Chris Bernhardt Posted April 7, 2007 Report Share Posted April 7, 2007 Got a call from a long time investor client who wants to buy a 190 unit apartment complex in Wichita Kansas. He wants an inspection he thinks but hell wouldn't that be a friggin ton of money? What advice do you give for such large complexes? Inspect them all? Ramdomly sample a few buildings? The buildings were built in 1974. Any recommendations for an inspector out in Wichita? Chris, Oregon Quote Link to comment Share on other sites More sharing options...
Jim Katen Posted April 7, 2007 Report Share Posted April 7, 2007 Got a call from a long time investor client who wants to buy a 190 unit apartment complex in Wichita Kansas. He wants an inspection he thinks but hell wouldn't that be a friggin ton of money? Not necessarily. I've done some of those and I didn't make a ton of money anyway. . .What advice do you give for such large complexes? Inspect them all? Ramdomly sample a few buildings? The buildings were built in 1974. Any recommendations for an inspector out in Wichita? I ask the buyer what he wants. I can do every unit or only a sample. Most investors know exactly what they want me to do. If they don't, I'd suggest that I inspect all of the exteriors & common areas as well as a representative sample of the units. I instruct the property manager to notify every resident of the inspection, then I choose the representative units for inspection after I'm on site. I try to get at least one in every building and an even spread of upper & lower units. The important thing to remember on and inspection like this is "trends." You're looking for problems that are common to lots of units. I don't know any inspectors in Wichita. - Jim in Oregon Quote Link to comment Share on other sites More sharing options...
Chris Bernhardt Posted April 7, 2007 Author Report Share Posted April 7, 2007 Has anyone worked a deal like this where they paid for you to fly out there and perform the inspection? Would you charge by the unit? Hour? Day? The problem is these days I love my wife and kids too much and hate to be away from them. When I was younger and doing the engineering gig I use to fly all around the country. That was fun then but I couldn't care less now. I figure an inspection like that would take about 3 days even if you were just random sampling a few per building. Chris, Oregon Quote Link to comment Share on other sites More sharing options...
hausdok Posted April 7, 2007 Report Share Posted April 7, 2007 Hi, When I do something like that I charge a flat shell fee plus my hourly rate for everything inside the shell and I won't do less than 25% of the rooms. The customer must arrange for and pay transportation and lodging. Like Jim, I'd randomly choose the units after I got on-site and given the number of units, I'd probably hire a local inspector to assist me by going ahead of me, noting the condition of the interiors and taking off access covers to speed things up. The other inspector's responsibilities would be strictly defined and limited to, essentially gofer status, with me inspecting the critical stuff where my liability would be the greatest, and I'd work out a flat per-day rate with the other inspector. My plan would be to return home having made, per day, the same as I'd make on an average day here, so that I wouldn't have lost money by turning down work here in order to fly out there. It's a commercial inspection. You aren't covered under your normal E & O insurance policy, if you have one, so you'd need to call your insurance provider and add a rider for that job and figure the cost of that rider into the fee. You should specify an up-front deposit that will at least cover your expenses, including the insurance rider, the fee that you and the other inspector agree upon, your airport parking/shuttle fees and cost of meals. I wouldn't even get in my car unless/until I'd confirmed the deposit with my bank. You never know. If it turned out to be a POS investment and takes a long time to do, he might balk at the final bill. At least that way you're expenses are paid and the amount you're going after him for can be done in small claims court and won't require you to hire a bloodsuc..uh, lawyer. MOFWIW ONE TEAM - ONE FIGHT!!! Mike Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.