Underground oil tank

[David H.]

Hello BP 

I have a question about underground oil tank. I want to make offer on a three family property that has an underground oil tank in New Jersey. All I know is that it the tank is there I don't know if it was filled or was being used. I have to replace heating with gas boilers. This is a buy and hold property. I will be purchasing the property using a hard money lender and refinancing with a portfolio lender. Do portfolio lenders have restrictions on underground oil tanks? Any information or insight on the topic would be helpful. Thank You 

[Aaron K.]

No sure about lending restrictions but underground tanks are a big headache.  They can contaminate the ground and depending on your states laws may need remediation etc.  It may also be tough to resell at some point in the future for this reason as well.