What To Expect At The Closing....
Hello all,
I am set to possibly close on a property. My questions are as follows:
How does your private lender handle draw disbursements at closing. Do they fund the cost of the materials so that your contractors can get to work asap?
Also, I am still debating on handy man or contractor. I have an excellent contractor that I've met with and I also have an excellent handyman that will be handling all of the interior work,i.e, carpentry and painting.
I am thinking of combining the two by letting my GC know that I prefer to use my handyman for interiors and let him orchestrate the subcontractors(HVAC,elec,roof,plumbing). Does this sound like a plan??
Thanks.
sounds to me like you are going to be getting money from a hard money lender - you'll want to pose all of these questions to your lender - not a group that doesn;t know about your particular transaction and the terms of your loan.
I've seen loans that require a contractor invoice for draw requests; and I've had closings where the entire rehab about is given to me as a check at the closing.
I did plan to speak w/ my lender...which I already have done since my post. I just wanted a general idea of what the norm was and see if he would be open to any ideas that I obtained from others here.
What Company are you going with for the Hard Money Loan. I am new to this, but the companies I am dealing with are all "pay after work is done and inspected" Not sure about you but this causes a bit of a strain on me. I try to look to the future when I can realize the profits.
Best of Luck,
Preston
My lender requires works to be done beforehand as well as do most lenders. My lender, however, does understand that a small deposit is required by most contractors and is open to that. Other than that though, it work completed according to draw schedule, and then the check gets cut. PM me for details.
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