Seeking Advice On A New Client Who Wants to Work With My Company

[Patrick Lee]

Hello,

So I recently was given an opportunity by an associate of mines who referred a client to me that needs a "holding-hands" sort of speak professional to help them do fix and flips on their portfolio investments.

I will be speaking with them later today around 2:30pm EST. As an experienced contractor of three years and having a college background in Porject Management.I am ready to work with this potential client. I need advice on what I can charge and if its a reasonable offer. Keep in mind this investor lives in Texas and I am from NYC, meanwhile their properties are in PA. My target market and only 1hr and 55mins away.

What I will be offering to this potential client is a 6 month coverage at a rate of $5000 with a "boots on the ground" at $250 per visit each month to check on the progress of the property and project .If the potential client can not pay in full, I will offer an installment payment plan with a down payment of $1750 or one month plus 3 visits. Then the remaining balance of $3250 can be paid out over the remaining five months of coverage at $650/Mo.

My plan is to pitch this offer to my potential client with 2 months free of coverage and 2 free monthly visits included in our contract agreement, saving them an estimated $3000 or more in additional expenses. I found out through my own research that low scale as a project manager the fee or rates can range $8000 to $10000 and upscale as far as $20000 plus 10% of the profit. 

I think this gives me a chance to open up the consultant side of my own business while exercising the use of my skills and knowledge as a project manager. Seeking feedback. Thanks in advance. What terms can I add or change and if you was the potential client, could this be a reasonable offer knowing I dont have prior clients for this kind of work and just by going off my college and previous contractor experience and credentials. Also keep in mind I do have my articles of organization and my operating agreement for my LLC.

[Stuart Udis]

@Patrick Lee What stands out to me is the fact someone who lives in Texas wants to renovate homes in PA and will be relying on a project manager/mentor who resides in NY 2 hours away. The fact you have an LLC is entirely irrelevant and adds nothing of value. Are either you or the client licensed contractors with the ability to obtain permits in the property municipality? If not, who will be pulling the building permit? Furthermore, there seems to be quite a bit of liability having a construction project with no daily oversight. This has a premises liability lawsuit written all over it. If you want to mentor this investor, that's fine, but I don't see how you can effectively serve as a project manager.