Has anyone bought a sorority or frat house before?

Question

Hi all!

I was presented with an opportunity to purchase a sorority house at a large University. It would sleep 65 students but they don't have single rooms some are tris, quads, and even 5 to a sleeping room.

Has anyone had any success with such a strange property?

Meghan McCallum · Answer

Never did. It was too far from me to know that I could keep close account of the property and tenants.

Matt Hurley · Answer

@Meghan McCallum Found this thread because I came across something similar in my neck of the woods. How did this deal end up for you? Did you go for it?

Adam Christopher Zaleski · Answer

@Meghan McCallum  I agree that if it already had a 10-15 year contract it would have already been purchased or never even been for sale.

Here's the deal. If you have a large cushion of cash, you purchase it first and then find a tenant later. People who have deep pockets can afford to take bigger risks and collect higher returns. The longer it is vacant, the better the deal. Good luck!

Meghan McCallum · Answer

Right now there is no tenant. I am working with the listsing agent to see if I can find that next frat or sororroity to write a 10-15 year contact. That's why I'm kind of excited. It'd be gone if it had a contact on it. So now, I'm hoping to really get a deal.

Peter Tverdov · Answer

Find out what the Lease is like. You need to treat sorority/frats like a commercial property. If it's a one year Lease they could choose not to renew and then you are up the creek trying to rent a 65 bed apartment to regular students. If it's a 10-15 year lease then you might have something IMO.

Meghan McCallum · Answer

Well,

I know its for sale because the sorority has outgrown it and has built a new house at a better location on campus.

Colleen F. · Answer

Please keep us updated on this. It could  be an interesting story. I would ask  why is it for sale?  Is it a valid occupancy use?   Is it up to fire code?  Is it on  rented university land or is it owned outright with the land.  Will it continue to be usable at that level of  occupancy?  And of course run the numbers.   Me I would check the insurance cost.