How do weekly labor draws work for rehab projects?

We quote your full project price upfront. Instead of paying 30-50% as a deposit, you pay weekly as labor progresses. Each payment is credited toward your project total. Draws start at $4k/week for smaller projects and scale with project size. Materials are separate: we provide detailed lists and you purchase directly, so you control the spend.

Is SLH a project manager or contractor?

We're the licensed general contractor. Our crews do the work: demo, framing, plumbing, electrical, finishes, everything. We're not a middleman coordinating other contractors.

Why do investors purchase materials separately?

Transparency. Traditional contractors mark up materials or bundle them so you can't see what you're paying. We provide detailed material lists with quantities and timing. You buy directly from suppliers at cost. No hidden markup, full visibility.

What payment methods do you accept for rehab projects?

The $150 scope fee can be paid by credit card. All other payments (weekly labor draws, final balances) are wire transfer, check, or cash only. No credit cards for project payments.

How do I qualify for Portfolio Partner pricing?

You qualify with either 3 or more concurrent projects OR a commitment to 5+ projects per year. This gives you 10% off weekly labor draw rates plus priority scheduling and included pre-acquisition estimates.

Do you handle permits for rehab projects?

Yes, as an add-on service. We manage the entire permit process including applications, coordinating inspections, and maintaining documentation. Permit fees are passed through at cost.

How can I avoid paying a large contractor deposit?

Work with contractors who accept weekly labor draws with no deposit. Buy materials separately at cost. Align contractor payments with hard money lender draw releases. This eliminates the need for large upfront deposits.

How do weekly draws reduce my capital requirements?

Instead of $15,000-$20,000 locked in deposits, you carry $4,000-$8,000 in rolling weekly payments. Across multiple projects, this frees up tens of thousands in capital for other investments.

Can I use hard money to cover weekly contractor draws?

Yes. Hard money lender rehab escrow releases align well with weekly contractor draws. The lender releases funds for completed work, which is exactly how weekly draws are structured.

What is included in the $150 scope visit?

Full walkthrough, scope of work, cost breakdown showing labor and materials separately, timeline, and weekly draw schedule. You can see your exact capital requirements before committing.

Do you require any deposit at all?

No. Zero deposit. Work begins with a signed scope of work. Weekly draws start after the first week of completed labor.

How to Finance a Rehab Without Fronting Huge Deposits

You found a great deal. The numbers work. You've got your hard money lined up. Then the contractor says he needs $18,000 upfront. Now you're scrambling for cash that wasn't in your deal structure.

Big contractor deposits are capital killers. They tie up money that should be funding acquisitions, creating reserves, or staying liquid. Here's how to structure a rehab without fronting a dime in deposits.

Strategy 1: Weekly Labor Draws (No Deposit)

This is our model at Seller's Little Helpers. No deposit. Weekly draws for completed labor. Materials purchased separately.

On a $50K rehab:

$0 upfront to the contractor
$4,000/week as work happens
Materials at cost, purchased as needed

Your capital stays liquid until work is actually happening. Then it flows out in predictable weekly increments tied to verified progress.

Strategy 2: Hard Money Rehab Escrow

Most hard money lenders hold rehab funds in escrow. Structure your deal so the lender's escrow covers the rehab:

Lender funds purchase price + rehab budget
Rehab funds released as draws for completed work
Your out-of-pocket stays minimal

The key is matching your contractor's payment terms to the lender's draw process. Weekly contractor draws align with lender draw cycles naturally. Deposits don't.

Strategy 3: Investor-Purchased Materials

Even if you're working with a contractor who wants some payment structure, separate materials from labor:

You purchase materials directly at cost (no contractor markup)
Contractor bills labor only
Materials don't require a deposit because you're buying them as needed from suppliers

This alone can reduce the "deposit" a contractor needs by 30-40% since a big chunk of the deposit supposedly covers material purchases.

Strategy 4: Credit Lines for Short-Term Capital

A business line of credit or HELOC on another property can bridge short-term cash needs:

Draw on the credit line for weekly contractor payments
Repay from hard money lender draws as they're released
Your capital stays deployed in other investments

This only works if the interest cost is built into your deal analysis. But at 2-3 weeks of float time, the interest cost is minimal compared to having $18,000 sitting in a deposit.

What Doesn't Work

Putting deposits on credit cards. Interest rates are too high and it signals that your deal is undercapitalized.
Borrowing deposits from friends/family. Creates relationship risk for a problem that has a structural solution.
Negotiating smaller deposits. A $10,000 deposit is still a $10,000 deposit. The problem is the structure, not the amount.

The Capital Efficiency Argument

For investors scaling to 5+ deals per year, capital efficiency matters:

| | Deposit Model | Weekly Draw Model | |---|---|---| | Capital needed per project | $15,000-$20,000 deposit + reserves | $4,000-$8,000 rolling weekly | | 3 simultaneous projects | $45,000-$60,000 in deposits | $12,000-$24,000 rolling | | Capital freed for deals | Less | More | | Return on deployed capital | Lower (capital sitting in deposits) | Higher (capital working) |

Every dollar sitting in a contractor deposit is a dollar not earning returns somewhere else. Weekly draws minimize idle capital.

The Simplest Path

Stop giving contractors deposits. Work with contractors who accept weekly draws. Buy your own materials. Align your contractor payments with your lender draws. Keep your capital working.

This isn't complicated. It just requires working with contractors who've built their business to serve investors instead of relying on investor deposits.

Book a $150 scope visit at sellerslittlehelpers.com - zero deposit, weekly draws, materials at cost. The capital-efficient rehab model. Call (708) 536-6700 or email info@sellerslittlehelpers.com.