Buying a Frat House as an Investment

[Tony Freeman]

Hello everyone! 

I am a real estate agent that currently has a a client looking into buying a Fraternity house as an investment and I wanted to know some of the important things one should consider before going that route. The biggest concern of course is the liability that’s attached with a Frat house. We all know that the connotation of a Frat house is things could potentially be broken and the crazy parties and such. So in what ways would the investor be able to protect himself from such liabilities? If things are damaged or destroyed, is it automatically on the owner financially or would they put something in the contract that if something is damaged or destroyed, it would be tacked on to the Frat houses dues(essentially the owner getting their money back for whatever damages he/she had to pay for)?