Am I paying my project manager too much?

[Adam Craig]

Am I paying my project manager too much? 

I feel like I am paying him fairly but my family and friends cant believe I am paying a handyman about 75K a year or $1500/week - (PS we are in Cleveland market so 75K is a good living for this type of work)

In 6 years I have gone through more then 50 bum handymen/contractors to find the 5-7 I use now. Of all those contractors I only met one that I trusted enough to become my project manager and I knew he wanted more responsibility. 

Now Instead of running around getting supplies/managing and paying guys like a crazy person - I am now at home working on my other business or spending more time with my family. With 2-4 rehabs going on at any given time this was a long time coming.

Here is what he brings to the table that is beyond project management...

• He doesn't just manage - he tells his 2 helpers what needs done then he goes to work doing tile or whatever else needs done.
• He works about 50 hours a week and most Saturdays - so do his 2 helpers - he is not the type to slow down or cut out early because he is salary.
• He has 2 guys working with him and he has extended their cheap $15/hour rate to me instead of bidding jobs and making a lot more. One guy does all the painting and misc stuff - he is a young kid so he can move fast. The other guy does all the electrical/plumbing - he is an old timer and moves slow but where can you find plumbing/electrical at 15/hour.

The numbers tell it all - my rehab numbers are down since I made this move. I used to pay a "cheap" painting crew about $2200 to paint the exterior of a home. Now it takes my $15/hour guy about 5 days to do so I am closer the $800. I used to have what i thought was a cheap plumber - but the amount I am spending on plumbing now is laughably low.

So I know all the evidence says its well worth it but I would love to hear what others are paying some of their full time guys.

[Mark Taliercio]

I agree with the above.

In my experience, having someone that you can trust is invaluable. To pay him what I see as a fair salary and give him autonomy of the work, you are telling him that he can trust you, and in return based on your results you can trust him. I would  take the opinion of family and friends with a grain of salt - unless they are well versed in your business model and cost of labor, they are giving opinions without all of the facts. Plenty of people will say "That is way too expensive!", but when you ask them to provide names of other people who can be cheaper (not even considering how reliable they are), they are silent.

If he is providing a service so that you have more time to make more money in other deals, it sounds like a definite win-win