Buying & Selling Discussion

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This topic contains 3 replies, has 3 voices, and was last updated by  Kathleen 5 months ago.

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  • #1877

    nicktang
    Keymaster
    #1914

    Abby Zukowski
    Participant

    Hi all! Can someone please shed some light on the topic of underground oil tanks when purchasing a property? Should oil tanks always be pulled regardless of condition? How does this impact the purchase price negotiations and closing timeframe? What are the estimated costs of pulling the tank? Is it just as effective to empty the tank and leave it filled with sand? Thank you!

    #1920

    nicktang
    Keymaster

    When making offers to buy a property in the additional terms area of the contract I always put, subject to:

    Oil Tank Sweeps and
    Property Inspection.

    Once the property is under contract and we move out of attorney review i will then hire an oil tank company to do the sweep. If a tank is found i request for permission to get the tank pulled before closing. If the seller denies I bail out of contract. If the seller gives me permission to pull that means they have just given me permission to pull the tank regardless of how long it takes to do so. << This means f it takes 2 months, they are gonna have to wait 2 months. During the pull, if the tank is found to be leaking I will request the seller take care of remediation. If the seller denies and the work is massive I bail out of contract. It is a standard procedure that I pull the bank before ever closing as a leaking tank can cost 5k to 200k to take care of. You don't want to find out after you take ownership. - It typically takes 2 months to get a tank pulled. - The cost is typically 2k for a small tank and 3k for a big one. << I forgot the exact sizes but I can get you this detail shortly. - I use to think sandfill was ok but its not for all banks. This being so, these days I get them pulled no matter what.

    • This reply was modified 8 months, 1 week ago by  nicktang.
    #2796

    Kathleen
    Participant

    What is your opinion on double closes for REOs? As first time Investors, we currently have 4 offers extended on properties of this type.

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