Streamlined Draw Process for Rehab and Construction Funds

Only after the property has closed AND funded, should rehab work begin…

Step 1: Commencement of Work & Contractor Payments

Work may only commence after the loan has closed and funded.  If ‘start” funds are required by contractors, Borrowers are responsible for paying those directly.

Step 2: Submitting Draw Request

Once the borrower is ready to be reimbursed for completed work, they can submit the Draw Request Form to the lender – available here. Please include property access information, such as the lockbox code, and provide a working phone number for the inspector’s call.

Step 3: Inspection Confirmation

The inspector will contact the borrower to arrange a convenient time and date for the inspection. It is important to ensure interior access to the property during the inspection. We recommend the borrower or project manager be present at the time of inspection.

Step 4: Verification and Approval

The inspector performs a thorough inspection to confirm that the items listed on the Draw Request Form have been completed. The inspection report is then sent to the lender for approval.

Step 5: Fund Disbursement

We compare the requested items with the actual work performed at the property. Once approved, funds are made available to the borrower through a check, ACH, or wire transfer (subject to a $25 fee). Typically, it takes 3-4 business days from the draw request to the borrower’s receipt of the funds.

Inspection Fees: The inspection fee, which may vary depending on the market and scope, will be deducted from the escrow rehab account. Borrowers can request multiple inspections as needed.

Please note that Bay Mountain Capital strictly releases funds only for work that has been completed and materials that are installed.

If you have any questions don’t hesitate to call us at 214-953-3188 Ext. 8 or email us at draws@baymountaincapital.com. We’re here to assist you throughout the draw process.