Rehab schedule vs construction loan draw schedule
Hi everyone,
I’m looking for some advice on construction draws for condo and townhome flips.
Right now, my GC asks for 20% upfront and is used to getting paid in 3 draws during the project. My hard money lender reimburses me through construction draws after work is completed, so sometimes my cash gets tight while waiting for the next draw.
I’m trying to make the rehab schedule and the draw schedule match better so I don’t have to put out too much cash upfront.
For those of you who flip condos or townhomes:
- How do you structure your GC payment schedule?
- How many draws do you usually use?
- Do you pay 20% upfront?
- How do you keep good cash flow without slowing down the project?
I’d really appreciate hearing what has worked for you. Thanks in advance!