more thorough and they’re well versed on local building codes. The city inspectors in my area show up as a team that typically includes a plumber, an electrician, a heating and air conditioning specialist, a builder, and someone who specializes in zoning. Your house receives a thorough inspection and a complete write-up for about the same price you pay a private inspector. If the inspection uncovers problems, you can sign off on the recommendations, agreeing to make the necessary repairs after you take possession. However, not all towns and cities offer inspections, and some offer them only for new homes, so this option may not be available to you.
If a team of city inspectors isn’t an option, have your contractor do a walk-through. Having someone inspect the home who can personally make the fixes is best, assuming that the person is trustworthy — you don’t want a contractor who recommends upgrades merely to keep the work crew busy and jack up your costs. The goal of the inspector should be to recommend repairs that make the house marketable and not overlook any major/costly defects.
www.nachi.org. When you have a few leads, contact your candidates and ask them the following questions:
Are you certified, licensed, and insured? Certification and licensing ensure that the inspector has the basic qualifications for the job. Insurance covers any serious overlooked defects.
How long have you been a home inspector? Length of service is often, but not always, a good indication of experience and expertise.
How many homes have you inspected? “One or two” isn’t the answer you’re looking for. A busy home inspector is usually busy as a result of being good.
What did you do before becoming a home inspector? Someone who’s a retired carpenter or home builder is probably a better candidate than, say, a burned-out dance instructor.
Do you have references I can call? If the inspector has a good track record, people don’t hesitate to provide positive references.
Do you recommend remedies or simply identify problems? Look for an inspector who’s had experience in construction. The builder who constructed my home made an excellent home inspector and actually moved into this field full-time. His approach was to not only point out problems but also recommend repairs and renovations.
Also, never hire a family member or friend as a home inspector — even if qualified — because that person will become The Expert and tell you what you’re doing right and wrong, without fully understanding the project and what you’re trying to accomplish.
Calling In Your Rehab Team
When flipping a house, you can do as much of the fixing up as you’re qualified, comfortable, and willing to do. (See Chapter 14 for details on distinguishing between do-it-yourself projects and hire-a-pro projects.) For those hire-a-pro projects, hire a contractor or subcontractor:
A contractor (or general contractor) is the boss. This person manages the budget and workflow, hires subcontractors, coordinates the work from start to finish, and hands you the bill.
Subcontractors perform specific tasks, such as wiring, plumbing, and installing ductwork. When you hire a subcontractor to do a specific job, you’re acting as the contractor yourself.
Chapter 4
Securing the Funds to Fuel Your Flips
IN THIS CHAPTER
Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1.
— WARREN BUFFETT
Flipping houses is an expensive hobby. You need money — investment capital — to finance the purchase of a house, perform renovations, pay the utilities and taxes, sell the home, and cover your living expenses while you’re hard at work. The good news is that it doesn’t all have to be your money. You can borrow against the equity in your home, persuade family and friends to front you some money, find eager investors who are willing to finance your venture in exchange for a cut of the proceeds, and maybe even finance the purchase of the house through the seller.
If you’re thinking
