All Forum Posts by: Chelsea Gulling

Hi there!

I recently teamed up with two partners to sponsor the acquisition and management of a portfolio of five distressed multifamily properties totaling 41 units. All buildings have leaky roofs, faulty heaters, poor foundations and very dated interiors. The previous owner was basically a slumlord and tenants knew it. We received a rehab loan upfront and will be doing $250,000-$300,000 of repairs to develop a baseline for these buildings. The team and I have recently decided that I will be managing the contracts and construction projects and be additionally compensated for my role.

My question is around what is a fair price for my work? I will still be having other tasks in my owner/management role so this would be considered a job. I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project. We originally said that I would get 7% of the invoiced contracts but after getting into this a little bit, I feel that given the complexity of the project, I should charge 10%. This will be my first project management job of its kind in the industry, but I have been a project manager in another field for nearly a decade and am not new to issuing contracts to construction.

Questions:

• 1) What is a fair price for an owner/sponsor to receive for an addition role of construction project manager on a major renovation/rehab?
• 2) To what degree does the complexity of the project impact the commission?
• 3) Are there other factors that I should be considering?

Thank you!

-Chelsea

Hi there!

I recently teamed up with two partners to sponsor the acquisition and management of a portfolio of five distressed multifamily properties totaling 41 units. All buildings have leaky roofs, faulty heaters, poor foundations and very dated interiors. The previous owner was basically a slumlord and tenants knew it. We received a rehab loan upfront and will be doing $250,000-$300,000 of repairs to develop a baseline for these buildings. The team and I have recently decided that I will be managing the contracts and construction projects and be additionally compensated for my role.

My question is around what is a fair price for my work? I will still be having other tasks in my owner/management role so this would be considered a job. I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project. We originally said that I would get 7% of the invoiced contracts but after getting into this a little bit, I feel that given the complexity of the project, I should charge 10%. This will be my first project management job of its kind in the industry, but I have been a project manager in another field for nearly a decade and am not new to issuing contracts to construction.

Questions:

• 1) What is a fair price for an owner/sponsor to receive for an addition role of construction project manager on a major renovation/rehab?
• 2) To what degree does the complexity of the project impact the commission?
• 3) Are there other factors that I should be considering?

Thank you!

-Chelsea

Hi there!

I recently teamed up with two partners to sponsor the acquisition and management of a portfolio of five distressed multifamily properties totaling 41 units. All buildings have leaky roofs, faulty heaters, poor foundations and very dated interiors. The previous owner was basically a slumlord and tenants knew it. We received a rehab loan upfront and will be doing $250,000-$300,000 of repairs to develop a baseline for these buildings. The team and I have recently decided that I will be managing the contracts and construction projects and be additionally compensated for my role.

My question is around what is a fair price for my work? I will still be having other tasks in my owner/management role so this would be considered a job. I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project. We originally said that I would get 7% of the invoiced contracts but after getting into this a little bit, I feel that given the complexity of the project, I should charge 10%. This will be my first project management job of its kind in the industry, but I have been a project manager in another field for nearly a decade and am not new to issuing contracts to construction.

Questions:

• 1) What is a fair price for an owner/sponsor to receive for an addition role of construction project manager on a major renovation/rehab?
• 2) To what degree does the complexity of the project impact the commission?
• 3) Are there other factors that I should be considering?

Thank you!

-Chelsea

Hi there!

I recently teamed up with two partners to sponsor the acquisition and management of a portfolio of five distressed multifamily properties totaling 41 units. All buildings have leaky roofs, faulty heaters, poor foundations and very dated interiors. The previous owner was basically a slumlord and tenants knew it. We received a rehab loan upfront and will be doing $250,000-$300,000 of repairs to develop a baseline for these buildings. The team and I have recently decided that I will be managing the contracts and construction projects and be additionally compensated for my role.

My question is around what is a fair price for my work? I will still be having other tasks in my owner/management role so this would be considered a job. I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project. We originally said that I would get 7% of the invoiced contracts but after getting into this a little bit, I feel that given the complexity of the project, I should charge 10%. This will be my first project management job of its kind in the industry, but I have been a project manager in another field for nearly a decade and am not new to issuing contracts to construction.

Questions:

• 1) What is a fair price for an owner/sponsor to receive for an addition role of construction project manager on a major renovation/rehab?
• 2) To what degree does the complexity of the project impact the commission?
• 3) Are there other factors that I should be considering?

Thank you!

-Chelsea

Hi there! 

I recently teamed up with two partners to sponsor the acquisition and management of a portfolio of five distressed multifamily properties totaling 41 units. All buildings have leaky roofs, faulty heaters, poor foundations and very dated interiors. The previous owner was basically a slumlord and tenants knew it. We received a rehab loan upfront and will be doing $250,000-$300,000 of repairs to develop a baseline for these buildings. The team and I have recently decided that I will be managing the contracts and construction projects and be additionally compensated for my role. 

My question is around what is a fair price for my work? I will still be having other tasks in my owner/management role so this would be considered a job. I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project. We originally said that I would get 7% of the invoiced contracts but after getting into this a little bit, I feel that given the complexity of the project, I should charge 10%. This will be my first project management job of its kind in the industry, but I have been a project manager in another field for nearly a decade and am not new to issuing contracts to construction. 

Questions:

• 1) What is a fair price for an owner/sponsor to receive for an addition role of construction project manager on a major renovation/rehab?
• 2) To what degree does the complexity of the project impact the commission?
• 3) Are there other factors that I should be considering?

Thank you!

-Chelsea

Hi! I am looking for a simple contract template for a small scale debt investor to use in a current deal. Does anyone have one they can share? Huge help!

Thanks!

Also, Jaime, you might remember me from my AFACT days---we had coffee about 5 years back while I was working on the detox issue with First Cov:)

@Jamie Rose

I am down! Anyone interested in a zoom even in the meantime? I would be happy to set it up. Maybe the week after next? Friday afternoon (the 13th?) Something else? 

I would be happy to loosely come up with an agenda, but perhaps we could just all report on who we are and our general goals for ANC real estate investing? We could plan on meeting for an hour? Thanks for suggesting Jamie!

@Jamie Rose @Stevie Duff @Chris S. @David Lewis

Hi! 

A friend and I are working to develop an offer for our first BRRRR in Albuquerque. We found a guy willing to sell two properties by calling owners who had listed places for rent.

Both are great properties that need cosmetic repairs---One is a 5-plex near the university and the other is a property in a desirable neighborhood that has two 2 bed/1 bath buildings on the lot. 

We are interested in both and are working to develop offers. Obviously we need a fairly accurate ARV on both properties as we plan to BRRRR. We are having difficulty though because New Mexico is a non-disclosure state and both properties are fairly unique for the neighborhoods.

We are looking for a realtor who we can pay an hourly rate to help up develop comps, but beyond that, does anyone anyone have tips? 

THANK YOU!

Hi Stevie!

I am also a newbie (not to anchorage but to investing) and would love to meet up! I have been thinking about trying to organize something before summer hits--Let me know if you (or others) are interested in planning!