On Mon, 13 Sep 2010 08:11:44 -0500, Ignoramus20659
wrote:

But in any case, while I am considering making a low bid, I want to
make sure that it does not become an expensive educational project in
how not to invest in real estate.

Any thoughts on this situation?

i

Iggy:-

From all of what's been said, personally, I don't think there is too
much downside on this deal if you get in closer to the starting price
than the asking and can easily afford to carry it for a few years
without tenants.

Most likely you will have decent income and a nice capital gain, and
will to some extent protect yourself against a further decline in the
value of the dollar as the economy improves. The neighborhood looks
decent working class-- trimmed lawns, cars in decent shape etc. The
size and condition look good to me too.

One factor if you've not been involved with commercial/industrial real
estate is that any kinds of repairs etc. seem to cost several times as
much as what residential work costs. It's not hard to drop $5K (or
$10K or $20K), even on a small building if there's a heating unit
failure and/or the parking lot or roof needs work. This can work in
your favor if competing properties that are on the market for tenants
are not in as good shape.

Good luck, and please let us know what happens!

P.S. I notice the demographics show a rather large surplus of females
compared to males (100:87). Is this typical in that sort of place?

On 2010-09-14, Spehro Pefhany wrote:
On Mon, 13 Sep 2010 08:11:44 -0500, Ignoramus20659
wrote:

But in any case, while I am considering making a low bid, I want to
make sure that it does not become an expensive educational project in
how not to invest in real estate.

Any thoughts on this situation?

i

Iggy:-

From all of what's been said, personally, I don't think there is too
much downside on this deal if you get in closer to the starting price
than the asking and can easily afford to carry it for a few years
without tenants.

Most likely you will have decent income and a nice capital gain, and
will to some extent protect yourself against a further decline in the
value of the dollar as the economy improves. The neighborhood looks
decent working class-- trimmed lawns, cars in decent shape etc. The
size and condition look good to me too.

One factor if you've not been involved with commercial/industrial real
estate is that any kinds of repairs etc. seem to cost several times as
much as what residential work costs. It's not hard to drop $5K (or
$10K or $20K), even on a small building if there's a heating unit
failure and/or the parking lot or roof needs work. This can work in
your favor if competing properties that are on the market for tenants
are not in as good shape.

OK, good to know, thanks.

Good luck, and please let us know what happens!

Thanks.

P.S. I notice the demographics show a rather large surplus of females
compared to males (100:87). Is this typical in that sort of place?

Those missing males are in prison.

i

On Tue, 14 Sep 2010 09:09:51 -0500, Ignoramus5013
wrote:

On 2010-09-14, Spehro Pefhany wrote:
On Mon, 13 Sep 2010 08:11:44 -0500, Ignoramus20659
wrote:

But in any case, while I am considering making a low bid, I want to
make sure that it does not become an expensive educational project in
how not to invest in real estate.

Any thoughts on this situation?

i

Iggy:-

From all of what's been said, personally, I don't think there is too
much downside on this deal if you get in closer to the starting price
than the asking and can easily afford to carry it for a few years
without tenants.

Most likely you will have decent income and a nice capital gain, and
will to some extent protect yourself against a further decline in the
value of the dollar as the economy improves. The neighborhood looks
decent working class-- trimmed lawns, cars in decent shape etc. The
size and condition look good to me too.

One factor if you've not been involved with commercial/industrial real
estate is that any kinds of repairs etc. seem to cost several times as
much as what residential work costs. It's not hard to drop $5K (or
$10K or $20K), even on a small building if there's a heating unit
failure and/or the parking lot or roof needs work. This can work in
your favor if competing properties that are on the market for tenants
are not in as good shape.

OK, good to know, thanks.

Good luck, and please let us know what happens!

Thanks.

P.S. I notice the demographics show a rather large surplus of females
compared to males (100:87). Is this typical in that sort of place?

Those missing males are in prison.

i

Indeed. Unfortunately in the black community in the US...1 in 4 black
males has a Felony Record..ie..they have been tried and convicted of a
Felony..which is a crime for which they can be held for more than one
year in a county jail.

In fact..while blacks only make up about 12-13% of America, they make up
a bit more than 50% of our prison population. This of course is followed
by Hispanics, then whites with asians being dead last.

Its not a big secret, just a very nasty fact of life.

My lady friend..a charming and georgious black lady..who is
conservative..notes that of her 4 brothers...2 of them are convicted and
currently incarcerated..the other 2 are civic stars, one being in the
military (or go to jail...some 20 yrs ago) and the other is a lawyer in
corporate law.

Leftwing education and civic outlook is not..not..not a good thing when
applied to blacks. After LBJs Great Society...their culture went right
into the toilet.

Gunner


I am the Sword of my Family
and the Shield of my Nation.
If sent, I will crush everything you have built,
burn everything you love,
and kill every one of you.
(Hebrew quote)

On 2010-09-14, Gunner Asch wrote:
On Tue, 14 Sep 2010 09:09:51 -0500, Ignoramus5013
wrote:

On 2010-09-14, Spehro Pefhany wrote:
On Mon, 13 Sep 2010 08:11:44 -0500, Ignoramus20659
wrote:

But in any case, while I am considering making a low bid, I want to
make sure that it does not become an expensive educational project in
how not to invest in real estate.

Any thoughts on this situation?

i

Iggy:-

From all of what's been said, personally, I don't think there is too
much downside on this deal if you get in closer to the starting price
than the asking and can easily afford to carry it for a few years
without tenants.

Most likely you will have decent income and a nice capital gain, and
will to some extent protect yourself against a further decline in the
value of the dollar as the economy improves. The neighborhood looks
decent working class-- trimmed lawns, cars in decent shape etc. The
size and condition look good to me too.

One factor if you've not been involved with commercial/industrial real
estate is that any kinds of repairs etc. seem to cost several times as
much as what residential work costs. It's not hard to drop $5K (or
$10K or $20K), even on a small building if there's a heating unit
failure and/or the parking lot or roof needs work. This can work in
your favor if competing properties that are on the market for tenants
are not in as good shape.

OK, good to know, thanks.

Good luck, and please let us know what happens!

Thanks.

P.S. I notice the demographics show a rather large surplus of females
compared to males (100:87). Is this typical in that sort of place?

Those missing males are in prison.

i

Indeed. Unfortunately in the black community in the US...1 in 4 black
males has a Felony Record..ie..they have been tried and convicted of a
Felony..which is a crime for which they can be held for more than one
year in a county jail.

In fact..while blacks only make up about 12-13% of America, they make up
a bit more than 50% of our prison population. This of course is followed
by Hispanics, then whites with asians being dead last.

Its not a big secret, just a very nasty fact of life.

My lady friend..a charming and georgious black lady..who is
conservative..notes that of her 4 brothers...2 of them are convicted and
currently incarcerated..the other 2 are civic stars, one being in the
military (or go to jail...some 20 yrs ago) and the other is a lawyer in
corporate law.

Leftwing education and civic outlook is not..not..not a good thing when
applied to blacks. After LBJs Great Society...their culture went right
into the toilet.

I am not sure if I want to think too much about why this is so, right
now I need to figure out if I should submit the bid or not.

i

Ignoramus5013 wrote:

I am not sure if I want to think too much about why this is so, right
now I need to figure out if I should submit the bid or not.

Ok, here are my last thoughts on this:

- If you do buy this property, you will own it and as a result, be
paying taxes, insurance, utilities, maintenance, etc. on it for some
time. You will not be able to sell it and get your money back in six
months if you decide it was a mistake.

- The current owner has not been able to find a new tenant for what, a
year? Despite your ability to offer very low rent, do you really think
you'll have an easier time finding a tenant or tenants?

- The current owner has not been able to sell the property in the normal
commercial real estate market either, and is thus selling at auction?
There would seem to be a reason that one of the large commercial real
estate management companies hasn't already purchased the place.

- I may be overly cautious, and perhaps that's why I'm poor since I
don't take big risks, but you really need to be careful on something
like this or you might find yourself taking a heavy loss.

- I have a large piece of investment property in a very nice area I'm
looking to sell if you are interested. It doesn't have rental potential
since it's undeveloped, however it has extremely low taxes (~$200/yr)
and is in an area that is pretty well guaranteed to continue to increase
in value.