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Catalyst Draw Procedures

Please take a moment to review Catalyst’s procedures regarding requesting repair draw funds, rehab work quality, and permitting. 

While we try to make the process and simple and streamlined as possible, we realize things can be confusing. Should you need further assistance after reviewing the procedures, please feel free to give us a call at 832.648.3626. One of our representatives will be happy to assist you! 

Amounts of Draws - Maximum & Minimum Requirements
  • The maximum amount you may draw is the hold-back amount on your loan. You may request the total hold back as long as the repairs on the house are 100% completed. (House must be ready for sale and completely cleaned.)
  • All draw requests must be for at least $5,000 or more.
  • No Partial Payments – the Scope of Work line item must be 100% complete.
  • No draws will be processed for inspection if there are any outstanding interest, tax or deferred origination point payments due.
  • 10% of the repair escrow is held back and not released until 100% of job completion. Draw payouts also consider the entire property condition and or progress and not just the submitted scope of work.
Scope of Work & Draw Disbursements
  • Draws are given after completion of any item on the Scope of Work. No money is given in advance for work not completed.
  • No money is given for change orders or for any work that was not on the Scope of Work that was signed at closing.
  • Draw funds are given for the combination of labor and materials on the Scope of Work. Funds cannot be given for materials only.
  • General Contractor fees will not be paid until the project is 100% complete.
  • If your loan pays off within five (5) business days of a draw request, the draw may be cancelled and any inspection fees incurred will still be due.
  • No Draws are paid out after the loan is paid off. Remaining unused draw funds with be refunded within approximately 10 business days of receiving payoff funds.
  • While Catalyst does not require permits on all projects, any job that must be or is permitted – each draw item that requires a city inspection approval must be approved by the city inspector before that item will be paid out.
  • Any project that is permitted and receives a violation or “red tag” from the city, will need to pass inspection and/ or receive a “green tag” from the city before any draw requests will be processed.
  • Final draw requests will not be processed unless all permits for the project have been closed.
Required Warranties
  • Foundation – Catalyst Funding must approve Foundation Contractor prior to work being started in order to receive reimbursement. Invoice/Receipt and Foundation Warranty from Contractor will be required after work has been completed (with description of what was done along with a drawing of where the piers were added).
  • Roof – Invoice/Receipt & Warranty/Certification, WPI8 Certificate on properties in the Coastal Counties from Contractor will be required after work has been completed.
  • Septic & Water Well Systems – Invoice/receipt and warranty information will be required after work has been completed.

Please note:

If you do not request a draw throughout the entire process, your unused draw funds will be released to you in approximately 10 business days after Catalyst receives payoff funds.  

Hard Money Tools Fix & Flip

To receive reimbursement

  1. Complete the work that is being requested.
  2. Submit a draw request through the borrower’s online portal.  Portal Login Link
  3. We will have an inspector inspect the work.
  4. Upon sign-off by the inspector, funds will be released within 3-5 business days of draw request submission. (This time-frame only applies to vacant properties accessible by lock-box in the major metro areas. Inaccessible, occupied or rural properties may experience longer funding times)
  5. If you request items for payment that are not actually completed this may delay the payment by at least a day.  
  6. On a final draw, 100% of the work must be complete and the house must be ready for sale/rental.


These fees are taken from the draw amount. No money up front is required.

$175.00 Per Draw – This fee will include: Processing the draw and inspector on-site verification.

Since 2020 Catalyst has waived all electronic fund transfer fees for draws.