Making draws from hard money loan

[Ben M.]

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

[Eliott Elias]

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.