Hello all! Fairly new member (officially a couple weeks now)
I can’t find it now but I know for certain it said section 4 (hadn’t just dreamed it up)
I’ve been investigating this property for a small while
descri...

The proposed drawing was beautiful. 

Also make sure to ask if they will be paying out by draws, how much does it cost you to have their inspector show up to check on progress before each draw is paid out. 

HELOC's can be called or draws suspended (especially under the current market conditions) - Refi is a new mortgage for the next 30 years. 

Don’t spend a grand on closing costs if the heloc only gives you access to $10,000 for example.....They can’t call a Heloc if you haven’t drawn on it, they can only shut it down from future draws.

I think it's important to draw on your experience and knowledge to consider these case by case.

If you are at 10k saved, you aren't ready to flip a house safely, even with a 203k loan. 203k for a flip is a great tool, but you have to understand how the draws work, work with the right contractors and know the renovation aspect from boot to hat.

I usually figure 5% because they draw families who don't want to move a lot.You left out Management (10%).

When we initially formed our operating LLC, we spent the time to draw up an operating agreement that clearly outlined roles and responsibilities.

The investor requests a draw for $10k to cover the first part of construction.