Hiring a Project Manager for Out-of-State Flips

[James Dolan]

Hi All,

I've been wholesaling out-of-state properties for about a year and would like to start taking on some of the opportunities I come across for myself. I've started to build a team on the ground that can assist in flipping these homes from out-of-state but still need to bring on a reliable Project Manager to keep an eye on my contractors and progress of these projects. Looking for any tips or suggestions on the topic. Thank you.

[James Wise]

Originally posted by @Michael Noto:

@James Dolan A quality GC will most likely not be willing to work at a discount in my experience. When you try and negotiate with them you are essentially trying to cut into their personal fee for managing the project which they can take personally. They aren't going to pay their guys or subs less than past projects so any negotiation down will come directly out of their pocket. 

Also, when you are rehabbing out of state the success or failure of your project will be more in the hands of the GC than you. Worth paying for the best GC your numbers will allow. You want them working with a clear head and going the extra mile for you when necessary. You do not want them thinking "well this guy squeezed me, I'll put off his project today and get to these issues tomorrow." 

Discounts are a no go. There are two types of contractors. The hand to mouth guys which I spoke about in a previous post in this thread. It's honestly a stretch calling those guys contractors. They are really subs &/or day laborer types. Your big outfits that are capable of running the business like a business to the point where you can trust them to act as your project manager are usually booked out months in advance. They turn down more work than they accept and a dude who's trying to find a way to squeeze out discounts here or there so he can hit his targeted "ROI" are not their target customer. Most won't work with out of state investors hoping with this type of plan, so pickens' will be slim. In essence you need them for your business a lot more than they need you. Be smart, don't turn them off by trying to squeeze them, they will simply ghost you.