All Forum Posts by: Troy DeLong
Troy DeLong has started 10 posts and replied 132 times.
Post: Project Manager Compensation?
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
All great feedback. Thank you!
Post: Project Manager Compensation?
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
Quote from @Autumn Cain:
Hi Troy!
I'm giving my 2 cents here as a former Cooperate manufacturing Project manager gone Property Manager:
I think the pay structure you have currently is an awesome start! With the RE game commission is a great way to ensure you get value in and value out on a project. However, as an agent and investor, we understand an accept that our payout comes with time- however for a project manager realistically looking for a 1099, being paid at the time of work is key to making sure you have the right person on your team.
Is there realistically a way that you can create your projections of net profit on a project (in a scale format from X$ to Y$) and find a happy medium in there of expected net profit, and carve out your PM budget there? You have a risk definitely, but paying your PM on a more consistent basis may help you get a motivated professional on your team who is there to stay! Maybe go for a commission based bonus structure to take it to the next level!
On top of ironing out pay structure, I would 1000% create clear documentation of what expectations you have for your project, and how and when you expect your PM to meet them to ensure that you receive the value and service that you are paying for. The documentation creates both a blueprint and document of accountability.
As a Project Manager, when diving into a new initiative, I'd sit down with a project charter with our VP, and ask questions to gain a full understanding of the expectations of a project. This may be a no brainer- but think of exactly how, when, and why you want this project done so you can clearly provide that blueprint to your PM.
Is your top priority here the timeline? The payout? The budget? Or creating the most unique Fix and Flip ever seen to become tiktoc famous? This could greatly change project approach for your PM. The less confusion, the more efficiency!
Hope this helps and Best of Luck!!
Thank you very much for the insight Autumn! Those are some great questions to ask and the clear communication up front is definitely key.
Post: Project Manager Compensation?
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
For any of you medium to high volume flippers, I'm curious as to how you compensate your Project Managers. Our team is shooting for 24 Flips this year (and on-schedule so far) and we're struggling with our Project Manager. The original plan was to be 100% commission, based on metrics like net profit after the flip is sold, size ($) of the remodel, finishing on-time and under-budget, etc.
Meeting our average profit per flip and doing 24 / year, our PM has the potential to make around $72,000 / year. This is 1099 and the schedule is SUPER flexible. Pros and Cons of this compensation plan are...
* We could lose money on a project, or make twice our planned profit.
* The amount of hours spent managing could vary, based on size of remodel and number of contractors involved (10 hours or 80 hours, paid the same).
* The house could sit on-market a while, meaning the PM doesn't take a commission for 6-9 months on that project.
I'm hoping to get some feedback. What is everyone else doing for Project Management? Compensation, full vs. part time PM's, number of PM's, duties & responsibilities, etc. Thanks in advance!
- Troy
Post: Do we need loan insurance for Private Money
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
What do you / they mean 'Loan insurance'? Like PMI (Private Mortgage Insurance) you get with a traditional loan? Are they talking about a Lender's Policy for Title? I have never heard of a private money lender or hard money lender requiring "Loan Insurance".
Post: Rental License Fee's in Lansing, MI
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
@Julie Vose I sure do. I'f you'd like to send me an email, I'd be more than happy to send the City of Lansing info your way.
TroyDeLong.Biz ('at' sign) gmail.com
Post: Multifamily Purchase on Charlotte Michigan
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
@Roque Miranda Charlotte may be small but has a great rental population. Charlotte is a County Seat (Eaton County), so it'll always have a stable population.
I'm a local and would be more than happy to assist with your multi-family search.
- Troy
Post: Tenant placement service only, on East Lansing, Michigan?
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
@Tzvi Keisar Reach out to Tyler Horton with Edgerow Property Management. They offer this exact service.
Tyler Horton
(517) 331-3520
Post: Soon to be real estate salesperson need tips/tricks
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
For help passing the exam, I HIGHLY recommend listening to the 'Pass the Real Estate Exam with PrepAgent' podcast. He does a fantastic job of giving you tips and tricks to remember all of the vocabulary you'll need to memorize.
For help succeeding in the business...
1) Be an EXPERT when it comes to real estate knowledge. Take every con-ed class you can and sit in on every sales meeting your brokerage holds.
2) Be available whenever your client is available. If your client is only available to see a house on Saturday at 8am, you better be waiting at the house for them at 7:55am.
3) Do what you say you're gonna do. Clients will remember every little thing you say.
4) Be professional. Dress nice, don't swear and have a nice business card.
5) Network. Go to the local meetups for business professionals. Go to the luncheon that the local lender invited everyone to. Don't be embarrassed to leave your business card with your hair stylist.
Now, in a couple of years when you're established and have a good book of business, you could loosen up on the schedule and networking part, but these are good starting steps that helped me get to where I am.
Best of luck!
Post: How Much Do You Spend On Closing Gifts
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
@Calvin Hayward It totally depends on the client. How good were they to work with? Are they repeat clients? Have they referred you a bunch? What was the commission on the sale?
I've spent anywhere from $30 to $250 and it all depended on the things listed above. Take some time to make it personal though!
I helped a young kid purchase a 4-unit he was going to house hack and manage, so I got him a nice Dewalt drill set.
I helped a lady purchase her first home, and every house we saw that needed some work she would respond, "Mike can fix that" (her boyfriend). So, I had a local shop make her several home decor items, and one of them was a nice mug that read, "Mike can fix that". I know, cheesy, BUT personal.
Hope this helps.
Post: Windows in property
- Real Estate Agent
- Lansing, MI
- Posts 138
- Votes 77
In the grand scheme of things, yes, you should eventually replace the windows so
1) They operate properly.
2) It doesn't turn away potential tenants or cause maintenance hassles when a new one moves in.
3) Tenants have proper egress in case of an emergency (like fire).
Now, windows are expensive, so you'll have to decide how much you're willing to spend, based on how much income the property is bringing in. Windows are also a nice value-add to the property once it comes time to sell.
- Troy