Guide
The Draw Process
How rehab and construction funds are released on a Cedar Top loan.
On fix & flip and construction loans, the rehab portion of your loan is placed into an escrow account at the time of funding. It is released in draws as the construction improvements are completed and inspected. Once the work has been completed, an inspection will be done on the property and the draw will be released.
How a draw works
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Funds held in escrow
The rehab portion of your loan is placed into an escrow account at the time of funding.
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Complete the work
You complete the construction improvements on the property.
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Inspection
Once the construction improvements have been completed, an inspection will be done on the property.
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Draw released
After inspection, the draw will be released. We typically receive an inspection report within 48 hours and disperse the funds the following day.
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Repeat through completion
The cycle repeats until the project is complete and the final draw is released.
Tips for fast draws
- Keep your scope of work and budget itemized and up to date.
- Document completed work with clear, dated photos.
- Request draws by completed phase rather than piecemeal.
- Coordinate timing with your crew so inspections aren’t waiting on unfinished work.