Using Project Managers/Need advice
Hey guys,
I am badly in need of some suggestions. Currently, my wife and I have purchased a place that is in bad shape for 84k. Our realtor is also our future project manager. She led us into the investment believing we should only spend between 40-50k on the rehab. After closing, her estimates is now at 100k for the rehab alone and her project management fee.
She wants 15% of total project (which I kind of want to see if this is reasonable?) for us being friends, she said this is already a friendship discount, since she normally charges 25-35% for other clients (which I don't think she even has other clients, because she started her own company and used foreign investment money to flip places and pay back the investment capital + interest)
Her current estimate of 100k is only her guesses, without really having anyone or any real contractor giving her a solid quote. However, this is not the part that is sketching me out, but she now wants a contract signed right away to use her as PM, with $5k of deposit down right now for her, THEN she'll start providing me quotes from her contractors, saying that it's not fair to her or her contractors without any promises on our end.
My thought is....... I would at least kind of need to know a number that your contractors will charge in order for me to determine if I want to use you or your contractors, so without any real scope of work done, I can't just sign a contract that needs me to take out $5000 of my budget.
What are your thoughts? Please let me know!