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Updated almost 2 years ago on . Most recent reply
Making draws from hard money loan
I am in the middle of flipping a home under a hard money loan. I was thinking of not making any draws until the end of the rehab since I have to pay a fee every time to make draws so I am trying to avoid the fees. Is it okay to do this or is there something I might be missing and that it might be better to make the draws in between the rehab
Most Popular Reply

Making draws after the rehab will require you to use your own money to pay the contractor. To mitigate fees, have a maximum of three draws for your project. Have milestones that the contractor needs to hit per draw.