Key Takeaways
- Draw cycles take 5-10 business days from request to disbursement; plan cash flow accordingly.
- Batch draw requests around major project phases to minimize inspections and administrative cycles.
- Collect lien waivers and photograph completed work before submitting draw requests.
- The 10% holdback requires investors to fund the final phase out of pocket until project completion.
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Test Your Knowledge
1.What is the standard process for requesting a construction draw?
2.Why do lenders require lien waivers with each draw request?
3.What is a holdback reserve in the context of construction draws?