"Ignoramus5013" wrote in message
...
On 2010-09-13, ATP wrote:

"Ignoramus20659" wrote in message
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Been looking at finding some investment to make. There is a big
liquidation auction coming up. Some CNC/screw machine company is
bankrupt.

Along with it, a warehouse is offered for sale. It is actually big,
19,000 square feet (not a typo) on 1.4 acres of land.

The building is in good condition. The starting price for the building
is 200,000, which works out to slightly over 10 dollars per square foot.
For those who have not been buying and selling warehouses, this is a
very cheap price. (but see below)

This building is being currently marketed by a real estate firm and
the asking price is $299,000.

There is no evidence that there were any recent breakins into this
building (all windows are intact, old and dusty).

The building is located in a town (Dolton, IL) that is 81% black.

I compared crime stats of Dolton and Naperville, which is a big city
next to me. Some crime rares are about same (murder) but some (such as
burglaries) are about 4 times higher.

I drove around the area a lot just to get a feel and my feel is that
it is not a very high crime area. (houses are maintained, shops not
boarded up).

This place is 1 hour away from me.

I am not even sure of basic things, like will I be required to give
bribes to everyone, how will police treat me, will I be asked to pay
for protection to gangs etc.

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

Is it a "no reserve" auction? I'd be reluctant to compete against local
commercial real estate firms. They have a competitive advantage, knowing
the
local market.



It is a no reserve auction. Would they not always compete with me in
any situation?

Yes, but this is a situation where locals have a particular advantage, in a
sometimes arcane commercial real estate market.