Acquiring a house.

archangel689 · #1 10-30-2006, 12:17 PM

Hi guys,

After graduation, I've managed to secure a savings of around $30,000 dollars. This is my own hard earned cash. It is my intention to buy a house near the university and rent it to the undergraduate chapter.

Ideally, the local chapter would be able to take hold of the deed in a rent to own fashion. The university does not allow fraternities to have houses at our university, so brothers will rent houses from the local slum lords. All the groups do this. Although, some groups rent across the river, where it is far more pricey and students don't want to walk that far.

In this situation, you can't modify or make changes to the house. As a founder of the fraternity I believe it would be in our best interests to own a house--in terms of long-term survival.

There is very little for sale in the area, and what is for sale amounts to tiny houses that are over priced dumps. I am going to call our old land lord today to see if there are any slow moving properties in the area he'd like to sell.

There is a huge house he owns, which he bought for 100 dollars, but the attic Dormer has collapsed and it's a project.... But its over 3000 sq ft.

Does anyone have any ideas. I mean the area around the university is a complete slum and houses are torn down all the time... problem is that the people who are selling want 100k for a dump becuase they think the university will eventually buy it for expansion, meanwhile the university is nearly at bankrupcy because of all the stuff they just built

RU OX Alum · #2 10-30-2006, 12:29 PM

Every house in every town in this country is for sale, you just have to find the price...all that aside, hell yeah man, you're doing a great thing for your brothers. I would call every land lord the way you did yours, or find a place you like and then find out info about and put in a bid...good luck.

33girl · #3 10-30-2006, 01:08 PM

Where are you guys looking at? I can't imagine having anything resembling a fraternity house in the South Side, just for the parking issues alone. PM me if you want.

DSTCHAOS · #4 10-30-2006, 01:41 PM

I wouldn't do it.

DeltAlum · #5 10-30-2006, 01:41 PM

An older Delt I know did this a couple of times and lost a lot of money due to damages, etc.

aopirose · #6 10-30-2006, 01:58 PM

Very nice gesture but don't do it.

archangel689 · #7 10-30-2006, 02:07 PM

I'm kind of surprised that no one put any more thought into this then "don't do it."

AlphaFrog · #8 10-30-2006, 02:14 PM

Quote:

Originally Posted by archangel689

I'm kind of surprised that no one put any more thought into this then "don't do it."

That's a pretty thoughtful thing to say, actually...

I mean, do you just want advice, or do you want GOOD advice?

DSTCHAOS · #9 10-30-2006, 02:32 PM

Quote:

Originally Posted by archangel689

I'm kind of surprised that no one put any more thought into this then "don't do it."

I'm surprised you had to come ask us about investing YOUR money and then have the nerve to question our responses.

DSTCHAOS · #10 10-30-2006, 02:34 PM

Quote:

Originally Posted by AlphaFrog

That's a pretty thoughtful thing to say, actually...

I mean, do you just want advice, or do you want GOOD advice?

Right and we could type dissertations about the endless possibilities and pros and cons based on our experiences or whatever. But it still boils down to the fact that it's not OUR money that he's asking advice on and some of us think it isn't a wise decision and wouldn't do it.

PhrozenGod01 · #11 10-30-2006, 02:51 PM

Quote:

Originally Posted by archangel689

Hi guys,

After graduation, I've managed to secure a savings of around $30,000 dollars. This is my own hard earned cash. It is my intention to buy a house near the university and rent it to the undergraduate chapter.

Ideally, the local chapter would be able to take hold of the deed in a rent to own fashion. The university does not allow fraternities to have houses at our university, so brothers will rent houses from the local slum lords. All the groups do this. Although, some groups rent across the river, where it is far more pricey and students don't want to walk that far.

In this situation, you can't modify or make changes to the house. As a founder of the fraternity I believe it would be in our best interests to own a house--in terms of long-term survival.

There is very little for sale in the area, and what is for sale amounts to tiny houses that are over priced dumps. I am going to call our old land lord today to see if there are any slow moving properties in the area he'd like to sell.

There is a huge house he owns, which he bought for 100 dollars, but the attic Dormer has collapsed and it's a project.... But its over 3000 sq ft.

Does anyone have any ideas. I mean the area around the university is a complete slum and houses are torn down all the time... problem is that the people who are selling want 100k for a dump becuase they think the university will eventually buy it for expansion, meanwhile the university is nearly at bankrupcy because of all the stuff they just built

I'm no real estate agent, nor do I go to your school, but I can see several red flags in what you originally stated. If your university doesn't require housing for GLO's, let alone even allow them, it seems like you would be throwing your money away for status alone. It might be cool to have a basement to throw mediocre parties in, but the euphoria will end quickly. In addition, one student, who gets sick or something, at your new place could easily cost you more than $30,000. A better investment would be to throw parties and events at other establishments that would share some of your risks with your organization. You will probably make more money for the undergrads right now, and then you can wait around for something prime in your area. Look in the long term.

-The king of GC

AlphaFrog · #12 10-30-2006, 03:05 PM

Quote:

Originally Posted by PhrozenGod01

-The king of GC

Hail.

RU OX Alum · #13 10-30-2006, 03:09 PM

I would form an Alumni Corp. to own the house that rents to undergrads, don't buy the house yourself, that $30K is yours, keep it that way, maybe donate 10-15 and let your brothers pay the rest

33girl · #14 10-30-2006, 03:18 PM

Quote:

Originally Posted by PhrozenGod01

I'm no real estate agent, nor do I go to your school, but I can see several red flags in what you originally stated. If your university doesn't require housing for GLO's, let alone even allow them, it seems like you would be throwing your money away for status alone. It might be cool to have a basement to throw mediocre parties in, but the euphoria will end quickly. In addition, one student, who gets sick or something, at your new place could easily cost you more than $30,000. A better investment would be to throw parties and events at other establishments that would share some of your risks with your organization. You will probably make more money for the undergrads right now, and then you can wait around for something prime in your area. Look in the long term.

-The king of GC

OK, first of all, the "establishments" that are closest to his school aren't going to shut down for the night just for a mixer. As for open parties, there's no way they could throw one at a bar. It would be a complete trainwreck and also, would attract more nonstudents than students.

GLOs ARE allowed at the university...I'm not sure where you got the idea they aren't, unless you mean houses. Houses are not allowed on the campus because the campus is very close to the city and there would be no room for them. Houses aren't allowed on MANY MANY MANY MANY campuses in this state, but it doesn't mean they don't exist...it means they are off campus.

He's not doing this for "status" or "a basement to throw parties" but to have an alternative to renting houses and getting screwed up the butt by the landlords who so like to do so to college students around here.

TSteven · #15 10-30-2006, 04:04 PM

Quote:

Originally Posted by RU OX Alum

I would form an Alumni Corp. to own the house that rents to undergrads, don't buy the house yourself, that $30K is yours, keep it that way, maybe donate 10-15 and let your brothers pay the rest

Co-sign. Form a Housing Corporation. You should check with your HQ about setting one up. Hopefully they will be able to help you with setting one up.

Once the Housing Corporation is in place, you could do a challenge grant (or what ever they are called) where you match dollar for dollar - up to 30K if you want - money raised by the chapter and alumni.