Need help with understanding draws!!!!

[Brendan Henry-Lambert]

How does the draw process/schedule work when borrowing from a private lender (in as much detail as possible)?

Including:

1. After having the property inspected and appraised 

2. Closing on the purchase 

3. Draw scheduling/process (detail)

4. First draw

5. "Junk fees", unknowns, helpful tips/hints

Thanks BP!

Brendan

[Christopher Blanco]

Hi @Brendan Henry-Lambert

For us, draws are up to you and your contractor. You should work with a lender who works with your business model and rehab schedule. Some times a rehab can be done in a single draw, sometimes 3 or 4 are needed. For my lender the draws are set up initially, then you call when you are ready for a draw, we send an inspector out that compares your SOW and the work done. If everything meets the SOW the money is released. Feel free to reach out if you want some more detail.