Rehab schedule vs construction loan draw schedule

Managing this part of the process is usually very hard for the traditional investor.  Lots of traps, lots of financial education so to speak.  

This also will choke/bankrupt a project.  If the project gets to the point where you are getting a small draw, then doing little work, then start the draw process again, get a little draw, do very little work, etc.  That will kill, kill you.

Construction has a capital intensive nature.  Materials and labor are not cheap.  20% upfront is not crazy at all.  But again, when you have a GC, you are trusting a third party with money and execution.  I can't tell you how many GC ran projects went south on time and money.

To do this phase of the project correctly in my opinion, you need to front as much of the rehab as you can.  At least 50% if you want this done in two draws.  You put up 50%, then do a big draw, that money is used to complete the project and get the contractors paid, and then the final draw is your 50% back.

But I would go right to the laborers, the workers, and I would hold the money and decide when final payment gets released.  You have to be your GC, IMO.  No one will watch the dollars like you, no one.