Building an Entourage of Experts – Part 8- Choosing a Property Inspector
If you missed the previous article – Creating your Entourage of Experts – Part 7 – Choosing a General Contractor
As a full-time Canadian real estate investor, we will be involved in many deals with no intention to close. We are able to make a lot of money on these deals. There will ultimately be deals that we will purchase ourselves for the sake of flipping, and other deals that we utilize as long-term holds.
The properties we intend to hold long term need to be in the best physical shape possible so we need to know what repairs are needed from the outset. Therefore we will need to use a property inspector. Property inspectors are crucial to point out the deficiencies in the property.
When interviewing a property inspector, we need to understand what kind of experience they have had. Historically, to become a property inspector, all you needed was a business card and a telephone. Those people are still out there, although the industry is slowly being standardized.
We need to find a property inspector that has taken courses and has become a certified property inspector.
We also need to know that they are fully insured. This requirement is for your protection, in case they make an incorrect assumption on any particular area of the property. For example, if they say the roof is good for another five years and it caves in the day after you buy it, they are insured for an improper assessment.
Can the property inspector give you the failure time on each particular item such as roofs, furnaces, air conditioning, windows, and chimneys, as well as most appliances.
Will you go where no other will go?
It is important that you ask the property inspector if they will physically go on the roof and inspect it. This includes both summer and winter. If they say that they won’t, then move on to another person. It is paramount that you understand the shape and failure time of the roof, for it is one of your biggest expenses. Will they also check out crawl spaces etc?
Are they familiar with all types of heating, cooling, plumbing?
Are they able to test for mold as a result of flooding or grow-op operations?
Ask them if they will be giving you a detailed report once complete. You can use this detailed report as a strategy to potentially get a renovation credit if necessary.
It is always an advantage if this person is an investor as well and owns their own investment properties. This creates synergy in the relationship.
All the best with your building of your entourage of experts!
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