All Forum Posts by: Liam ONeill

@Calvin Ozanick that’s interesting. How else do you profit? No placement fee? % of late fee collected?

@Peter. T I agree that there should be some sort of compensation for project management. I think 10% is high for calling a contractor to provide a quote. Following up to find out when they will be there. If you hire a roofer to rip and replace a roof and it’s $10000 do you really have much to do that you can justify $1000 payment. You are most likely not picking out materials, pulling permits. Correct me if I’m wrong but You’re most likely calling them, meeting them at the site, stopping by to make sure they show up when they say they will to do the work, verifying the finished product and making sure your client pays the roofer. Maybe 4-5hrs of work for a pm. $200-$250hr that’s a good payday. I’m an electrical contractor so I understand the value of time. I can’t charge people for unless I am on site doing a job. Or if I send someone there to do it. But I purchase material, lay out the job, answer any questions the technician has, and put my license on the line for it. Seems like double dipping when you get a GC involved. That’s my point.

@Peter T. I agree there will be attention needed from the PM. I would think it wouldn’t go passed inspecting finished products or verifying change order work needs to be done. And an occasional progress pic here and there.

I would think the contractor doing the work would pull any permits. Not the PM. In my area you need a contractor license or be the owner to pull permits.

The contractor would have the best pricing on materials because of accounts they have at supply houses.

I get that certain contractors need to be watched. And if the pm is on site every day communicating I can swallow the 10%. I just think your not getting the best deal for the owner if you’re hiring a GC who will mark up their subs price 10-30% then the PM marks up another 10%. Just my thoughts. I appreciate your comments to help see both sides.

@Peter T. Thank you both for your Input. I believe everyone should be paid for work they do. Would you charge 10% for a big project then hire a GC who basically manages the subs and scopes of work? Just curious if that seems normal. I can see if you charged 10% then hire individual trades so you act as GC coordinating and laying out scopes.

Is it industry standard for a property manager to charge 10% of renovation cost over 10,000 because typically there will be attention needed from them. I should mention the pm hired a general contractor who gave us a quote for the work and manages all of the trades and coordinates the work. Seems like I’m paying twice for the same responsibilities. Any advice or experience in this would be greatly appreciated.

@Kathy Henley I agree. Thanks for your input. She was given until Sunday so she received an extra 6 days. After she left we changed the locks and did our walk through. There is water damage and some mold. Not a deal I would have bought had I done things right and inspected the property. I was too excited about jumping in. On the other hand I’m glad I made the move to break through my fears and get the ball rolling. Making contacts and getting plugged into the area. I picked a market that I can afford to buy with cash and to take advantage of the benefit of saving on lender fees and interest. We’ll see what happens. Now I just have to try to control the budget on the renovations that will definitely be bigger than expected.

What can I say? After obsessively listening to BiggerPockets and similar podcasts. Reading some books , talking to out of state agents, Property managers, an attorney and a lender all in a market out of state. I've done so much research and still skipped some crucial steps. Waived inspection 🤦🏼‍♂️ . After seeing pictures and checking the numbers. I finally pulled the trigger on a wholesale deal with plans to BRRRR it.

So far. I’ve closed on the property with cash.

I sent my PM over to do a walk through the day after closing and Bam. We have a problem. The old owner is still living there. We contact the seller and he informs us she asked for an extra week the day of closing but he never brought it to our attention. Seems like he didn’t want to delay closing. After a few days of trying, today 6 days after closing , we finally made contact with the occupant. She asked for another week. That will put us about 2 weeks out from closing if she actually leaves and doesn’t ride out the month. My attorney says serve the 10day notice to vacate and evict in court if necessary and possibly sue for liquidated damages. Has anyone experienced a similar case? I’ll post the progress of this dilemma as we proceed.