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 do weekly contractor draws work with hard money lenders?

Your contractor submits a weekly draw with documentation. You forward that to your lender as a draw request. The lender releases funds for verified work. When the cycles sync, your out-of-pocket stays minimal.

Do hard money lenders cover contractor deposits?

Usually not. Lenders release funds for completed work, not deposits. This means you front the deposit from your own cash. Weekly draws eliminate this problem because there is no deposit.

What documentation do hard money lenders need for draws?

Photos of completed work, contractor invoices or draw requests, comparison to the original scope, and sometimes a third-party inspection. Our weekly draw packages include all of this by default.

What is included in the $150 scope visit?

Full walkthrough, scope of work, cost breakdown, timeline, and weekly draw schedule. The scope document is formatted to meet hard money lender requirements for initial project approval.

How much out-of-pocket do I need with weekly draws?

Typically $4,000-$8,000 at any time while waiting for the lender release cycle to catch up. Compare that to $15,000-$20,000+ in deposits under the traditional model.

Hard Money Lenders and Contractor Draws: How They Work Together

If you're using hard money, you already know the lender holds your rehab funds in escrow and releases them in draws as work gets completed. Here's what most investors miss: your contractor payment structure should match your lender's draw process. When it does, your out-of-pocket shrinks dramatically.

How Hard Money Rehab Draws Work

Most hard money lenders structure rehab funding like this:

You close on the property. Purchase price funded by the lender. Rehab funds held in escrow.
Work gets done.
You submit a draw request with documentation (photos, invoices, proof of completion).
Lender sends an inspector or reviews documentation.
Lender releases funds for the verified completed work.
Repeat until rehab is complete.

The key word is "verified completed work." Lenders don't release money for promises. They release money for work they can see.

Why Weekly Draws Match Perfectly

Most hard money lenders process draws every 1-2 weeks. Weekly contractor draws align with this cadence:

Friday: Your contractor submits the weekly draw request with photos and completion details
Monday: You submit that same documentation to your lender
Wednesday-Friday: Lender reviews and releases funds
Following Friday: You pay the contractor from the released funds

When the cycles sync, your out-of-pocket on the rehab stays minimal. The lender's money funds the work, and your contractor gets paid weekly.

The Deposit Model Breaks This

With a deposit-based contractor, the math doesn't work:

You need $15,000 for the contractor deposit on Day 1
The lender won't release $15,000 for work that hasn't been done
You front the $15,000 from your own pocket
That's $15,000 you have to carry until enough work is completed for the lender to reimburse it

With weekly draws, you never front a large amount. Your first draw request to the lender might be $4,000-$5,000 after Week 1. That's your maximum out-of-pocket before the lender release cycle catches up.

Lender Documentation Requirements

Hard money lenders typically want:

Photos of completed work (before and after for each draw period)
Invoices or draw requests from the contractor
A comparison to the original scope of work
Sometimes a third-party inspection

At Seller's Little Helpers, our weekly draw packages include all of this. We produce it every Friday as part of the standard process. You can forward it directly to your lender.

We've worked with enough hard money lenders to know what they need. Our documentation format is designed to get your draws approved fast.

The Numbers on a Real Deal

$200K purchase price. $55K rehab budget. Hard money lender funds 90% of purchase and 100% of rehab in escrow.

Deposit model:

Contractor wants $16,500 deposit (30%)
Lender won't cover it until work is done
You front $16,500 from your own cash
You carry that $16,500 for 3-4 weeks until enough work is complete for a lender draw
Your capital is tied up

Weekly draw model:

Week 1: $4,000 draw. You submit to lender.
Week 2: Lender releases Week 1 funds ($4,000). You pay Week 2 draw ($4,000) from your pocket while waiting for the release cycle.
Week 3 onward: Lender releases are funding contractor draws. Your out-of-pocket stays around $4,000-$8,000 at any time.

You just freed up $8,000-$12,000 in capital compared to the deposit model. On multiple simultaneous projects, that adds up fast.

What to Tell Your Lender

Most hard money lenders will work with weekly draws. Some prefer it because they can verify progress more frequently. When you set up the loan, tell your lender:

"My contractor works on weekly draws, no deposit"
"I'll submit draw requests weekly with photo documentation"
"Each draw covers one week of verified completed labor"

This is usually an easy conversation. Lenders like frequent verification. It protects their collateral.

Book a $150 scope visit at sellerslittlehelpers.com - our draw documentation is built for hard money lender compatibility. Call (708) 536-6700 or email info@sellerslittlehelpers.com.