Repair Draw

Now that we’ve covered what a scope of work is, the next process in the scope of work is the repair draw process, which allows The Hard Money Co. to inspect the work that you have completed and then provide you with payment for that completed work. As I told you already, The Hard Money Co provides you with 100% of the repair capital needed subject to your approval of your scope of work not to exceed your 65% after repair value.

What is the repair draw process and how does it work? The repair draw process is on our website (https://thehardmoneyco.com) and that is the process to which you as the borrower request money from us to be reimbursed for work that is completed.

To be clear, we only pay or reimburse you for 100% completed. 99.9%, 84.6%, 10% completed work does not get reimbursed. Please understand that the details of your repair draw request should mirror and match your scope of work to which you’re asking us to reimburse you for. So for example, if you’ve asked us on your scope of work to reimburse you for which included your gutters and your downspouts. And we arrive and the roof is on, but the gutter and the downspouts are not on. That is not 100% completed, and that request will not be re, will not be reimbursed until the gutters and the downspouts are installed. If on your scope of work you have broken out those items into two separate items, which would’ve been a roof and gutter and down spouts, and the roof is.

and you’ve requested just the roof to match your scope of work For completion, we will happily reimburse you for the roof that is completed. And subsequent to our next inspection, we will pay you for the gutters and down spots should those be done and requested in your repair draw process.

So how does the repair draw process work? Well, the repair draw process starts with the scope of work as we’ve already. And concludes with us visiting the property and reimbursing you for the work done. In between there, there’s several processes that you as the borrower must be responsible for. First and foremost, it is very important that you submit a draw request on TheHardMoneyCo.com

Once the draw request is submitted, that triggers an internal process to which we will send an internal representative to come out and inspect the property to which you have indicated work has been complete. Our inspector will be out there within 24 to 48 hours of your request. And upon successfully viewing or seeing the completed work, you will have the funds in your account 24 to 48 hours after that.

So subsequent to your timing and our timing, the process can take as long as four days, but traditionally it takes somewhere between one and three days for the process to get done, but expect a long time frame. Um, but also understand that it is our mission to get you the money as fast as. So we ask that you follow our processes to get you there.

The process works like this. You submit a draw request which matches your scope of work. We receive it. We will contact you and gain access to the property to which you are requesting work to be done. Once that work has been verified by an internal inspector of ours, we will then initiate an ACH payment into your bank account.

You have established with us and funds will be in your account the next morning. It’s that. , but it’s as critical, as simple as that makes it for you to be a participant in the simplicity of it by making sure that the work is 100% completed prior to you requesting us to come out.

Let’s cover a few scenarios that we hear every day during the repair draw process. As I’ve told you, it is our mission to support you in your real estate. , our risk exposure continues to grow as work is not completed on a property. And so we protect the repair draw process with great, uh, discipline and we hope you understand why we do that.

A couple scenarios that happen all of the time that we want to discuss with you, what happens when I order Windows and three of ’em are not in and they’re back ordered for two weeks, Unfortunately, until the windows are all in and a hundred percent installed, we unfortunately cannot pay you for that work to be.

While that is a pain, and I understand it as an investor, it is a policy of ours and we hope you understand. Additionally, it is critical underneath, um, our scope of work that matches the repair draw process that you detail everything. So for example, what happens if I submit kitchen? But we all know that granite countertops take an extra two weeks to be ordered after they’re measured and those aren’t installed.

But I only put kitchen remodel under my scope of. Well, unfortunately, until that kitchen remodel is a hundred percent complete, which includes grand and countertops, we can’t pay you. So if you wanted to make sure your scope of work was done in the beginning with more detail, that’s fine. Or we would have to wait until the kitchen is 100% complete and then we will be able to re reimburse you that money.

Is there a fee for The Hard Money Co. to do a repair? We get that question all the time, and the answer is very simply, yes, there’s a $200 fee per request for repair draws. Thank you for watching our video on scope of work and the repair draw process. We wish you the best of luck in your rehabbing.

If you have any questions, please reach out to myself, Sarah, Danny, or any member of our team, uh, to get a better understanding of the repair process. We look forward to working with you. We look forward to being your real estate and happy investing.