@Account Closed- I have sort of "unique" way of doing things now. I don't have a GC in the way you are describing but rather a "point person" or on site manager who is there most every day, and does all my electrical, and alot of other skilled work like tile etc. He is very knowledgeable and is an electrician by trade, but grew up and has worked 20+ years in the construction trades. So, my deal with him is that we both share the responsibility of finding subs and getting quotes, he manages them onsite and as far as timing, I do all the design work and decisions about finishes, etc. He's gotten to know me well enough to know what my expectation level is, and we have both learned alot about the trials of managing subs. I do a detailed SOW, as well as a contract outlining the legal stuff, for the subs, and I also get lien waivers and W-9's before they get paid. It's my money funding the project, so I ultimately have the final authority, but I trust him enough to make on the spot decisions and keep things moving. For doing this, I pay him an hourly rate (varies per the work he is doing) and hehe earns a bonus- varying from 10-20% of the pre-tax profit. The variance in percent has to do with whether we are able to stick to the timeline he and I agreed upon. It really works for both of us. I know the real costs of the subs, and he knows he gets paid extra as long as we make a profit. He also has to have some trust in me, obviously, that I am not going to overspend. I give him full access to all receipts and even give him a printout of the budget/ spending when I produce his bonus payment. When I figure his bonus, it's pre-tax as I said (because I report it on his 1099), and I subtract all my costs including holding and taxes etc. before his bonus is calculated. Works for us, might work for you if you find the right person. He also still has the ability to go do other jobs while working on my flips if he isn't needed there, and in between, such as right now when I don't have a house to flip).
