I started my real estate career in 2017, and flipped 5 houses from 2017 to February 2020. After selling my last house in February 2020, I took a break from flipping due to the pandemic and wanting to work from home. Now that the pandemic is getting better, I am starting to think about getting back into flipping, and I do expect to get back into it in the next 2 to 3 months (as more people get vaccinated and I feel safer to go out into the real world and interact with people).
My first 5 houses that I flipped were a learning experience for me. Without a doubt, I was making mistakes, but I've learned from my mistakes, and I do feel that I am ready to run a very efficient flipping business right now. For my 5th house, I was only flipping one house at a time, so I did not need a project manager, but now, when I go back into flipping in the coming months, I will certainly want to hire a full time project manager as I am expecting to be flipping 5-10 houses at once now, and I expect that number to grow.
My question is - how much should I be paying a full time project manager to manage 5-10 houses (in California, LA County)? I also do not yet have a general contracting license for my company, so I want to hire a salaried project manager that will be able to pass the GC test for my company.
Any information that anybody would like to share would be greatly appreciated. TIA.
Starting salary should be around 60k. I would also structure an incentive with the Project Manager where if he/she were to take and pass the test for GC licensure, an automatic rais would be applied so long as they committed x number of years to you.
I know it sounds aggressive, however, if you find someone young and hungry this could be a great deal for both parties.
Have you also considered paying a PM based on a percentage of the overall project cost?
@Daniel Oren here is what I do. I have a GC for my projects. I pay him $5000 for each project (new construction - price may vary in your area). He gets $1000 when the permit is issued (his job to fill out the permit application and submit). He gets $2000 when we pass all our rough-in inspections. And he gets the final $2000 when we get the final C.O. He also collects bids from his vendors (I have a few of my own vendors and he doesn't deal with them) and oversees the work. Sometimes he even does some of the physical work. I pay those vendor bills directly to him and I'm sure he is getting a cut of those bids; but that's okay - I don't have the contacts and he does. Works for me.