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 can a bad contractor really cost?

The total cost including lost deposit, recovery premium, extra holding costs, and delayed opportunity can reach $35,000-$42,000 or more on a single deal. Enough to wipe out an entire year of profits.

How do weekly draws limit my losses from a bad contractor?

Your maximum loss is one week of labor (around $4,000) instead of a $15,000+ deposit. Weekly reviews catch problems in Week 1 instead of Week 3+. The damage is contained before it compounds.

What should I do if my current contractor is underperforming?

Address it immediately. If you are on weekly draws, hold the draw and discuss corrections. If you are on deposits, document everything and consider whether cutting losses now prevents bigger losses later.

What is included in the $150 scope visit?

Full walkthrough, scope of work, cost breakdown, timeline, and weekly draw schedule with structural accountability built in to prevent the scenario described in this article.

Is it too late to switch to weekly draws on a current project?

If you haven't started yet, absolutely switch now. If you are mid-project on a deposit model, you can propose weekly draws for remaining payments. Any improvement in payment structure helps.

The Real Cost of a Bad Contractor

Let me walk you through the real math on a bad contractor. Not the headline number. The full, compounding, cascading cost that investors don't calculate until the damage is done.

The Scenario

You hired a contractor for a $52K rehab on a flip. Purchase price: $185K. ARV: $275K. Expected timeline: 10 weeks. Expected profit: $38K after all costs.

The contractor took a $15,600 deposit (30%). Things went sideways.

The Direct Losses

Lost deposit: $15,600 (contractor ghosted after Week 3)
Completed work value: $8,000 (3 weeks of partial work)
Net direct loss: $7,600

The Recovery Costs

You need to hire a new contractor to finish:

New contractor premium: New contractors charge 15-30% more to pick up someone else's project. Your remaining $36K scope now costs $42K-$47K.
Rework costs: $4,000. The new contractor finds issues with the previous work and needs to redo portions.
New scope visit/assessment: $500-$1,000 to evaluate what's been done and what remains.

Recovery cost over original budget: $10,000-$15,000

The Timeline Costs

Original timeline: 10 weeks
Time lost to bad contractor: 3 weeks
Finding a new contractor: 2-3 weeks
New contractor mobilization: 1 week
Rework time: 1 week
Remaining scope: 7-8 weeks
Actual total timeline: 14-16 weeks instead of 10

Extra holding costs at $800/week for 4-6 extra weeks: $3,200-$4,800

The Opportunity Cost

Your capital was supposed to be free in 14-16 weeks (10-week rehab + 4-6 weeks to sell). Now it's tied up for 20-24 weeks. That's 6-8 extra weeks where your capital isn't funding the next deal.

If your next deal would earn $30K, those 8 weeks represent roughly $15K in delayed income.

The Total

| Cost Category | Amount | |---|---| | Net lost deposit | $7,600 | | Recovery premium | $10,000-$15,000 | | Extra holding costs | $3,200-$4,800 | | Delayed opportunity | ~$15,000 (estimated) | | Total cost of bad contractor | $35,800-$42,400 |

Your expected profit on this deal was $38K. The bad contractor cost nearly wiped it out entirely. And this is a moderate scenario. I've seen worse.

How to Prevent This

The numbers above are almost entirely preventable:

Eliminate the deposit: Weekly draws cap your exposure at $4,000/week. That $7,600 loss becomes a $4,000 loss.

Detect problems in Week 1, not Week 3: Weekly reviews catch underperformance in the first week, not the third.

"If work stops, payment stops:" The contractor can't run up three weeks of partial work while you're waiting and hoping.

Detailed scope before starting: The new contractor doesn't need to assess the project from scratch. They have the scope document.

At Seller's Little Helpers, the maximum you can lose if everything goes wrong is one week of labor. Not $42,000. Not your entire year of profits. One week.

Book a $150 scope visit at sellerslittlehelpers.com - protect your profits with structural accountability. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

The Real Cost of a Bad Contractor: How One Rehab Can Wipe Out a Year of Profits