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Updated about 1 year ago,

User Stats

102
Posts
25
Votes
Ron Hollingsworth
  • Investor
  • Phoenix, AZ
25
Votes |
102
Posts

Hard Money Draw Question

Ron Hollingsworth
  • Investor
  • Phoenix, AZ
Posted

So I've done a few flips using hard money and I'm running into the issue of them sending out their inspector to verify work, however between the time that I sent the lender the SOW (while in escrow) and the time we actually start work, the scope changes.  Usually once we start the project, we learn of new or additional repairs that have to be done.  We spend the time and money to address these "new" issues, however the lender/inspector have not been taking these repairs into consideration when approving the next draw.  So, the draw is less than it needs to be putting me in a situation where I need to come in with additional cash outside of what I have budgeted for the project.  This screws up other projects or my personal finances.  Can anyone share with me what I could do differently to circumvent this issue?

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