Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Thomas Elam

Thomas Elam has started 3 posts and replied 21 times.

Post: Undisclosed underground oil tank!

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Hey Joe,

 I do not know for sure that her tank is leaking. However 50 years ago steel was the material of choice for tanks. There is another house 1 street over that had the same issue. The only way to know for sure is to dig it up.

Tom Elam

Post: Undisclosed underground oil tank!

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

The view from inside our buried fuel tank looking out. You can see the sun shining through the holes. 

The fuel tank rolled on it's side and contaminated soil in the background. We have clay soil, the back hoe dug down 14 feet before the soil did not smell like fuel. The fuel stained the outside of the tank to about 1/2 way up the side of the tank so it appears to have sat in a fuel pool for awhile.

 We had the tank tested prior to buying this house and it passed. These photos were taken 18 months after we purchased the house. I spoke to the man who tested the tank. He told me the tank barely passed the leak test.  I guess that is like barely being pregnant? He did not have a reply to that. The seller paid for the test, a lawyer told me there is no way to prove when the tank started to leak.

 The tank was buried 20' from our well. There are a number of buried tanks in our development. I have seen another neighbor go through the same thing we did. It is hard to miss the smell of fuel oil coming from a big pile of dirt.  With so many tanks buried around us I think it is impossible to say exactly which tank would be the one that contaminated the ground water.

 One ex neighbor who is a Real Estate Agent asked me why we had a mound of dirt in our yard. I explained it to her. She had her house up for sale at that time. Her house has a buried fuel tank also. I told her that I would not buy another house with a tank buried in the yard. I told her that she has a leaking tank.  She just looked at me with a blank stare. She sold her house leaking tank and all.

 I agree that it is the real estate agent's responsibility to make it known that there is a buried tank on the property. They know about it and they write the listing. If they are withholding information then they should be held accountable. 

Post: Undisclosed underground oil tank!

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

The Maryland Department of the Environment regulates buried fuel tanks, Connecticut may have a similar government agency.  You may want to report the tank to them to find out about your local laws.

Post: Cool Rent Vs Buy Calculator from NYTimes

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Very cool.

Post: Undisclosed underground oil tank!

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Your fuel tank is leaking. The question is how much will it cost to clean it up. Search around on the internet. You will read about some real horror stories. You have an out with your contingence and you may have to use it.

In 2003 we bought our home in Maryland with a buried fuel tank.  The tank had been in the ground 40 years. We had the tested and the results came back good. In 2004 we had natural gas run to the house so we had the tank removed. Maryland gives you 1 year to remove a decommissioned tank. 

 There were hundreds of small holes in the bottom of the tank. Condensation that collects in the top of the tank drips down through the fuel to the bottom of the tank where it rusts through. We spent $3600.00 to have the tank and 40 tons of contaminated soil removed. I also spent a lot of time and energy getting the lawn reestablished.

  Check with Connecticut's Environmental Protection Agency. There may be laws addressing the removal of buried residential fuel tanks. Possibly you could use that as leverage to make the seller remove the tank and handle the clean up.

 I hope this helps you.

Post: This is my first time loaning money, how do I protect myself?

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Dev Horn I called my contact with my SDIRA and he will get back with me tomorrow. Thanks again for your help.

Jeff S I understand that traditionally it is an even split, I am willing to take less than that for my first deal. You are right cash is king and there are many people who would be willing to take less than Joe could potentially receive.

Post: This is my first time loaning money, how do I protect myself?

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

You are correct Jeff, this has evolved into a joint venture. Lets say I use $70,000 out my SDIRA. I get my initial investment plus 10% $70,000 +$7,000=$77,000 back at the sale. If the house sells for $100,000 Joe gets $23,000. Joe is doing the work, should he not be compensated this well?

Post: This is my first time loaning money, how do I protect myself?

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Dev Horn Thanks for that suggestion, I assumed that Joe would be paid as I would any other contractor. I'll look into it with my SDIRA provider.
Tom

Post: This is my first time loaning money, how do I protect myself?

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Ted Akers The plan is to finance the project in my LLC as you suggest in a joint venture. Joe will find the property, manage the rehab then market and get it sold. The LLC will get back all expenses plus 10%, Joe will receive the remainder of the money as his compensation. I do not want to get into leveraging. I believe if I can't pay with cash than I can't afford it. I have heard too many stories of someone getting over leveraged and loosing it all. Cash is king.

Post: This is my first time loaning money, how do I protect myself?

Thomas ElamPosted
  • Real Estate Investor
  • Kingsville, MD
  • Posts 21
  • Votes 1

Raymond B.

Thank you Ray