Do you find it better to have a project manager for your rehabs?

Question

I would like to hear the thoughts of investors on if they think using a project manager to lead and develop their projects is helpful. I notice some contractors dont like working with project managers. Is this because they dont want to answer to someone representing the investor?

Doug W. · Answer

I use a project manager and it has been great. He is responsible for all of the scheduling of work and being onsite each day. I call him the "adult babysitter". I now have three rehabs going on simultaneously and he covers all of them.I still manage the layout, design, and procuring of finish materials. I also manage a handful of sub contractors myself but that is only because they are friends of mine and I like hanging out with them. On a side note these subs handle hard & landscaping and fences and decks so they really aren't ever going to be in the way of the subs that my PM manages. The only issue I have is that when some subs see me onsite they sometimes ask me questions that I would prefer they ask the PM. It's not that I can't answer. It is because I don't want to confuse them with instructions that may not align with what the PM said. One sub likes to ask me questions and it quickly became clear that he was trying to do it to upsell me. I say this because he would ask/say "it would look better if we did it XYZ way" and I would respond in the affirmative. Hours or days later my PM would say to me "George said that you authorized this change and his price has now increased $X". So I finally had to tell George to refer all questions to my PM.So the big pluses for me is that I can do more rehabs and do them faster, I am not the one receiving calls/texts late at night or on the weekend from multiple subs, I don't have to be onsite as often or for as long, and I am generally freed up to find more houses to buy. I hope that helps.

Will Barnard · Answer

What is better for me or others may not necto scarily be better for you. That is a decision only you can make.That said, here are a few reasons to use a PM.1. If you are a rookie or lack experience, an experienced project manager can help lead your project down the right path.2. If you wish to scale your business, a PM is necessary as you can only manage so many projects at a time by yourself.3. Logistics. If your investment is out of your area, it is not productive to travel back and forth therefore a local PM is most useful.I have used and continue to use a PM, but my PM is my brother so I have an solid advantage knowing I have someone I can both count on and trust. I have a PM because my business operations consist of having anywhere from 5-15 projects going at once. I also project manage deals for other investors as they leverage my contacts, service providers, and team members to get the best pricing, plus they hire me because they don’t have my experience and having someone like me on the job makes for a more profitable venture for them.At the end of he day, you need to decide where you want to take your business, where you are know, what abilities you do or don’t have needed to complete all tasks, and then make a decision if a PM is right for your business at this time.

Sean Carroll · Answer

@Patrick Jackson So I find having a project manager is extremely helpful but only if it is the lead GC. Having a third party seems like it could be frustrating for the GC. For instance, Steven is our project manager and him and I coordinate everything together from scope of work, materials, permits, dumpsters, as well as weekly updates to the investor. This allows for us to work with a seamless transition from acquisition to demo to rehab to sell/rent. We found having too many cooks in the kitchen really slows down projects and can cause frustrations with communication.

Doug W. · Answer

@Patrick JacksonMostly it's jumping on the phone with each other every day and texting one another like we are teenage girls. He also texts me photos of the job sites when I am not at a particular house for several days in a row.At critical parts of a project's timeline I do dedicate myself to being onsite and I require him to be there with me. I think that my background in having managed rehabs myself gives me a good perspective on what order things need to happen in. This way I can already anticipate where we should be on the project timeline and when.Overall he is charged with keeping the projects on track. This includes all scheduling of subs and inspections. The only time I handle inspections is when I know the inspector(s) or I foresee there being an issue.It's also on him to let me know in advance when he needs finish materials to be onsite. I try hard not to stock any materials until they are needed. It takes up too much room in my garage or ends up at the job site where I worry about it getting stolen or damaged. So, yeah, it's nothing really sophisticated.

Patrick Jackson · Answer

Doug W. What system do you or your project manager use to manage the multiple projects you have going on?

Patrick Jackson · Answer

I have heard many many stories of GC’s running off with investors money. Especially if the project is out of town for the investor. Nothing wrong with having a security guard that you can trust with your project. Just need to work with the right one.