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Called to do HUD Inspection
2

Called to do HUD Inspection

Called to do HUD Inspection

(OP)
We have been getting calls to do HUD Inspections of modular homes and we have been turning them down. I downloaded the 400 page HUD manual and it seems like quite a bit of material to digest and a long checklist is required to be completed before writing a short report.

We are a structural engineering consulting firm.  We are thinking about starting to do these inspections. However, we are worried about the learning curve. How long did it take you to get up to speed?  What is the going rate (range) for these inspections? Can you make a profit on these or do you go in the hole everytime?

RE: Called to do HUD Inspection

Are you talking about modular homes or manufactured homes (often called mobile homes or trailers).

RE: Called to do HUD Inspection

I think it can be good work, after you have done a few.  Most of the time, these houses do NOT meet the HUD standards, which unfortunately means the prospective homebuyer cannot get their HUD loan.

You cannot get a very big fee for one of these inspections--$300 to $500, I am thinking.

DaveAtkins

RE: Called to do HUD Inspection

(OP)
Archeng,
Yes, mobile homes/manufactured housing. "Trailer homes" is not politically correct. ;)

Dave,
If they can't get the loan, how do you get paid. Do you ask for the money up front before the inspection? Tying it to a closing cost fee might mean that you don't get paid.

RE: Called to do HUD Inspection

You are about correct on the pricing, except that I charge an extra fee to re-inspect if the home fails. (All flat fees, no mileage etc)

Yes there is a good learning curve, but once you are through this it is not too bad. Think of it like a mortgage survey, you need to do a lot to work them efficiently. I didn’t make money on them until I had the first 5-6 under my belt.

Few of the homes I find match the foundation types in the HUD manual.

For a "Good" installation, it typically takes 5-6 hours to make all the contacts, write contracts, visit the home, write the report, record the billings.  I ask for payment upfront for these, and for all other inspections related to a real-estate transaction.

FYI, the most recent one, I waited on site for an extra hour while the owner ran to the hardware store.  There were three tags under the unit, with the words "Place Post/Column" here, but no post......

The worst one, I spent 12 hours of work on. I felt sorry for the little old lady.  She had a "Foundation Plan" from the original installation. The plan was prepared by an unlicensed "engineer". At the end of the day, and using a very, very sharp pencil, I was able to give her the certification for the loan. (With disclaimers) But I also told her that in a bad storm, I would rather see her go to her garage, as it was built better.

Bottom line, there is money here, but it is not easy money. Plus there is a real need for this work to be done.

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