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.

Is the total cost the same with weekly draws?

Yes. The total project cost is identical. The difference is the payment timing and risk profile. You pay the same amount over the same timeline, but in weekly verified increments instead of large lumps.

What is the overpayment gap?

The overpayment gap is the difference between what you have paid and what the work is actually worth at any point in the project. Traditional draw schedules create large overpayment gaps. Weekly draws eliminate them.

How do you determine the weekly draw amount?

Based on crew size, project scope, and weekly work plan. A standard crew on a full rehab runs $3,500-$5,000 per week. The specific amount is set during scope planning before work begins.

What is included in the $150 scope visit?

Property walkthrough, scope of work, cost breakdown, timeline, and a week-by-week draw schedule like the one shown in this article, customized to your project.

Can I adjust the draw if work was lighter than planned?

Yes. If the crew has a partial week, the draw reflects actual work completed. You only pay for what got done.

Weekly Labor Draw vs. Traditional Draw Schedule

Numbers don't lie and they don't have opinions. Let me run both payment models on the same $52,000 rehab and let you decide which one you'd choose.

The Project

1,400 sqft single family
Full rehab: demo, new kitchen, 2 bath remodels, flooring throughout, paint, new HVAC
Total budget: $52,000 ($33,000 labor + $19,000 materials)
Planned timeline: 9 weeks

Traditional 4-Draw Schedule

| Draw | Amount | When | Cumulative Paid | Work Verified? | |---|---|---|---|---| | Deposit | $15,600 (30%) | Day 1 | $15,600 | No work done yet | | Draw 2 | $13,000 (25%) | Week 4 | $28,600 | Rough-in "complete" | | Draw 3 | $13,000 (25%) | Week 7 | $41,600 | Finishes "in progress" | | Final | $10,400 (20%) | Week 10 | $52,000 | Project "complete" |

The problems:

$15,600 at risk before day 1
Draw 2 triggered by subjective "rough-in complete" assessment
$28,600 paid by Week 4, but only ~$22,000 of work is actually done
You're overpaying relative to progress from the first check

Weekly Labor Draw Schedule

| Week | Draw Amount | Cumulative Paid | Work That Week | |---|---|---|---| | 1 | $4,000 | $4,000 | Demo, dumpster, rough start | | 2 | $4,000 | $8,000 | Framing, rough electrical | | 3 | $3,500 | $11,500 | Plumbing rough-in | | 4 | $4,000 | $15,500 | HVAC, insulation | | 5 | $3,500 | $19,000 | Drywall hang and finish | | 6 | $4,000 | $23,000 | Flooring, kitchen cabinets | | 7 | $4,000 | $27,000 | Tile, countertops, paint start | | 8 | $3,500 | $30,500 | Paint finish, fixtures | | 9 | $2,500 | $33,000 | Punch list, final details |

Materials: $19,000 purchased separately by investor throughout project.

What's different:

$0 at risk on Day 0
By Week 4, you've paid $15,500 for $15,500 of verified work (vs. $28,600 in the traditional model)
Every dollar paid matches a verified week of completed work
If something goes wrong at any point, your max loss is $4,000

The Risk Window Comparison

At Week 4, if your contractor disappeared:

Traditional model: You've paid $28,600. Maybe $22,000 of work is done. You just lost $6,600 and need to hire someone new.
Weekly draw model: You've paid $15,500 for $15,500 of completed, verified work. You lost nothing. Hire someone new and pick up where this crew left off.

The Overpayment Gap

The traditional model creates an "overpayment gap" where you've paid more than the work is worth at every point except the very end (if everything goes perfectly).

| Point in Project | Traditional Total Paid | Actual Work Value | Overpayment | Weekly Draw Total Paid | |---|---|---|---|---| | Day 1 | $15,600 | $0 | $15,600 | $0 | | Week 4 | $28,600 | ~$22,000 | ~$6,600 | $15,500 | | Week 7 | $41,600 | ~$36,000 | ~$5,600 | $27,000 | | Week 9 | $52,000 | $52,000 | $0 | $52,000 |

The weekly draw model never has an overpayment gap because you never pay ahead of verified work.

What Happens When Things Go Wrong

Things go wrong on rehabs. That's not pessimism, it's experience. The question is how much it costs you when they do.

Scenario: Contractor quality issue discovered at Week 5

Traditional model: You've paid $28,600. Contractor disputes the quality issue. You're arguing over money that's already been paid. Your leverage is the remaining $23,400 in future draws. The contractor already has more than half your money.

Weekly draw model: You've paid $19,000 for 5 weeks of work. You hold the Week 5 draw until the issue is fixed. The contractor has earned exactly what they've been paid. Your leverage is intact because every future dollar depends on current performance.

The Verdict

Same project. Same scope. Same total cost. But the weekly draw model:

Eliminates the $15,600 deposit risk
Closes the overpayment gap to zero
Gives you leverage at every stage
Lets you detect problems in 5 days instead of 5 weeks

At Seller's Little Helpers, every project runs on this exact model. We publish the draw schedule before work starts so you know what every Friday looks like before Monday arrives.

Book a $150 scope visit at sellerslittlehelpers.com - get a real draw schedule for your next project with zero deposit and weekly accountability. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

Weekly Labor Draw vs. Traditional Draw Schedule: A Real Numbers Comparison