How to find local project managers for flips & how to pay them?

Question

My partner and I are both located in Canada and have recently taken some extensive training programs on flipping in the United States. In order to get started, we would be looking for for local project managers to join up with.

We would be bringing in the deal (mostly from wholesalers), developing the scope of work, financing and selling it. The role of the local project manager would be to check out local deals prior to purchase, locate and coordinate subtrades, check up on the contractors, and look in on the property regularly and when needed.

Because wholesale deals go very quickly we would need someone that can have a look at a property very quickly, within a few hours same day. So here are my questions:

- how would we best find such a local project manager?

- what is proper compensation for such services (a lump sum / hourly / a portion of the profits - and if so how much?)

Thank you in advance for your input.

- what is proper compensation for such services (a lump sum / hourly / a portion of the profits - and if so how much?)Thank you in advance for your input.

Account Closed · Answer

Here's my advice on remote project managers. Find two. Use a good, licensed general contractor to oversee construction. Then hire a separate local person--could be your Realtor, home inspector, different contractor--and make them sign off on every item before releasing payment. Yes, I said hire them. You want financial accountability for your inspector. And, of course, you need a detailed, line-item contract to start with, and a detailed line-item draw schedule. Every singe change to the overall work list or per draw work list must be in writing and acknowledged by all three--investor, contractor, inspector. If your contractor can't handle this, it's a pretty good sign that it's not a contractor you want to use.

Sounds obvious, I know, but I have helped many out of town investors out of failing projects and none of them had these controls in place.

Suzanne P. · Answer

Thank you @Manolo D., Josh C. for your comments. I really appreciate everyone's input. Mia, please send me a PM with your ideas.

Will Barnard · Answer

This is an old thread with last activity 5 years ago. That said, even 5 years ago, $20 an hour seems cheap by CA standards for a real PM with experience; Unlicensed or not.

This is a good question though and one that has been asked several times here on BP. Finding good project managers is similar to finding good contractors. You have to sift through a bunch of garbage to find the jewels.

Suzanne P. · Answer

Thank you @Manolo D. and @Matt Stewart for your comments. [Solicitation Removed by Moderators]

Grigory Pekarsky · Answer

Answer: Understandably, there is a lack of consistency and standards with project-management professionals and the prices they charge. Experts often depend on their years of experience, number of hours available each week or month, and how much they value their time to set appropriate rates for themselves. As such, freelancers might not even list rates upfront - taking into account recognition as an expert in productivity gains them trust with potential clients - but may instead work out a deal after categorizing your objectives and needs.

Suzanne P. · Answer

Hi Account Closed, thank you for your detailed reply, I really appreciate it. The financial accountability and control aspect is so crucial. That's where a lot of deals suffer. Great input!

Manolo D. · Answer

Josh C. Who says anything about a GC? It's a project manager no license, no insurance, no liability, all he does is push paperwork and render reports. I'm licensed and insured, I don't know if I am good, but I don't get up in the morning and go to work for less than 500/day, that's even low to me in some of the jobs.

Matt Stewart · Answer

I've been contacted by a few out of state investors who are jumping into the Columbus area to be their "boots on the ground" guy.  I'm not a GC or licensed, but I've got 10 years of experience, many flips in the area, and the resources that come with it.  Obviously compensation depends upon how much time I'm going to spend on the project.  I'll walk through a property, do a quick inspection, and give an assessment of a rehab for $50, but if I'm expected to manage that entire rehab from demo to dusting I'm looking for a percentage of the project profit.  Bottom line, it all comes down to how many hours I'm putting in.

How to find local project managers for flips & how to pay them?

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