Fairfield Financial Services, Inc. - Private Money Loans, Lending & Borrowing

Draw process for rehab and construction loans

Clay Sparkman

We plan to do as many rehab and construction loans as we can this year. We see great potential in that area. Builders are under-building (by a substantial number), and this is mostly because banks haven’t recovered to the point where they aren’t comfortable doing construction style lending–and thus there aren’t many options for those looking to make money, through value added, in the real estate market.  Unless, that is, you consider private money.

We are frequently asked how our draw process works. I have included a copy of our Draw Request Submission Requirements document below.

One final note: If you’d like a sample copy of our Budget Matrix, please send me an e-mail requesting it. I tired to get it formatted correctly for this blog post, and it just didn’t want to go.


You are entering into a loan that contains a construction disbursement account.  As the project progresses, Fairfield Financial may disburse funds on work that is completed.  In order to request disbursements, a draw request must be submitted to our office.  There is a $150 Draw Processing Fee for every draw you submit.  You may submit as many draw requests as you wish.  Each time you wish to submit a draw request, please follow the requirements listed below:

Cover page / Instructions:

For each disbursement item:

  • Description of work completed
  • The disbursement category (allocated from budget)
  • Total amount of disbursement
  • Instructions for payment/reimbursement: to whom, how much, invoice numbers (if appropriate), and how to deliver payment (including address)
  • Final total of all items
  • Authorized signature


Include photos (digital photos, or photos via mail) of all work that is complete.  For example, for flooring work, provide photos of the flooring in all rooms where it has been completed.  Please label each photo with a detailed description.

Updated Budget / Draw Record:

From the original budget that was approved when the loan closed, submit an ongoing budget and draw record that compares each budgeted amount to actual expenses, a draw history, and completion status.  Please use the following spreadsheet example.  Fairfield will provide a template (MS Excel or MS Word) upon request.

If expenditures do not meet budget expectations:

For every item that is either over or under budget, please provide an explanation and submit a proposal for a budget revision

Copies for Payment / Reimbursement:

  • If paying vender directly, a copy of the invoice
  • If reimbursement to you is needed, evidence of payment (a copy of the cancelled check, credit card receipt, or the invoice marked “paid” and signed by the vender)

Email, Fax, or Mail:

Please send your request one of three ways: e-mail, fax, or regular mail.

NOTE:  From the time that all required items have been received and deemed adequate, please allow up to 3 working days for draw request approvals and disbursement of funds.  Disbursements are only given when project item is completed (some exceptions include permits, etc.) For a copy of this document and examples, please visit our website at http://www.privatemoneysource.com.

– Clay (clay@privatemoneysource.com, 503-476-2909)

Clay is Vice President of Fairfield Financial, a primary source for private money since 1964.  Fairfield is currently targeting loans in OR, WA, AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX.  To submit a loan to Fairfield for consideration: http://www.privatemoneysource.com/loanproposal.php

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