Rehab Manager Commission/Salary

[John Vitta]

I have a Rehab Manager that will be managing the rehabs of my flips. What is a typical and fair commission to manage rehabs? He would be responsible for hiring contractors, managing the project and getting the work done on budget and on time. Any incite on this will be much appreciated. Thanks

[J Scott]

I would work backwards.  Pick a reasonable total salary that you're shooting for, and then provide a combination of commission (based on profits) and salary that will hit that total salary.

From there it's just a negotiation...

For reference, I used to pay my project manager 15% of the profits, plus additional salary (that was dependent on market and total salary I was trying to hit).  But, that 15% made sense given my volume and profit margins at the time.