Draw

Draw is a partial release of construction or rehab funds against completed work. The lender holds the rehab portion of the loan in a rehab holdback account; draws release on a predetermined schedule (typically 3-5 draws across project life) after inspector verification of completed line items. Common cadence: 25/25/25/25 or front-loaded for foundation and framing work. Draw delays — most often due to inspection scheduling — extend holding period and erode flip margin.