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20% of the cost of the project. That is what a builders margin is.
1.5-3% of total project value for a third part PM depending on the overall project cost/complexity
what do you mean by 'third part PM', oh do you mean third party PM?
Hi everyone,
Does anyone know the charge or how much you are expected to pay someone to manage a investment project?
Let's say you would get roughly a 20% ROI? (before tax and before paying for the service)
Thank you!
Dex
What type of services do you mean?
Firstly I'd want more than 20% ROI on project but that's me.
I know some Perth project managers are quite pricey but they may include an awful lot. I charge 1.5% of construction contract to do what I call project management (assist with design, builder choice/tender, prestart choices, fortnightly report/up date on construction/site and assist with choosing rental/sales agent at end)
Services would include from start to finish:
Finding a property to investing with a report
Submitting all necessary applications
Design, finding a builder
Update report on construction
And what you've said (would there anymore extra important essential services I'm missing?)
Would that increase the %?
Just not financial side of things and the settlement stuff which are usually left to the lawyers anyway.
Definitely in the future I will look for higher ROI projects for investors. I originally thought 20% of the profits would be nice but looking at some of the responses it looks a bit too greedy and ambitious.
I'm now terribly confused. Are you asking if 20% is too much to charge someone to be their project manager for those things? Ten the answer is yes.
First finding a site isn't a project manager, nor is the report. You could possibly say the stuff after is though. I think it varies based on the contract amount but I doubt it's more than 5% for after purchase items.
Sorry some clarification, 3-4% on the total project value. For example, if the after development the value of the property/ies is worth $1m then I'll charge $30-40k
Is that reasonable for still too much?
Yeah I meant if it was too much. Okay so let's say property scouting and project management together, would that warrant a higher percentage like around 3-4% then?