Draw Process for Rehab & Construction Loans by Pelorus Equity Group

– Regarding the draw process, that’s one of the reasons
that we try to focus on people coming to Pelorus is because
it’s one of the most, it’s not just closing the loan, that’s just the first step of the loan. Then you have to work with that lender on a weekly or monthly basis as the draws are being processed, so for
us, we use a third party. That third party that we’re
using right now is ProBuild, which is owned by Dixie Line Lumber. And so what would happen
is that the borrower would submit the draw
request to ProBuild online, and they submit the voucher, the invoices, and the lien releases. That draw is typically processed
by them within 24 hours. That draw comes out to
us, and at that point, we order the inspection report. That inspection report
is typically ordered and produced within 24 hours, so we usually have a complete draw request ready for approval within
as little as 48 hours. And with ProBuild, they’re able to ACH out the payments to everybody and get em out to em the
same day, if it’s by 2:00. So we really focus on
trying to keep the cashflow and the money moving
as quickly as possible, and a lot of lenders,
that time, it could be three to five days or seven
days and those start adding up. When you have a project
that’s been a year long, and there’s two or three draws a month, that could be as many as 36 draws, and if you’ve got an extra
three days on every one, your project just got horrendously
longer, months longer. And so you’ve gotta
factor those in as costs. That’s three more months of interest costs that you may have, and you
may have missed the market. So, we think that this is something that most other lenders don’t
focus on as much as we do, and we try to always
expedite that process, and make sure that we’re moving on that as quickly as possible. (dramatic music)

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