I Made A Mistake … I Admit It … The Average Mortgage Inspection Pays Less Than $3
I have been saying that the average mortgage inspection pays about $3 and yields a profit of about $1.50. It is pointed out to me daily that some mortgage inspectors are doing the work and are not being paid. I have not included this no-pay fact in my calculations. I know this is happening, but I don’t know the whole extent of it … although it is significant.
I have to now consider the whole set of mortgage inspectors, which includes those being paid and those not being paid, when I determine the average pay for mortgage inspections. If you take the whole set, you have a set that makes $3 for a mortgage inspection and another set that is not paid and makes ZERO for a mortgage. The inspections that are not paid reduces the average for all mortgage inspections to less than $3 and the profit to less than $1.50.
In the real world … the whole world … the profit on a $3 mortgage inspections is less than $1.50.
The mortgage segment is the home of 99% of the fraud in the industry. You could perform 1,000 mortgage inspections and make zero profit and be stuck with a lot of expenses.