Hard Money Basics
Draw Schedules on Rehab and Construction Loans
No jargon and no sales pitch. This is how we explain it at the Averlend desk, with the math that matters.
Hard Money Basics
The short version, then the substance.
Key Takeaways
- What a draw schedule is
- Why it protects you too
- How to make draws fast
What a draw schedule is. Instead of wiring the whole rehab budget on day one, the lender releases funds in stages as work completes. Demo, rough-in, mechanicals, finish. Each completed stage triggers an inspection and the next release.
Why it protects you too. Draws keep the project honest. Contractors stay motivated by the next release, the budget cannot vanish in week one, and problems surface at stage two instead of at the final walkthrough when it is too late to fix them cheaply.
How to make draws fast. Front-load the paperwork: a clear scope of work with stage pricing before closing. At Averlend, local inspections mean draw requests turn around in days, because nothing is mailed to another state for review.
The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
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