How construction draws actually work (and how we keep them on schedule)

Construction lending is, fundamentally, the practice of releasing money in pieces as work gets completed. The schedule is called the draw schedule, and it's built before the loan closes.

A typical draw cycle:

1. You submit a draw request, itemized by line item against the approved budget. 2. A third-party inspector visits the site to confirm the work claimed has actually been completed. 3. We release funds — usually wired within 24–48 hours of inspection approval.

Where deals go wrong:

- Inspectors don't show up. A weak lender's vendor list will leave you waiting two weeks for a site visit. We use a curated bench. - Budgets weren't scrubbed pre-close. Surprises mid-project mean change orders, re-underwriting, and stalled wires. For rehabs above $150K, we require a Pre-Cost Analysis up front. - Documentation is sloppy. Lien waivers, supplier invoices, and contractor sign-offs all need to be in order. Our team coordinates this directly with your GC.

Our draw process is the part of our service that experienced developers consistently single out. It's also the area where most hard money lenders quietly underperform.