We are paying off debt while we invest; however, we had significant debts elsewhere and are on a strict payoff of our debt with specific pay off milestones in our debt payoff plan.

I am not opposed to draw at pre defined milestones but money up front is a red flag for me.  

I also get to look back and see that I am consistently meeting milestones before plan.

Why don't you GIVE them to milestone posters! 

Hey All, If you have been thinking of buying/or selling a condo there are a few new mandates that are going to be required from each association in regards to the Milestone Inspection and Structural Integrity Reserve Studies.

I am guessing the $60k for construction is paid out in traunches or based on phases/milestones of the project or something? 

Yes, make milestone draws, i.e kitchen done. draw.

Bottom line quote that we pay out in specified milestones (which align with our hard money lenders payouts). - besides or JV partner watching progress, on completion we hold back a portion of the payout pending a final residential inspection. 

With that milestone approaching, I've been spending more and more time gathering as much REI information as I can get my hands on - which is ultimately how I stumbled upon the BP site.

The contractor should get paid based on a draw schedule, based on key milestones of completion.