The rehab money is usually paid in draws and not financed individually.

This gives you flexibility to draw funds as needed rather than taking a lump sum upfront.2.

(Sometimes larger jobs do require deposits, but we are working with companies we have used many times in the past or have some sort of draw schedule as work is completed). 

The 50k in rehab money goes into an escrow account and held there until enough work was done in the house that a draw can be made. 

The commercial loan allowed me to draw up to 85% of the ARV as needed and allowed me to fund the Renovation.

I could draw you a map of Sacramento sometime :-)

Holdback of capital improvement budget to be released in draws as work is completed per Wellings’ unilateral approval plus annual budget approval rights5.

And I agree that it is a niche market segment and that they draw a different clientele.

If it is a regular rental, draw up paperwork that clearly outlines how much money they lent you, when it will be paid back and how much (eg if you buy a house for $400K and 10 years later they move out and it sells for $500K-do they get a percentage of the profit (after taxes and costs)?

The builder will need to supply a Cost analysis, Blue print and a few other things prior to the Draw being negotiated and set up.The land that you own will act as "Equity" to offset the LTV/LTC so you are off to a good start.