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 draws improve cash flow?

You eliminate large upfront deposits that lock up capital. Instead, you pay a predictable weekly amount for completed work. This frees up tens of thousands in capital across a portfolio and makes cash flow planning actually possible.

How do weekly draws work with hard money lenders?

Weekly contractor draws align with lender rehab fund releases. Your contractor completes work, you submit documentation to the lender, the lender releases funds. Your out-of-pocket stays minimal.

How much capital do weekly draws free up?

On a typical 3-project portfolio with $50K rehabs each, switching from 30% deposits to weekly draws frees up about $27,000-$42,000 in capital that would otherwise be locked in contractor deposits.

What is included in the $150 scope visit?

Full walkthrough, scope of work, cost breakdown, timeline, and weekly draw schedule. You can project your exact cash flow needs before committing to the project.

What if I need to pause a project for cash flow reasons?

If work stops, payment stops. Weekly draws give you the flexibility to manage cash flow across your portfolio without being locked into deposits you can't recover.

How Weekly Payments Improve Fix-and-Flip Cash Flow

Cash flow kills more investors than bad deals. You can find great properties all day, but if your cash is locked up in contractor deposits across three projects, you can't close on the fourth one that just hit your inbox.

Weekly draws fix this. Let me show you how.

The Cash Flow Problem With Deposits

You're running three flips simultaneously. Each has a $50K rehab budget. Under the deposit model:

Project A deposit (30%): $15,000
Project B deposit (30%): $15,000
Project C deposit (30%): $15,000
Total capital locked in deposits: $45,000

That $45,000 is sitting in contractor bank accounts doing nothing for you. It's not earning returns. It's not funding another deal. It's creating risk.

Plus, you have $45,000 in milestone payments coming due at unpredictable intervals. You might need $25,000 on Tuesday for Project A's second milestone and $12,500 on Thursday for Project B's. Cash flow planning is a nightmare.

The Cash Flow Fix With Weekly Draws

Same three projects, weekly draws at $4,000/week each:

Week 1 total: $12,000 (3 x $4,000)
Week 2 total: $12,000
Week 3 total: $12,000

Smooth, predictable, $12,000/week for exactly the work being done. No lumpy milestone payments. No $45,000 locked in deposits. And if any project pauses, that weekly spend drops immediately.

The Capital Freed Up

Look at the difference over the first month:

Deposit model: $45,000 out on Day 1 plus another $30,000-$45,000 in milestone payments through month 1. Total out: $75,000-$90,000.

Weekly draw model: $12,000/week x 4 weeks = $48,000. Total out: $48,000. All for verified completed work.

That's $27,000-$42,000 more capital available for deals, marketing, or reserves. On an annualized basis across a portfolio, this capital efficiency compounds significantly.

Matching Cash Flow to Hard Money Draws

If you're using hard money, this matters even more. Most hard money lenders release rehab funds in draws tied to completed work. Weekly draws from your contractor align perfectly with lender draws.

Your contractor completes a week of work. You submit the draw documentation to your lender. The lender releases funds. You pay the contractor. Your out-of-pocket on the rehab stays minimal because the lender's releases keep pace with weekly draws.

With deposits, you're fronting $15,000+ out of pocket that the lender won't reimburse until work is verified. That's capital you have to carry.

The Predictability Factor

As an investor, you should be able to project your cash needs 4-8 weeks out with reasonable accuracy. Weekly draws make this possible:

You know your weekly rehab spend: $4,000/project x number of active projects
You know when draws are due: every Friday
You know the duration: scope timeline tells you how many weeks
You know when it stops: when the project is complete

Try doing that with milestone payments where the timing depends on when the contractor decides to hit the next milestone.

What Smart Investors Do With the Freed Capital

The capital you free up by eliminating deposits can be deployed:

Fund another acquisition. $45,000 in freed deposit capital could be the down payment or earnest money on your next deal.
Build reserves. Cash reserves protect you from unexpected expenses across your portfolio.
Negotiate better terms. More available cash means you can close faster, which gets you better purchase prices.

The weekly draw model isn't just a contractor payment method. It's a capital management strategy.

Book a $150 scope visit at sellerslittlehelpers.com - see how weekly draws improve your cash flow on the next project. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

How Weekly Payments Improve Your Cash Flow on Fix-and-Flip Projects