Why Your Scope of Work Can Make or Break the Deal
When you apply for a loan with The Hard Money Co., your scope of work is a crucial part of closing your deal. It’s not just a formality. It tells us whether you’ve put real thought into the project, if you understand what it takes to succeed, and whether your plan lines up with your numbers. A vague or sloppy scope signals problems ahead. A clear and specific one builds confidence, keeps your project moving, and helps you get reimbursed faster once the work begins.
People need to understand that your Scope of Work matters, and will impact the remainder of your project. Let’s discuss why.
Do You Actually Have a Plan?
A clear, detailed scope of work shows us that you’ve taken the time to think through your project. It proves that you understand what needs to be done, how it will be done, and how each piece of the renovation fits into the overall vision. If your scope is vague or incomplete, it signals that you haven’t fully prepared. That’s a problem, not just for us as a lender, but for you as an investor trying to execute a profitable deal.
The scope is your roadmap. It keeps your budget grounded, your contractors accountable, and your timeline realistic. Without a strong plan, you’re more likely to run into missed deadlines, surprise costs, and frustrating delays. A good project starts with a good plan, and the scope is where that plan begins.
Your Scope Has to Match Your ARV
If you’re telling us the property will be worth $300,000 when the work is done, your scope needs to show how you’re getting there. You can’t expect a top-tier appraisal with a bottom-tier rehab. The finishes, layout, and improvements need to support the value you’re projecting. If there’s a gap between your proposed work and your ARV, we’re going to question the deal.
This doesn’t mean you need to overspend. It means your renovation plan needs to align with the comps you’re using. Are you adding the same features? Are you updating the right areas? Your scope should clearly show how you plan to bring the property to the level of its expected value. Without that, the numbers just don’t hold up.
We’re Here to Help You Get It Right
If your scope doesn’t line up with your ARV, your budget, or your overall plan, we’ll point it out. That doesn’t mean your deal is dead. It just means it needs work. Our team has reviewed thousands of renovation plans, and we can quickly spot where things may fall short.
One of the advantages of working with The Hard Money Co. is that you’re not left guessing. We want to fund good projects, and that means helping investors get their scopes in shape. If your numbers are solid and your plan makes sense, we’ll help you get across the finish line. If not, we’ll show you what needs to be fixed.
Specificity Gets You Paid
The more detailed your scope is, the easier it is to get reimbursed. At The Hard Money Co., we don’t release all your repair funds up front. We provide $3,000 at closing to help you get started, but after that, we reimburse only for work that is fully complete. This is why the way you write your scope directly impacts your cash flow during the project.
If your scope says “full kitchen renovation,” you won’t be reimbursed until everything in that kitchen is done. But if you break it into specific line items like cabinets, appliances, flooring, and backsplash, you can get reimbursed as each piece is completed. That gives you more flexibility and helps you pay your contractors on time. A clear, itemized scope keeps your project moving and your funding consistent.
Show Us the Plan, and We’ll Fund the Project
A strong scope of work isn’t just a form. It’s the foundation of a successful deal. It shows that you’ve thought through the renovation, understand the costs, and have a clear path to the value you’re targeting. It also helps you get reimbursed faster and keeps your project running smoothly.
Whether you’re just getting started or already have experience, The Hard Money Co. is here to help you close. Submit your application today and let’s get your project moving.
