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 labor draws protect my investment?

Your risk is capped at one week of labor ($3,500-$5,000). You review completed work every Friday and only pay for verified progress. No deposit. No overpaying ahead of actual completion.

Are milestone payments ever appropriate for investors?

They can work when you have a long relationship with a contractor (10+ projects) or on small projects under $10K. For most rehabs, weekly draws give you significantly better protection.

Do hard money lenders work with weekly draw schedules?

Many actually prefer them because they can verify progress more often. Our weekly draw documentation meets most lender requirements for fund releases.

What is included in the $150 scope visit?

Complete property walkthrough, detailed scope of work, line-item cost breakdown, timeline projection, and a custom weekly draw schedule showing exactly how payments flow through your project.

What happens if work quality doesn't meet standards during a weekly review?

The draw gets held until corrections are made. You have real leverage every single week, not just at vague milestone checkpoints.

Weekly Labor Draws vs. Milestone Payments for Real Estate Investors

Every investor eventually asks the same question: what's the best way to pay a contractor? The two main options are milestone payments and weekly labor draws. Both sound reasonable on paper. In practice, one consistently wins.

How Milestone Payments Work

Milestone payments break your project into phases. You pay a percentage at each one:

30% at signing (deposit)
25% at rough-in completion
25% at drywall and finishes
20% at final completion

The theory is sound. Tie payments to progress. The problem is execution. "Rough-in completion" is subjective. Is it 80% done? 95%? Who decides? Usually the contractor tells you it's done, you're not qualified to verify the rough plumbing behind the drywall, and you cut the check because the project needs to keep moving.

How Weekly Draws Work

Simpler. Every Friday, you review what work was completed that week. If the work matches the weekly plan, you release the draw (typically $3,500-$5,000 for a standard rehab crew). If it doesn't, you hold the draw until it does.

No deposit. Materials purchased separately. The draw covers labor only.

Head-to-Head Comparison

Maximum capital at risk:

Milestone: $15,000-$25,000 (that initial deposit)
Weekly draw: $3,500-$5,000 (one week of labor)

Time to detect a problem:

Milestone: 4-8 weeks (problems hide between milestones)
Weekly draw: 5 business days (you know by Friday if the week was productive)

Leverage to correct course:

Milestone: Low. They already have your money.
Weekly draw: High. Next week's payment depends on this week's work.

Cash flow predictability:

Milestone: Lumpy. Large payments at irregular intervals.
Weekly draw: Smooth. Same amount every week that work happens.

Contractor incentive alignment:

Milestone: Front-loaded. Big payday at signing, weaker incentive to finish strong.
Weekly draw: Constant. Equal motivation every single week.

The "80% Done" Trap

Here's what actually happens with milestones on a rehab. The contractor hits what they call "rough-in complete" and requests the second draw. You visit the site. Framing looks done. Electrical looks roughed in. But is the plumbing actually right behind those walls? Are the HVAC ducts properly routed?

You're not an expert in every trade. So you approve the milestone because the project looks like it's progressing. Three months later, the plumber comes back for trim-out and finds the rough-in wasn't done right. Now you're paying to redo work you already paid for.

With weekly draws, you're reviewing smaller chunks. "This week the crew framed the master bedroom and bathroom" is easy to verify. "Rough-in is complete" is not.

Real Numbers on a $50K Rehab

Milestone scenario:

Deposit: $15,000 (30%)
Rough-in: $12,500 (25%)
Finishes: $12,500 (25%)
Final: $10,000 (20%)

By the time you're at "finishes," you've paid $27,500 for what might be $20,000 of actual completed work. That's $7,500 of overpayment working against you.

Weekly draw scenario:

Weeks 1-8: $4,000/week = $32,000 labor
Materials: $18,000 (purchased by you)
Total: $50,000

At any point, you've paid exactly what's been completed. No overpayment. No underpayment. Just aligned progress and payment.

When Milestones Make Sense

Two situations:

You've worked with this exact contractor on 10+ projects and trust is fully established
The project is very small (under $10K) where weekly tracking overhead doesn't justify itself

For everything else, weekly draws win. Especially if you're scaling, working with a new contractor, or running multiple projects.

The Commercial Construction Standard

Here's something most residential investors don't know. Commercial construction has used weekly or biweekly draw schedules for decades. They call it "progress billing" and it's standard on every commercial project in America.

Commercial developers figured out a long time ago that tying payment to verified progress is the only way to manage construction risk at scale. The residential world just hasn't caught up.

At Seller's Little Helpers, we built our entire model around weekly draws because investors deserve the same protections that commercial developers have had for years. No deposits, no milestone games. Pay for what you see, every week.

Book a $150 scope visit at sellerslittlehelpers.com - we'll show you exactly what a weekly draw schedule looks like for your specific project. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

Weekly Labor Draws vs. Milestone Payments: Which Actually Protects Investors?