Is it worth hiring a Project Manager for a fix and flip?

[Janetta C.]

Hey Guys!

I'm ready to enter the world of investing and met with a contractor today who offered to be the project manager for my first fix and flip. His fees include an initial 10K project manager fee then 10% fee after selling of the flip. As the project manager he would secure all permits and inspections, hire the crew for rehab and manage them, stage the home for listing, and can guarantee completion within 4 months (120 days or less). If he does not finish before to the agreed upon date he would pay $1,000 a week for every week the project was extended. I thought this was a bit expensive but considering my background is in healthcare and I'm new to investing I thought this arrangement could be a good deal. We discussed using a hard money lender for financing and thus the 120 days for completion timeline. I'll be investing in the Richmond, Virginia market. Any thoughts on this arrangement would be greatly appreciated.

Thanks!

Moe

[Taylor L.]

Have you talked with Pete DeWorken (the Fixer Upper Coach)? He might be able to help you out here, at least to give a second opinion on rehab numbers. While you're at it I would also get a thorough debriefing from your friend on how their project went and things they would do differently.