While some experts are saying commercial real estate is the next shoe to drop for the financial system, many investors are undeterred.

They are competing hard to purchase a $1.1 billion portfolio of troubled commercial real estate loans made by banks that failed, The Wall Street Journal reports.

The Federal Deposit Insurance Corp. (FDIC) is auctioning the package of loans made by IndyMac Bank, Franklin Bank and other institutions that went belly up.

More than a dozen investors have made bids for the $1.1 billion portfolio.

"A lot of investors are anxious to invest cash they have raised," David Tobin, a principal with loan sale adviser Mission Capital Advisors, told The Journal.

The package constitutes only the tip of the iceberg of loans held by the FDIC, so investors will get plenty of chances to snap up the toxic assets.

So far many banks have been reluctant to sell their problem commercial real estate loans for a loss.

"They don't want to be blowing the entire mess out at the low point of the cycle," John Howley, executive director of loan sales at Cushman & Wakefield, told The Journal.

But eventually they’ll have to face the music.

Still, turnaround ace Wilbur Ross thinks it’s premature to dive into commercial real estate now.

“All of the components of real estate value are going in the wrong direction simultaneously,” Ross, CEO of WL Ross & Co, told Bloomberg.