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 much do holding costs add up to weekly?

Typically $600-$1,200 per week depending on your loan amount, interest rate, and property expenses. On a typical flip with hard money, expect $700-$800 per week in combined holding costs.

How do slow contractors affect my overall return?

Holding costs from delays often exceed the contractor's profit margin on the labor. An 8-week delay can cost $6,000+ in direct holding costs plus market risk and opportunity cost.

How do weekly draws prevent timeline delays?

The contractor's weekly income depends on weekly progress. Slow week means a smaller check. No work means no check. This creates natural schedule pressure every single week.

What is included in the $150 scope visit?

Full walkthrough, scope of work, cost breakdown, realistic timeline with weekly milestones, and weekly draw schedule. You can run your holding cost math before committing.

How do you handle timeline slippage on your projects?

We flag it immediately. If we are falling behind the weekly milestone, we communicate why and what we are doing about it in that week's draw request. No surprises.

Holding Costs Are Killing Your Flip: Slow Contractors Cost More

Your contractor's labor bill is $35,000. The delay he caused cost you $12,000 in holding costs. But nobody sends you an invoice for holding costs. They just silently eat your profit.

Let me show you the math that most investors don't run until it's too late.

The Real Cost of Every Extra Week

On a typical flip with a hard money loan:

| Cost | Weekly Amount | |---|---| | Hard money interest (12% on $200K) | $461 | | Property insurance | $65 | | Utilities (electric, water, gas) | $75 | | Property taxes | $115 | | Lawn/snow maintenance | $50 | | Total weekly holding cost | $766 |

That's $766 every week the project runs. A 6-week delay costs $4,596. A 10-week delay costs $7,660.

The Compound Effect

But it gets worse. Delays don't just add holding costs. They add:

Seasonal risk. A project that should have listed in April but lists in July faces different market conditions. Summer competition. Back-to-school buyers who've already bought.

Market risk. In a cooling market, every extra month can mean a lower sale price. On a $280K flip, even a 2% market dip from delay is $5,600.

Opportunity cost. Your capital tied up in this deal can't fund the next one. If your next deal would earn $30K and you're 8 weeks late because of this one, that's 8 weeks of delayed profit on the next deal too.

Add it all up. A contractor who finishes 8 weeks late on a $35,000 labor bill might cost you:

Holding costs: $6,128
Market depreciation: $5,600 (in a cooling market)
Opportunity cost: hard to quantify, but real

The delay cost more than the contractor's labor margin.

Why Contractors Are Slow

It's not always laziness. Common reasons:

They took too many jobs. Your project competes with 3-4 others for crew time.
Poor material planning. Materials not ordered in advance. Crew sits idle waiting.
No schedule pressure. With a deposit model, they've already been paid. Where's the urgency?
Subcontractor scheduling. Plumber can't come until next week. Electrician is booked. Everything cascades.

How Weekly Draws Fix This

Weekly draws create financial schedule pressure. The contractor's income this week depends on this week's progress. Slow week, smaller check. No-show week, no check.

This incentive alone moves projects faster than any amount of phone calls or angry texts.

Weekly draws also surface timeline problems immediately. If Week 3 deliverables weren't completed, you know Friday. You can intervene, adjust, or escalate before the delay compounds.

At Seller's Little Helpers, we track timeline vs. actual on every weekly draw. If we're falling behind, we tell you and what we're doing about it. No surprises at Week 10 that the project needs 4 more weeks.

The $150 Scope Visit Advantage

Our scope visit produces a timeline with weekly milestones. Before work starts, you can see whether the projected timeline works for your deal math. If holding costs at a 12-week timeline kill the deal, you know that before committing.

Book a $150 scope visit at sellerslittlehelpers.com - get a realistic timeline before you commit, not an optimistic guess. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

Holding Costs Are Killing Your Flip: How Slow Contractors Cost More Than Their Labor