All Forum Posts by: Dan Clark

I did have a couple of bids and had two quotes for the work that was done. As the work was done the contractor submitted "draws" (which I have read as invoices.)The quotes totaled $31,286. That was the agreed upon total quote for the job.

Over the four months it took to complete the project I received a total of four invoices as each part of the house was completed for a total of $36,593. I have only paid the contractor $28,000. The contractor's last invoice made no sense to me and brought the total up greater than $5,307 over the quoted price.

Thanks guys. No this is just about 5k. I'm not thinking about litigation. I just want to have all the information about this cost of doing business so that I can be assured that he isn't overcharging me. I have my RE/PM trying to figure this out. If she can't I will have to get an answer directly. Thanks again!

She agrees that it doesn't make sense and she has emailed the contractor and tried to get an answer about the discrepancy. She told me she is not aware of any law that requires contractors to list an itemized audit of material labor costs. It seems to me that it should be an easy thing to obtain. Heck the mechanics at your garage always give that to you when you get your car fixed.

I have just rehabbed a home in San Antonio, TX. I will be selling this home soon. It is now under contract. I did not use a GC for this rehab. I had my RE agent act as the project manager. The problem I have is that the last invoice that I have received from one of my contractors makes no sense. I sense some financial impropriety.

The question I have for the community is: 

Is there a Texas law that allows for me to get an audit of the material and labor costs? I want this from my contractor so I can try and make sense of his invoices and try and detect why his last invoice made no sense and whether there is any scam being played.

If I'm following Yasmine and Ricardo on this post correctly then 10% of the cost of rehab is a generous payment for managing a rehab?

Let me clarify. I am saying the project manager (who is the RE agent) will be functioning as a manager of the subcontractors and will be in some ways like a GC, however their will be no GC for this rehab. This RE agent has no experience or training in carpentry, plumbing, electrical, roofing, etc. They will not be involved in the manual labor of the rehab. They will instead be managing the subcontractors throughout the rehab. They will get the bids, ensure the subcontractors adhere to deadlines, monitor their progress and general quality of work. 

I am interested in a rehab in the San Antonio, TX market. The project manager is ALSO my RE agent. The home is a small, old (1940) 1,000 sf sfh. This home needs approximately $25,000 in rehab. I expect to sell for around 120K. From what I have read by previous posters on this topic on bigger projects I think a 15% take on profit to be a fair payment for project management. Is this correct?

This RE agent also wants to be my seller and expects the typical 6% commission. IF it is true that 15% of profits is a FAIR payment for a PM, then is it also fair for this RE agent to receive a 6% commission?

I'm interested in a rehab in the San Antonio, TX market. The project manager is also my RE agent. The home is a small, old (1940) 1,000sf sfh. This home needs approximately $25,000 in rehab. From what I have read by previous posters on this thread I think a 15% take on the flip's profit would be a fair payment for a project managers services. Is this correct?

This RE agent also wants to be my seller and expects 6% commission on the sale. IF it is true that 15% of profits is a FAIR payment for a PM, then is it also fair for this RE agent to receive a 6% commission on the sale?

I am interested in a rehab in the San Antonio, TX market. The project manager is ALSO my RE agent. The home is a small, old (1940) 1,000 sf sfh. This home needs approximately $25,000 in rehab. From what I have read by previous posters on this thread I think a 15% take on profit to be a fair payment for project management. Is this correct?

This RE agent also wants to be my seller and expects the typical 6% commission. IF it is true that 15% of profits is a FAIR payment for a PM, then is it also fair for this RE agent to receive a 6% commission? Or is this too sweet of a deal for them?

I am interested in a rehab in the San Antonio, TX market. The project manager is ALSO my RE agent. The home is a small, old (1940) 1,000 sf sfh. This home needs approximately $25,000 in rehab. From what I have read by previous posters on this thread I think a 15% take on profit to be a fair payment for project management. Is this correct?  

This RE agent also wants to be my seller and expects the typical 6% commission. IF it is true that 15% of profits is a FAIR payment for a PM, then is it also fair for this RE agent to receive a 6% commission?  Or is this too sweet of a deal for them?