An inspector will reach out to you to schedule a property visit, so expect that you may receive an incoming call from someone unfamiliar to you. If you provided a lock-box code, the inspector can complete the property visit without taking time out of your day. After the site visit the inspector will communicate their findings back to us which we will review before releasing funds to your account.
Generally, funds can be deposited into your account within seven business days of your request. You can help ensure a smooth process by:
Funds are only deposited by bank wire. You can prevent unnecessary delays if you provide us with wiring instructions at the loan closing or when you submit a draw request.
Because we use an independent third-party to conduct an inspection for every draw request, a charge will be deducted from the approved draw amount. The charge may vary depending upon the location but is typically between $100 and $250 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 $19,750 ($20,000 less the $250 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 $250 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.
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 incurred. Funds will not be approved to pay outstanding invoices.
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 reapportioned to cover an extra $700 cost of plumbing and $1,300 of countertops as long as the total budget amount does not change ($2,000 minus $700 minus $1,300 equals zero net change to the total budget).
Every budget should include a 10% contingency to cover unexpected work. For example, after you have ownership of the property you discover that the roof needs repair or the sewer line connection has rotted out, neither of which were anticipated in the budget. The contingency dollars remaining in the budget could be used to offset those costs 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 contingency funds can only be advanced as a final draw request once the project is 100% finished.
Yes. An email will be sent to the address we have on file after the funds have been wired to your account.