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Rehab Draw Schedule Calculator

Rehab lenders (hard money, private) release funds in draws tied to milestones rather than lump sum. Typical structure: demo, framing/structural, rough-ins, drywall, and finish, each with a % of budget and a retainage holdback. This calculator plans the draw schedule, retainage release, and cumulative cash-out-of-pocket at each stage.

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Total drawn before final retainage

$67,500

Retainage held until final

$7,500

Demo net draw

$10,125

Framing net draw

$16,875

Rough-ins net draw

$13,500

Drywall net draw

$10,125

Finish net draw

$16,875

Total inspection cost

$1,350

% allocated (should be 100)

100.0%

How the math works

On a $75K rehab budget with 10% retainage and 15/25/20/15/25 milestone split: net draws of $10,125 demo, $16,875 framing, $13,500 rough-ins, $10,125 drywall, $16,875 finish. $7,500 retainage held and released at final inspection.

Make sure milestone %s sum to 100. If you front-load too heavily (20%+ at demo), lenders often push back. Back-loaded schedules (30%+ at finish) align cash flow with completion risk but can strain contractor cash — negotiate sub payment terms accordingly.

How to Use

  1. Enter total rehab budget and borrower holdback requirement (common: 10% retainage).
  2. Enter % of budget released at each milestone — demo, framing, rough-ins, drywall, finish.
  3. Enter inspection cost per draw.
  4. See cumulative draw, net to contractor at each milestone, and final retainage release.

Frequently Asked Questions

What's a typical draw schedule?

5-draw standard: 10-15% at demo, 20-25% at framing/structural, 20-25% at rough-ins (MEP), 15-20% at drywall, 15-25% at finish. Final 10% retainage held until CO and punchlist sign-off. Smaller rehabs often use 3-draw: demo, mid, final.

Why retainage?

Protects lender against contractor walking off with 90% done and no motivation to finish punchlist. 10% retainage creates a strong incentive to complete. Released at final inspection + CO. Some lenders release 5% at framing CO and hold 5% to end.

How much does each inspection cost?

$150-$350 per draw. Ordered by the lender, paid by borrower. Budget 5-7 inspections per project. Some lenders do 'drive-by' inspections at $50-$100 for minor draws; full inspections for major milestones.

What delays a draw?

Missing permits, lien claims from subs, discrepancy between draw request and site work completed, no inspection. Lenders generally fund within 48-72 hours of clean inspection. Delays are almost always borrower-side documentation issues.

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