2 p.m. on a Sunday, but
          the ad stated that the goods would be available for
          inspection by 1 p.m.
               If you can, attend the inspection period.  Look at
          each item as closely as possible. If there are
          "estimated" or 'appraised" values, disregard them.
          They're probably not meaningful.
               Instead, come up with your own ideas of what you
          think various items are worth.  If you have a particular
          area of expertise, focus there.  Then write down your
          estimates in a notebook.
               Your first time (perhaps your first few times at an
          auction), don't even expect to bid.  Instead, check on
          the people there.  See who the professionals are, the
          ones who bid to their limit and then drop out.  Look at
          the amateurs too, the ones who just "have" to have a
          certain item, no matter how much it costs.  You'll
          probably see some people get carried away with "auction
          fever" and wind up paying far too much.  Once you've seen
          some people act this way, you'll know the kind of
          behavior you should avoid.
               At the same time, pay attention to the procedures at
          the auction.  See how the items come up for bidding, how
          the auctioneer handles the bids, and what the winning
          bidders do after they've come out on top.
               Compare the winning bids with the numbers you've
          written in your notebook.  Were your bids too high or too
          low?  After a while you'll get an idea of what's
          realistic.
          
          
                              Getting Serious
          
               After you have been to one (or two or three)
          auction(s) and you have a feel for the characters and the
          action, you can plan to attend for real.  At this point,
          you need to approach the inspection more diligently.  Do
          some research.  If it's a vehicle sale, go to a car lot
          with comparable models.  See what they're selling for. 
          If it's office furniture, go to a used-furniture outlet. 
          For art objects, go to museums and ask your library for
          reference materials.
               Before you go into an auction, select the items on
          which you wish to bid.  Write down your maximum bid in
          your notebook.  If you intend to resell the items, figure
          out the top price you can pay and still earn a decent
          profit on the turnaround.  Whatever you do, don't go over
          that top bid -- and don't get caught up in auction fever.
               What if you spot a big-ticket item, a boat or luxury
          car you can't afford to purchase on your own?  If you're
          sure that you know an item's true value, see if you can
          find some partners to pool money with you and share the
          profits.
          
          
                              Getting Around
          
               Just because many of the examples in this book are
          from the New York Times, don't think that auctions are
          limited to big cities.  No matter where you live, you're
          likely to find auction notices published regularly in
          your local newspaper.
               For example, a notice appeared in the New Jersey
          Herald, a newspaper serving Sussex County, a semi-rural
          area in the northwestern corner of the state, far from
          metro New York.  the local of a local antique store had
          died several months earlier, and the store had not been
          opened since.  No private sales had taken place.  A toy
          store was about to move in, so the premises had to be
          cleared.  Virtually everything in the store was to be
          auctioned off with no reserve and no buyer's premium,
          "bring your own chair."
               Quite a bit of furniture was up for sale, including
          mahogany and redwood pieces, lamps, assorted glassware
          and a turn-of-the-century "Road Wagon," purportedly made
          by Studebaker.
               No matter where you live, you probably can find an
          estate auction and perhaps a police or sheriff's auction.
          
          
                            Buy Low, Sell High
          
               If you're buying for your own use, the auction is
          the end of the game.  But if you're hoping to make a
          profit on resale, it's only the beginning.  Now you have
          to find some way to sell your purchases -- at a profit.
               For small items, you might run garage sales or take
          a stall in a flea market.  Larger items can be stored in
          your house while you advertise them for sale, perhaps in
          a local newspaper or through a computer bulletin board. 
          Discount and secondhand stores may be good outlets,
          especially if you deal in large lots.
               Be creative.  For example, consider the bankruptcy
          sale of 280,000 Russ Togs garments as described earlier. 
          Naturally, the bankruptcy court wasn't going to sell this
          stuff one shirt at a time.  Buyers had to buy relatively
          large lots.
               If you could have gotten some Russ Togs clothes at
          a good price, what would you have done?  If you sold them
          to a store, you'd have had to settle for a price low
          enough to enable the retailer to make a profit, too. 
          Instead, why not aim at the users?  Go to a local high
          school or college; advertise in the school paper or post
          notices on bulletin boards.  Students often are eager to
          buy name brands for below-retail prices.
               If you find some success, stay with it.  Say you
          bought those Russ Togs clothes and disposed of them at a
          good profit.  Now you have outlets for selling clothing. 
          Check the ads for auctions to see when other lots of
          clothing will come up for sale.
               Above all, be patient and be prudent.  Start slowly,
          buying and selling a little at a time.  Learn from your
          mistakes -- everybody makes them.  Once you get the hang
          of it, you'll find government auctions are an enjoyable
          and profitable way to shop.
          
          
          
                            Keep Your Guard Up
          
               Auction Opportunities, mentioned above, warns buyers
          to beware of traveling auctions that breeze into town for
          a weekend and con the public with false or misleading
          advertising.  If you buy something and you subsequently
          become unhappy, you can't complain, because the company
          has moved on.
               Typically, auction buyers are lured to hotels or
          warehouses by ads that promise bankruptcy and liquidation
          sales or items seized by U.S. Customs.  (Remember, all
          U.S. Customs auctions are officially run by EG&G
          Dynatrend.)  Indeed, this merchandise is often shoddy,
          sold for 10 times its true value.
               So be wary of such ads, especially if the goods are
          subject to reserves.  Get the name and address of the
          auction company.  Inspect all merchandise and get a good
          idea of the retail value before you buy.
               Yes, you can find great values at government
          auctions, but you need to know what you're doing, so do
          your homework before you do your bidding.
          
          
                  To Learn More About Government Auctions
          
               Besides Auction Opportunities, mentioned above, the
          following are excellent sources of information:
               * The Official Government Auction Guide, by George
          Chelekis (Crown Publishers, $25).  In addition to
          explanatory text, this book has extensive lists of
          federal agencies, state agencies, specialty auctioneers,
          etc.
               * Buying Real Estate Foreclosures, by Melissa S.
          Kollen (McGraw-Hill, $14.95).  Dozens of sample forms and
          checklists help you find good deals in real estate.
               * How To Make Nothing But Money, by Dave Del Dotto
          (Warner Books, $11.95).  Much of this book is devoted to
          buying at auction.  It includes lists of government
          agencies and sample leases.
               * The National Auction Bulletin, 4419 West
          Tradewinds Ave., Fort Lauderdale FL 3308-4464; telephone
          800  327-2049, produces Info Pak, which contains recent
          auction prices of vehicles, boats, and planes.
               * National Automobile Dealer Association (NADA),
          Used Car Guides, available at newsstands or by calling
          800  544-6232.  With these guides, you can check out car
          prices before bidding.
               * Worldwide Business Exchange, a monthly newsletter
          with hundreds upon hundreds of leads, contacts, sources,
          and resources every month.  It is not an auction
          publication, but may help you sell what you buy at
          auction.  It also covers business financing, channels of
          distribution, franchises, new products, finder's fees,
          mergers & acquisitions, venture capital, joint ventures,
          partnerships and more.  A one year subscription is $48
          from Phlander Company, Dept. 70197, P. O. Box 5385,
          Cleveland TN 37320.  New subscribers can try it for 6
          months for $27.
          
          
          
