Project manager staff

[Douglas Peterson]

To All,
For those that have hired a project manager, how have you structured the position?
What is the total salary range for this position?
Have you done salary or salary plus commission or all commission?
What kind of volume were you doing when you got to the point to hire a project manager?
What have you done about health insurance?
Any other critical issues you think need to be addressed in structuring such a position?

Thanks,
Doug Peterson

[J Scott]

I hired a PM early on, and basically, his responsibilities are as follows:

- Look at houses that I might be interested in
- Put together basic rehab estimates (something I can start with when putting together a budget)
- Get bids and negotiate with contractors
- Manage contractors on a day-to-day basis
- Manage schedule, budget and quality for all work done
- Put together material lists and order materials
- Be around for deliveries
- Get houses ready for showings
- Deal with inspectors/appraisers
- Deal with alarms when they go off
- Anything else that may come up on a day-to-day basis

Occasionally, if things are slow, I'll hire him out to other investors to manage their projects, consult for them, etc. When I do this, he and I split the profit.

He has a checkbook and credit cards for the company and is authorized to make any rehab decisions and any financial decisions up to a specific $$$ amount (over that, he needs to get approval from me).

He is paid a small monthly salary, plus receives a percentage of the profit on each project. This way, his interests are aligned with mine -- making the most money! If projects get done on schedule and on budget, we'll make more money and so will he. If projects overrun budget/schedule, we all lose out.

I don't provide health insurance, but my one PM has it through his wife's company.

In general, he has earned between $50-60K each year for the past four years doing the PM job, plus he makes extra money when I hire him out as an independent contractor to other investors (sometime a lot of extra money).