Draw Request

An inspector will reach out to you in 36 hours or less to schedule a property visit, so expect an incoming call/phone number from someone unfamiliar to you. If you provide a lock-box code, the inspector can complete the property visit without you present but always recommend you being there. The Inspection Report typically comes in within 24-48 hours from property inspection. We then review, approve and wire funds 24-48 hours thereafter!

Once we review the Inspection Report and confirm that the Draw Request amount is accurate, we will send a Draw Agreement (via Docusign) and when executed the wire will go out in 24 hours or less. Funds are only deposited by bank wire. You can prevent unnecessary delays if you provide us with wiring instructions at the loan closing.

Because we use an independent third-party professional inspection company to conduct FAST 24-48 hour inspections, a charge will be deducted from each approved draw amount. The full Draw Request charge may vary depending upon the location/construction loan type but is typically between $150 and $200 each time an inspector is sent out to the property. For example, if a Draw Request is approved for $20,000 and the maximum inspection fee applies you will receive net funds $19,800 ($20,000 less the $200 inspection charge).

The reimbursement percentage is determined prior to loan closing and is specific to your project. For example, if you were approved with 90 percent reimbursement terms and you requested a $25,000 draw, your net funding would be $22,250 using the maximum inspection rate ($25,000 x 90% less $200 inspection fee).

We need a little time to review the signed loan documents and get everything set up in our systems, so we typically ask that you wait about two weeks after loan closing before requesting your first draw. If you need something sooner, just reach out to us – we’ll do our best to help.

If you provide your soft cost invoices then we can reimburse without an inspection.

There is no limit to the number of draws you can request but, remember, there is a fee assessed each time. As a best practice, consider making draws once a month or when you’ve completed $10,000 of work. The last 10% of your rehab or construction budget is released only when the project is 100% finished.

No. Funds from a Draw Request may only be used to reimburse actual expenses that have been installed. Funds will not be approved to pay outstanding invoices for line items that have not been installed. (Ex. paid for cabinets, with an invoice, still must be installed or partially installed for partial draw reimbursement for that line item

No. The Supervision/Management line item should only be used for costs relating to paying a General Contractor or Fee Builder.

We get it – things don’t always go as planned. You can move dollars from one line item to another, but the total amount of the budget cannot be changed. For example, if the actual costs of the cabinetry lands at $8,000 and $10,000 was budgeted the $2,000 difference can be reallocated to cover an extra $1,000 cost of plumbing and $1,000 of countertops as long as the total budget amount does not change ($2,000 minus $100 minus $1,000 equals zero net change to the total budget).

We encourage that each budget should include a 5-10% contingency to cover unexpected work. For example, after you have closed on the property you discover that the that their is mold and walls need to be redone, which was not put into the budget. The contingency dollars remaining in the budget could be used to offset that unforeseen cost and get things back on track. Just provide a brief statement of explanation with your draw request and we’ll note the change as we work through the remainder of the project.

Yes, though the unused contingency funds can only be advanced as a final draw request once the project is 100% finished.

No – holdback funds that never get drawn, will not be included in the payoff as they were never borrowed.