What is a Draw Request?
Once you close your fix and flip loan, one of the next steps is understanding what draw requests are and how our process works.
How Does a Draw Request Work?
Anytime we disburse money to a borrower, it is our due diligence to ensure the project is progressing as indicated. A third-party inspector is employed to assess a project and provide us with a comprehensive report outlining the percentage complete for each line item in a borrower’s budget. Below are the specific steps to take when submitting a draw request to us.
- Request a disbursement in writing by emailing firstname.lastname@example.org.
- Specify which items on the schedule are to be inspected and how much money you are requesting.
- Provide receipts, contracts, or invoices for labor and materials for which you have paid.
- Provide wiring instructions. We fund disbursement requests ONLY by wire or by check. Note: your financial institution’s wiring instructions may differ from the routing and account number on your check. It is your responsibility to ensure accurate information is provided for purposes of funding.
- Walnut Street Finance schedules a third-party inspection of the property.
- Inspector visits the property to assess project progress and provides photos and report within 24 hours of inspection.
- Our Loan Committee reviews the inspection report and any supportive documentation provided by the borrower.
- Our Loan Committee approves final amount of funds. Walnut Street Finance then wires funds to borrower.
- Repeat this process for subsequent draws.
Connecting You to What You Need
Our draw request process has a high level of human interaction, resulting in less confusion and better collaboration in funding projects as they progress. We aim to make construction funds available within 5 days of receiving the draw request--often sooner--and we work in direct collaboration with our borrowers to re-allot items in order to cover funds needed as budgets often change as projects move forward. That's the human element of servicing and one of the reasons Walnut Street Finance is different than other private money lenders!
If you're still deciding on a lender for your next project, click below to find out more about how we're different than traditional banks, with unparalleled industry experience and the flexibility and speed to get your next project moving fast.