Of the investors that flip houses, how many of you would hire a PM to manage the renovation of your property? What services would you want from the PM, i.e. SOW development, initial estimate, hire contractor, etc?
How many houses do you flip or have you flipped? Unless you are doing more than one at a time or have many lined up you may be better off giving the GC more money and more responsibility. A PM is going to want a % of the job cost so give a smaller % to the GC and let him know you will work with him in the beginning and maybe increase his % over time as he takes on more responsibility. For a SFH I'm not sure there would be enough profit and work to justify the PM but running three at a time may. The GC will make his profit and overhead regardless but if he's coordinating the electrician and plumber etc. as well he can make a few more bucks. He's on the job anyways most likely.
I haven't flipped any properties. My education and experience are in engineering and construction project management. I'm trying to figure out if investors would buy into a service to manage their flips from start to finish. This would allow them time to focus on other things in their business. I would be their eyes and ears during the renovation to ensure that it is finished on time and within budget.
Hi Dawn, I agree with @Rob Beland as to the utility of a project manager. It really depends on experience, volume, availability, and deal margin. We just started a project management service here in San Antonio, and I see it 3 ways: 1) go with a GOOD general contractor, and agree (on paper) to terms that protect you and give you legal recourse; 2) coordinate and verify all the subs yourself, and keep a close eye on your project (same same with the terms above), or, if you're too busy to check your project daily or at least every other day, then 3) hire a project manager to handle the subs and keep an eye on your project on a daily basis. We got into this business because of the challenges we faced in our own rehabs and which we later realized were common with so many others. If you'd like to touch base feel free to PM me and I'd be glad to share some of what we ran into so maybe you can avoid some of the same issues.
LOL @Dawn Ramsey nevermind, I somehow scrolled right past your last post. If you think there's a market for it, I apparently do too :-P
@Chad Clanton great minds think alike!
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