congratulations on your milestone.

We then disburse to the Contractor based on the contract, and most require 25 - 50 % once a schedule is locked in; larger projects may have additional scheduled draws based on completion milestones; and the final 10% is paid after the completed job is reviewed and approved by us and the Owner (if local or flying in).

Here are some pros and cons to using a Home Equity Line of Credit (HELOC) or Bank Construction Loan:HELOC:Pros:- Generally offers lower interest rates than a traditional construction loan- Can be used for a variety of purposes beyond home construction- Interest may be tax-deductibleCons:- Payment terms can be variable and may increase over time- Lender may require a minimum draw or balance, which could tie up funds you may need for other expenses- Generally requires a high credit score and significant home equity to qualifyBank Construction Loan:Pros:- Funds are typically disbursed in installments based on project milestones, which can help keep costs under control- Interest rates may be fixed, which can help with budgeting and planning- Lender may offer a longer repayment period than a HELOCCons:- Interest rates on construction loans are generally higher than those on HELOCs- Lender may require a higher down payment and significant financial documentation- The loan may require a personal guarantee or collateral, such as a lien on the propertyUltimately, the best option for you will depend on your individual financial situation and goals.

I had built up a network of agents, wholesalers, designers, contractors, and lenders.In hindsight, that experience and network was even more valuable than the financial milestones.

@Sam Rust Congratulations on achieving this milestone.

Make sure you get the draw checks made out to you and disburse them to the contractor only when they meet their milestones.

I understand, the basics anyway, of how hard money loans work, but I am wondering if I could get some help on how to structure a deal.I have been working as a realtor for the past year, after being laid off for over a year prior, so my cash reserves are limited, however, I have a strong credit score, and have about $20,000.00 in credit card availability.What I would like to do is structure a deal that would cover my acquisition costs, and then have milestone draws to pay for the repairs after they are done, which would pay off my credit cards to free up reserves for the next milestone draw.Acquisition Cost, including Closing Costs would be around $30,000.00, and I anticipate the repairs will run about $40,000.00.  

The builder will want draws at certain milestones (poured slab, framing completion, mechanical/electrical rough-in, etc.) 

I would set some goals and a timeline so you can pace yourself and have milestones to accomplish.

You are in the right Real Estate Group.First, make a plan along with goals and milestones.