First-time flipper questions about Jumpstart Philly Program

[Diana Palavra]

Hello everyone,

I am planning my first fix-and-flip in Philly and I am thinking about using Jumpstart Philly program for our financing (Hard Money lending). I want to make sure I fully understand how they release the money so I can pay my contractor on time and avoid delays.

If you have used them recently, could you help me understand a few basics and tell me a little bit about your experience with them.

1. Speed: After the inspector checks the house, how many days does it usually take for the money to hit your bank account?
2. Partial work: Do they only give you money if a specific job is 100% finished? Or will they give you partial money if a job is only half done?
3. Fees: How much do they charge every time they send an inspector out?
4. The End: Do they hold back a chunk of the money at the very end of the project?

I really appreciate any advice or personal experiences you can share to help a beginner out!

Thanks

[Bo Smith]

Diana, Jumpstart's pretty straightforward once you understand their draw process. The key is managing their inspection timeline. Typically after the inspector signs off, you're looking at 5-7 business days for funds to hit your account. That's not fast, so you need to budget for it and make sure your contractor knows payment isn't same-day.

On partial work: they want to see substantial completion of a line item before they'll fund it. They're not going to fund 50% of a kitchen remodel. That said, talk to your inspector about sequencing -- sometimes you can batch smaller jobs together and get approval faster. The fee per inspection is usually 50-500 depending on the scope, and yeah, they'll hold 10% retainage at the end until final walkthrough.

The real thing to remember is that Jumpstart's underwriting is conservative. They're going to value the property lower than you think and budget the rehab higher. That's actually good for you because it means they won't starve you mid-project. Just make sure your contractor is experienced with hard money draws because some guys panic when they don't get paid within 48 hours.

What's your total project budget looking like, and is your contractor experienced with hard money deals?