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Toan Hoang
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What is Fair Project Mgmt Fee on Rehab

Toan Hoang
Posted
What is a fair PM fee to manage project. Includes all coordination with subs, all material purchases, and timely completion of job. I am the investor but want to know what is reasonable for the PM. This is only project management work. Not any labor on the rehab. But i understand that this is a job in itself so i want to be fair. Does anyone have this arrangement? If so any ideas on structure?

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Michael Ablan
  • Real Estate Broker
  • Watertown, NY
1,098
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Michael Ablan
  • Real Estate Broker
  • Watertown, NY
Replied

@Toan Hoang  -  It sounds like you have great reasoning behind making this decision.  I was in the same exact position you were in, with a similar amount of properties.  Instead of hiring a GC, I took on a partner whose job was to take over that part of the world entirely.  It was a game changer (in a good way) for my business.

Just becareful getting into business with friends.  They tell you not to do it for a reason.  It's a relationship killer if both of your priorities are aligned exactly.  Especially if a project doesn't go right.

Good luck to you!  Sounds like it's worth a shot!

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