Rehab draw delays are usually a documentation problem, not a money problem.
Draws move fastest when scope, milestones, and proof are aligned with inspections.
If your budget is vague, your draw request becomes a negotiation and your timeline slips.
A clean draw system uses milestone-based releases, clear photos, and consistent invoicing.
The goal is not more draws; the goal is fewer surprises and predictable releases.
Use the system below and your rehab funding becomes routine instead of stressful.
At a glance
- Milestones should match inspectable progress
- Line-item budgets reduce draw friction
- Photos before/after plus invoices speed approvals
- Change orders must be communicated immediately
- A contingency line prevents emergency cash crunches
- Clean draws protect timeline and holding costs
Build your draw schedule around milestones, not feelings
A good draw schedule is based on stages an inspector can verify. Example milestones:
- Demo complete
- Rough mechanicals complete (plumbing, electrical, HVAC [Heating, Ventilation, and Air Conditioning] as applicable)
- Drywall/paint complete
- Kitchens/baths installed
- Flooring/trim complete
- Final punch list complete
What to include in every draw request (the draw packet)
- Draw request form (or email summary)
- “Work completed” list tied to milestones
- Before and after photos for each area
- Invoices and receipts for major items
- Updated budget vs actuals (what’s spent, what remains)
The fastest way to stall your own draws
- Submitting “need 10k” with no milestone reference
- No photos or photos that don’t match the claimed progress
- Changing scope mid-stream without a documented change order
- Requesting draws before work is complete or verifiable
How to handle scope changes without chaos
Scope changes happen. The correct move is to document them:
- written change order
- updated budget line item
- updated timeline impact
- updated ARV [After Repair Value] rationale if the scope materially changes finishes or layout
Next step
Fix & flip program: https://ambitionlending.co/fix-flip-loans/
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/contact/
Frequently Asked Questions
What is a rehab draw?
A rehab draw is a staged release of renovation funds tied to completed work that can be verified through documentation and inspection.
Why do rehab draws get delayed?
Most delays come from vague scope, incomplete documentation, unclear milestone completion, or uncommunicated scope changes.
How can I make draws faster?
Use milestone-based draws, provide before/after photos, attach invoices, and keep an updated budget vs actuals.
Do I need inspections for every draw?
Requirements vary by deal and lender. Many draw processes use photos and/or inspections to verify completed work.
What if my rehab runs over budget?
Overruns typically require additional borrower funds or a revised scope. Communicate early and update the plan immediately.
Should I request more frequent smaller draws?
Not always. More draw events can create more inspection points and more admin friction. Milestone-based draws usually perform better.
Fix & Flip Loans: https://ambitionlending.co/fix-flip-loans/
Hard Money Loans: https://ambitionlending.co/hard-money-loans/
Contact: https://ambitionlending.co/contact/
