Of course, you should do your own inspection first to get a sense of the property as a potential investment. This is a good course to follow since some problems may be extremely obvious (sagging ceiling, water damage, etc.) so you'll know right away that the property is not worth your time and money. In that case, you don't need the expense of a professional inspector.

So, why hire a professional at all? Because they're experts at finding hidden defects that can cost a fortune to repair, defects like bad wiring, defective water pipes, dry rot, mold, rotting roofs, termites, etc! Unless you have experience at the inspection process, it's likely that you'll miss these defects, and devious owners can be quite good at covering them up.

So, it's always, always necessary to conduct a thorough physical inspection of any property you're considering or to have an inspection done for you. If a property inspector does find problems, you can require that the seller correct those problems, reduce the price, or you can walk away from the deal before any damage is done to your finances.

Many states protect your investment by requiring that a seller provide a disclosure statement. In general, sellers are responsible for disclosing only information within their personal knowledge. However, some states do define certain problems that the seller must take responsibility to search for, whether or not they see any indications of the problem. Be sure to check with your state government to find out if this is the case.

If you do live in such a state and the seller willfully avoids mentioning the defect, you can take him or her to court for compensation. Finally, if an owner attempts to limit your access to or inspection of a property, walk away from the deal! He or she is likely trying to hide problems.

Always use the services of a licensed building instructor. Non-licensed inspectors can be incompetent or outright fakes who take your money and do nothing. I'd recommend you interview a minimum of two or three inspectors before choosing one. Make sure they're full-time professionals conducting a minimum of 50 to a 100 inspections a year (depending on the area).

Also, request copies of recent written inspection reports from inspectors. If they're reluctant to provide them, cross them off your list immediately! Professionals always want to show you samples of their work. After all, it brings them more business.

In addition, request a minimum of three references from inspectors. These references should be from customers who've used the inspector's services within the last six months to a year. Once you have the references, contact the customers to get their opinions on the inspector's work and behavior. Then, after you've made a selection, accompany the inspector on the first tour of the property you've targeted. This not only allows you to see how this individual works, but you'll also have the opportunity to learn the specifics of inspection.

I'd recommend that you select an inspector who's a member of The American Society of Home Inspectors (http://www.ashi.org/) or the National Association of Home Inspectors http://www.nahi.org/.

Members of these associations adhere to a code of ethics, plus they're prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They're also forbidden from using their inspection business as a way to find customers for a handyman service that they "happen" to own.

You may want to go on the Internet and use ASHI's "Find a Home Inspector" link to identify potential candidates in your locality. You'll find that home inspection rates vary by inspector, region and size of house. According to Bankrate.com, approximately 40% of buyers pay in the range of $200 to $250. However, as I said, rates vary, so it's good idea to survey your local inspectors to find out what the costs are in your area.

Obviously, you want a property that's structurally sound, so you or the building inspector should do a physical inspection to found out if there are any problems in that area. Below, I've provided you with a general list of questions to get you started. As you gain experience, you'll be able to add your own questions to the list.

• What property repairs are required? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• Which areas are unsafe or causing rapid and expensive damage? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• Are there priorities for repairs? If so, what are those priorities? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• Which repairs may cost a lot of money? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• What are the biggest risks of hidden damage? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• Are there inexpensive alternative repairs? ( ) Yes ( ) No If so, who's available to make these repairs at a reasonable cost? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________

• Are investigations into other repairs appropriate? ( ) Yes ( ) No _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ Of course, it'll be necessary for you or the professional inspector to get more specific and look closely at the following areas:

>> Electrical System Wiring, Service Panel, Devices, and Service Capacity

>> Energy Conservation/Safety Items

>> Exterior Walls, Siding, Trim

>> Floor, Wall, Ceiling, Roof Structures

>> Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks

>> Gutters, Downspouts

>> Heating & Cooling Systems

>> Insulation & Ventilation

>> Interior Floors, Walls, Ceilings

>> Moisture Intrusion/Mold

>> Overall Structural Integrity

>> Plumbing Systems, (fixtures, supply lines, drains, water heating devices, etc.)

>> Property Drainage/Landscaping

>> Roof, Roof Shingles, Chimneys, Attic

>> Walks and Drives

>> Windows, Doors, Cabinets, Counters, etc.

As you gain experience in inspecting properties, you may want to conduct inspections without the help of a professional inspector. I don't recommend this. However, I've provided you with a list of clues to look for on the next page as well as several checklists following it to make sure you do a thorough and complete job. I highly recommend you use the clues list and the checklists on every inspection. After all, it's your money you're putting on the line, and you want to make a profit-not incur a loss!

In the next chapter, we'll look at the all-important step of estimating property value.

Want to find FREE instant access for 30 days to this secret list of motivated sellers, deep-discount wholesale deals, pre-preforeclosure, bankruptcy bargain-priced properties, wholesale properties and neighborhoods the easiest way possible? Go to www.DoDeals.com