Pay for partner or project manager

Pay for partner or project manager

Just want to know what people have paid.
If you find a home and bird dog it out, then you are hired for project manager, but you are always from the beginning, called a partner. How does this person get paid.
Do they just get paid in the beginning a flat fee for managing rehab?
Had a couple buyers from Madison offer 50% of the profit, plus money to find and rehab.
And was shocked to hear other buyers offered me and another investor, fees for finding, a fee if we do the rehabbing, and then 50% at the end.
So what is fair.
I didn't expect anything more at the end, but one partner mentioned it on what we would be making at the end.
the other partner yesterday was shocked and said she never heard of that. She if from the REI group, and so are the other investors I work with that offer that.
And I am also doing open houses and have been showing it while under rehab, have lots of interest.
Our value on the house went up over $80k in two months because of the medical center going in.
What is fair?

__________________


Sandi

This is what I do and it is just me. My private money partner funds the entire deal, I do the acquisition and run/manage the rehab and provide the listing agent when it is ready to retail. We do an equity split of 50/50 on the net profit at closing. I have no money out of pocket.

Good Luck,
Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Thanks Michael

I had asked the third person before and never got an answer. She is not the money partner, but linked us together and is our go between when I have questions, as the money person isn't savvy on this, just listens to her where to invest.
But we all three do talk.
He always implied I was getting something.
She told me yesterday, she'd ask him to give me a bonus when we sell.
Looks like I will stay with my other new investors.
The town I am rehabbing in, is almost impossible to get properties, they are selling that fast and even high end homes. A facility there is converting into a medical college and now home values are going up.
And I need to get my career in this moving. This is my first big project manager and it has worn me down with problems, BUT I have learned so much, and can't wait to do another.
My major problem now, is also lead paint.
She does not want the money person to spend more than $2500 on scraping and painting old cedar shingle type siding.
And she thinks I should hire high school kids for a second story house with power lines around it to scrape, put down tarps, wear masks and shop vac chips.
NO one I have asked would even consider it, and she is stressing me out over this.
We are smack in town on main street, near the court house and the inspector lives two blocks away. There is a $10k fine if not lead certified.
I know this is off the subject, but any thoughts.


deal partnering

Hi Sandi the 50/50 is my partnering of choice and it works just find and its a win-win for every one, you have done alot of work dont sell your self short, get what you should get thats only fair, Jim

__________________

jbischoff


Sandi

My advise would be to have the lead paint remediation done by pros that have that designation from the EPA. It will cost you do get this done right, but I think it will be cheaper than having teenagers scraping paint and having the chips and the dust improperly contained. Scraping and then "shop vac chips" could lead to a major fine. Ask the experts and provide the facts to your fellow investor.

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Paint

I sent her an email this morning and asked her to find someone as this is too much of a fine line.
She said she will make some calls with the REI group.
I do not want to be in the middle of these kids getting hurt, or getting a fine.
thanks for the help Smiling


Hey Sandi

I know everyone says get what's yours but I think you should take this as a lession and get this behind you. I know you need the money but if it's not in writing then thats more stress. Take what ever bounes with a smile, finish the job and get the next one under contract. Check your email I sent you a list of contractors from the REIA.


Steve

I did see your emails last night. But you know they both want to work another house with me. I told them no, but they said this was a good learning rehab, and you know all the problems I had with someone (contractor) on this. And he will not ever be working for me again.
But the other guy, don't want names on here. spent over a week re doing all the sloppy stuff the other ignored. But after my conversation with one of my partners yesterday, she said they were going to give a bonus to me and to him, for jumping in and making it right.
So I am okay with it, not caring much on my end, but Pat did hours and hours of work for free, because he was so upset with things, and wanted this to be a win win for all.
I have the other 4 contractors to thank for all pitching in, and giving some breaks on this one.
But I did get the phone number you left, but not sure if he will come out this far for the painting. Hopefully, he will.
Thanks Steve, appreciate our talks and some incentive you gave me to justify re doing that ceiling and hallway, looks soooo good now, and the kitchen looks awesome now!
Have a great day, and if we can get the retaining wall and drive done this week, IF we stop getting rain and snow and sleet showers, I want to have open house next weekend, try to come out.
Sandi


Steve

Just saw the list from the REI, I saw they were putting one together, but I didn't get it yet.
Thanks!


Great Info!

Thanks for your post. Everyone needs to look at this for future reference. Best Thing to do is DO IT RIGHT THE FIRST TIME!!

Bruce......


Syndicate content