TOPIC: Multi Inspector Firms

I am in the early stages of an opportunity in Central Florida for part ownership in a multi-inspector firm. The firm will have two inspectors and one other owner. The deal is part ownership now and full ownership in about 1 1/2 years. I have talked to a few people around here and I get literally a 50/50 opinion about multi-insp. firms around here.

If anyone would share experience either as an owner, or inspector in a multi, I would appreciate it. I have some time to make a decision. I would like to know about pay scales, insurance, ect. also. The firm now carries E/O and Liab. for all inspectors. Has anyone done anything different?

There is nothing etched in stone with this, the firms numbers are good. I found out about this from my in-laws who live in FL.

Thanks

I've seen multiple inspector firms where each inspector has to get their own E&O. I can't really see a 2 inspector company to be making enough money to have two owners though. That doesn't fly right with me, especially when one of the owners isn't one of the inspectors. Many of our guys are doing great in Florida, but good enough to have an owner? Plus you're in New Jersey so it's not like you can keep a close eye on things.

These are all things I have to take into consideration. Again, nothing is etched in stone and no deal has  been made. Only a deal has been presented. Whenever a deal comes my way, I have to think about what's in it for me because the presenter has already looked at it from their perspective. In this deal I have my in-laws investing in it, I think because they want my family to spend some time in FL.

I just need to weigh it all out.

Are you going to be a silent partner? 

I heard one of the multi inspector firms around here split pay 3 ways.  1/3 to the inspectors, 1/3 to the business, and 1/3 to the business for marketing.  Also they use 2 inspectors per inspection and keep the inspection time to two hours for a total of 4 man hours per inspection.  Average inspection price for them is ~ $300.

You could also look to real estate offices for how they set up their pay structure.  Try to find a structure that already is in use and works.  Don't try to invent the wheel again.  You will loose!!!

That would be $25 an hour to the inspector!

OUCH!