Do You Use A Project Manager On Your Flips?

[Sean Gribbons]

Hey BP people, how often do you use project managers for your flips? I'm not talking a general contractor I'm talking someone who is in charge of making sure things are getting done.

If you do use a project manager how much do you pay them? What is your criteria for finding a project manager?

[Emmanuel Balian]

Hey Sean, 

Regarding the frequency of using project managers for flips, I would suggest you use a project manager the first time to guide you during the process and, depending on the similarity of the scope of work of the next project, you could manage it yourself based on the previous work. This is considering that you would be 100% dedicated to this process. 

If you hired a PM because of lack of time, to simplify your headaches, and to represent you during planning and construction, you can let them know about your future plans that may require their help again so you can work on a favorable fee from the beginning. 

Regarding the rates, generally speaking, because a project is considered in terms of complexity and scope of work, you could expect to pay 5-10% of the associated cost, up to 20% if they include a general contractor.

Regarding the criteria for finding a PM, look for someone who has worked and managed similar projects. You can ask for references. The ideal candidate will be someone who can deal with different personalities because Project Managers must be able to deal with different contractors, vendors and municipalities, and must be able to overcome obstacles in order to get the job done.

During the construction, make sure you are getting updates in each stage of the work.

Hope this helps,

Emmanuel

[Sandra K Shirah]

I'm in the process of my first paid "project management" for an investor client.  I'm an experienced agent, and as Emmanuel stated, you definitely need to find someone that can deal with a multitude of personalities and someone that doesn't stress too easily. So far it's challenging, but I'm finding it an enjoyable new facet to my real estate experience, and I learn something new everyday.   

[Kevin Dang]

@Sean Gribbons It rrly depends on the size of the project if a pm is needed. In a continual basis, the total cost of the projects I run at the same time is $5 mil. PMs would have some engineering and construction management degree, work experience, and etc. For residential, I would look for someone who has been a superintendent for a number of years. What is more important is having a good gc to do quality work and man the job everyday. No point in having a pm there if the gc ain’t performing.

[Kevin Dang]

The gc would have a pm but they will be representing themselves.

[Ben Paras]

@Sean Gribbons Yes! I actually use a designer and PM for every flip project....fortunately she’s my wife ;)