How did your last draw request actually go?

Question

Trying to understand how draws actually play out on real deals.  This aspect of the project has me nervous and I know this community has a lot of knowledge and experience.

On your last draw request - what did it actually take to get it submitted?

• How were you getting photos from contractors?

• Where did everything live before you submitted?

• What ended up taking the most time?

I’ve seen a few people say it turns into digging through texts and photos at the last minute, but not sure if that’s normal or just disorganized projects or just expected chaos.

Would be helpful to hear how it actually went for you - especially if anything didn’t go smoothly.

Thanks!

Peter Mckernan · Answer

It depends on how the lender is doing the draws. They are leapfrog style. For example, you pay 20K for a kitchen remodel they come in check it all then pay you 20K once checked out. Some of these lenders use an app for you the login onsite and do the photos, some hire someone to go out and do the inspection, and some will have a portal to upload photos. You should find out the process upfront and get a feel for some other people that have worked with that lender too. There are lenders I have heard have held funds and even only given a small amount to the flipper. I have had that happen to me too early on, and if you do not match the scope of work you submitted with the lender it could really take a big hit to your recoup on the draw. Also, a lot of lenders will not cover all materials/labor they may only cover labor so make sure you are clear on that too!

Tommy Reeves · Answer

Done draws on 10 hard money projects in Baltimore and it's honestly not that bad once you get a system. My lender sends an inspector after each milestone, they walk the property, confirm the work matches the scope of work you submitted at closing, and you get the draw within a couple days.

The thing that catches people is the scope document. Whatever you submitted at closing is what the inspector checks against. I added a second bath on an early project that wasn't on the original scope and the inspector said work looks great but it's not on the draw schedule so no draw for it. Learned real quick to get the scope right up front and stick to it.

What I do now is my GC Andre sends me photos at each milestone before I even request the draw. I look them over, make sure nothing's going to surprise the inspector, then submit. Whole process is maybe two days from request to funds if the lender isn't slow. The bigger issue is keeping your GC on the draw schedule. If they start work out of order or get ahead of the inspections you're chasing paperwork. I tell Andre the draw schedule IS the project timeline. Finish the milestone, get inspected, get paid, start the next one. It keeps everything clean and keeps him accountable because he doesn't see money until the inspector signs off.

J Castro · Answer

Hi @Andrew Dissick, welcome to BP!From a lender’s perspective—what you’re describing is pretty common, especially on less organized projects.

On a typical draw request, we’re looking for:

• Clear scope completion (what was actually finished vs. original budget)
• Photos of completed work (before/after or progress shots)
• Invoices/receipts from contractors or materials
• Sometimes a draw request form summarizing it all

Where things usually break down:

• Photos scattered across texts/emails
• No clear tracking of what’s been completed vs. budget
• Missing or delayed invoices from contractors

That’s what causes the “last-minute scramble.”

The smoother projects we see usually have:

• A shared folder (Google Drive/Dropbox) organized by draw # + line items
• Contractors sending photos + invoices in real time, not at the end
• A simple tracker (even a spreadsheet) tying budget → work completed → draw amount

What takes the most time?Not the submission—it’s gathering clean documentation.

Bottom line: draws aren’t meant to be chaotic. When documentation is clean and organized, approvals move quickly. When it’s scattered, everything slows down.

Michael Wyatt · Answer

I think this is highly dependent on the lender's process, they can vary a lot.  If they use something like Company Cam or ProxyPics it's pretty easy.  If you live close by go and take the photos yourself.  If not, I'd get a 3rd party.  You can toss someone like 50 bucks to do inspections for you, or if your real estate agent is cool ask them to do it.

Michael S. · Answer

@Andrew Dissick - and this is why we use a local bank that knows us.

Let's say we need a 20k draw.

I send an email that says "Good morning.  At your earliest convenience, please forward a 20k draw on property X.  Thanks."

Response from bank: "Money is in the account.  Have a nice day."

No pics.  No inspections.  No wasted time.  No points.  No hidden fees.  No delayed closings.  Trust and long term relationships are how we do our financing.

Lipa F. · Answer

Yes—the draw process should be a major factor when deciding which lender to choose.

Andrew Dissick · Answer

That’s helpful — especially the part about things not matching the scope.

When that happened to you early on, what actually caused it?

Was it something missing from what you submitted, or the work didn’t line up with what the lender expected?

How did your last draw request actually go?

Most Popular Reply