Construction draw hard money lender Question
So I am looking at a hard money lenders website (Lending One ) being new to Investing I was doing some research . Here is what it says in the faq
Do you fund the repair cost
Yes, we specialize in Fix/Flip lending that includes Repair Costs. We will lend up to 90% of the purchase price and up to 90% of the rehab costs or up to 65% of the after repair value. The repairs are handled via construction draws.
How are construction draws handled
Our borrowers request a draw. Within 48 hours, one of our licensed contractors inspects the work completed. Within 24 hours after the inspection, the funds are released. There is a $150 charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws go directly to our contractors to ensure that the work is done properly and within code.
So they will fund the repairs in the loan after the repairs are completed ? Which means I pay upfront repair cost.