What part of the draw process surprised you the most?

Question

For investors using hard money or private lenders, what part of the rehab draw process caught you off guard? I used to think “rehab funds included” meant the money was basically ready to use. But it seems like a lot depends on inspections, completed work, timing, fees, photos, reserves, and whether the lender releases anything upfront. For people who have actually done it, what did you wish you had understood before starting the project?

Stacy Raskin · Answer

If you are using a reputable lender, then the draw process during property rehab is straightforward. It's important that the submitted line by line rehab budget was accurate so it matches the money requested for the draw. For example, if there's a line for $10K for new flooring throughout the house then it's submitting the invoices for the materials and the labor to show that the cost was $10K. The lender will usual want either photos of the work or an in person inspection done to verify the work. If an in person inspection there might be a fee of around $199-$399 per visit to verify the work depending on the lender. After the receipts and photos or in person report is verified by the draw department, then the funds are released.

There are fix and flip programs with up to 90% of the purchase price and 100% on the rehab done on draws depending on borrower credit score and location of the property. Happy to connect to discuss further.

Mike Grudzien · Answer

The funds are ready to use as long as you follow the process.  It's not just manna from heaven.