Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule:The HomeStyle program has a maximum 4 draw process.The initial draw can be up to 50% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information:Ø Signed Draw Request by borrower and contractorØ Signed All Bills Paid AffidavitØ GMG review and approve the draw request and will release funds for disbursementØ A check will be issued in the name of the borrower and contractor and delivered to borrower via USPSØ An inspection of work to date will be performed at 50% completeFinal Draw Information:Ø Signed Draw RequestØ Final inspection/Completion Certificate will be required for release of final fundsØ A Title Update showing property free from lien or encumbranceØ General Contractor’s Lien Waiver AffidavitØ Affidavit of Completion GR will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns:Changes to the initial plan are not permitted unless prior approval by Guaranteed Rate.

There are more policies/regulations than I desire, but I consider it to be what is necessary to achieve the outstanding returns. 

Every coffee shop and restaurant has outstanding service.

IME (in my experience), you would charge a fee (say 50-100 basis points) to the banks/investors, often times based on the either the commitments or the outstanding balance of the fund. 

If it were an outstanding applicant and I was trying to get there business i may try to entice them, but generally I'm going to offer things like discounts on rent if they wanna sign for more than a year.  

I was able to get out of their management agreement at the 1 year mark, and switched to Valiant- my experience with them (a little more than 6 months so far) has been outstanding.  

Look at the values of your 2 properties, consider any outstanding debt, calculate what your payment might look like on a cash out refi, compare that to current or potential rents.

However with a long hold I do expect San Diego RE to have outstanding ROI.  

Other than outstanding taxes, and utilities, I don't need to worry about anything else.

I would not want to invest if I had outstanding debts, too much risk.