How Rehab Draws Actually Work

Fix and Flip

The short version, then the substance.

The sequence. Complete a stage from the scope of work, request the draw, the lender inspects, the funds release. Repeat until the project is done. The rehab budget sits in reserve at closing, earning its release through finished work.

How to never wait on money. Request draws as stages near completion, not after the crew is standing idle. Keep photos current and the scope organized by stage. At Averlend, local inspections turn draw requests around in days because nobody is mailing reports across the country.

The cash flow reality. You front each stage and the draw reimburses it, so keep working capital for one stage of work on hand. Borrowers who plan that buffer never stall. Borrowers who do not, do.

The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.