The contractors thought it was pretty strange to have to deal with someone in a different state, but it worked out pretty well. Our culture (at least here in the US) doesn't appreciate outsourcing day to day tasks (and I felt embarrassed telling people I had an assistant). Maybe this comes from our Protestant roots.
It reminds me of an episode of Garrison Keillor's Prairie Home Companion. Some of his characters from Minnesota visit California and find out one of their relatives has a gardener, and they ask if the relative is having any health issues, because they couldn't imagine having someone do their gardening for them, unless they were severely ill.
Update: The poster above mentions getting what you pay for if you pay $2 per hour in the Philippines for instance. I agree with this. I payed significantly more, but I feel as though I got my money's worth. It isn't that expensive to hire in the US if you look to lower cost areas like the Mid-west.
For this project, I felt it was worth it to have someone who understood the problems of hiring and managing contractors in the US. The person I hired was a homeowner, understood what I wanted to accomplish, and did an awesome job. It turned out to be a fraction of the cost of the overall project, and was money well spent.