For real estate investors, leveraging private money lenders can fuel portfolio growth. Central to this strategy is understanding the draw schedule.
Hard money lenders finance property purchases and rehab costs until the After Rehab Value (ARV) is reached.
unds are held in escrow and released in stages based on renovation milestones.
Inspections ensure quality work, with borrowers covering costs.
Delays or scope changes may necessitate extra inspections, adding to expenses.
Lien waivers are crucial to avoid complications, ensuring a smooth process for all parties involved.
Adhering closely to the draw schedule meticulously established with the lender based on a comprehensive scope of work can help you avoid unnecessary delays and expenses.