Home Inspector and Investor

[Thomas Harr]

Hi BP readers,

My name is Tom Harr and I live in Columbus, OH. I wanted to write a quick post about my experience owning a home inspection company and investing in real estate while doing so!

Clearing the air:

Home inspectors are not out to kill your deal. I have heard that stigma many, many times. We are a hired, third party, unbiased overview of the home/building. We are to give the buyer a fully comprehensive report about everything in the home (most people focus on the bad). From listening to about 250 or so podcasts, most investors see home inspectors as the bad guy and someone who is out to get them! While where I am from, there are many poor inspectors, but just as you would a tenant, you should vet who you hire before you do so. 

With that being said, we have a family owned company (me and my dad) and have been in the industry for about 20 years. We have inspected many, many homes for investors and there are good reasons to do an inspection clause. Why?

1. You get an unbiased opinion.

2. You can use that information to go back in your request for remedy and potentially get things fixed. 

3. Many times people will let emotion cloud their judgement. We let you know the good, bad, and ugly of the home. Cut and dry.

4. They are an integral part of a team (until you have looked and worked on hundreds of homes). Once we work with an investor more than 1 or 2 times, they will definitely get our discount because we know they will bring plenty of business. Win-Win. 

Being an investor as well, I understand that it is all about the money, whether it is the repair budget, or cash flow spreadsheet. When I go to look at a home for my personal portfolio, I can easily spot big ticket items that many beginner/intermediate investors may not. For example, asbestos on ductwork, knob and tube wiring, and foundation issues. THESE ISSUES, IF LOOKED OVER WILL KILL YOUR BUDGET.

Am I trying to brag that I can spot these issues, no. Will it help me bargain with off market deals that come across my desk? Absolutely. Many of these distressed owners do not know what these issues look like and with that knowledge you can make a decent deal a great one. 

We work with these lenders such as lima one and large banks and I get to see hundreds of thousands of SOW worksheets and see what areas of town have crazy renovations going on, which is awesome. Tip for those of you using lenders that use third party inspectors: create a relationship with that inspector, send him exactly what you're looking for in your draw, and we will make it a priority to help you out. It sounds pretty basic, but we have people calling us all the time wondering why they didn't get their $20k for things that were not complete. 

I would love to answer any questions as far as home inspections go or how to prepare for them. Just give me a shout.

Pro tip - If you are a flipper or a person looking to sell your place..... Get a pre-listing inspection. It will save you thousands of dollars and potential ruined deals. We will tell you exactly what a buyer's inspector will do, but you will have the knowledge before hand and can take care of it. 

If you want to check out my site I will drop it down below! Thanks to all who take the time to read.

Tom Harr