Catalyst Draw Procedures

Amount of Draws:

We try to make the process as simple and streamlined as possible. Should you need further assistance after reviewing the steps below please feel free to give us a call. One of our representatives will be happy to assist you.

  • 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)
  • Draws are given after completion of any item on the Rehab Summary. 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 original Rehab Summary or Contractor Bid.
  • General Contractor fees will not be paid until the project is 100% complete.
  • Repairs are given for the combination of Labor and Materials and cannot be given for materials only. We only pay on completed work.
  • 10% of the repair escrow is held back and not released until 100% of job completion. Draw payouts also consider the entire property condition/ progress and not just the submitted scope of work.
  • All draw requests must be for at least $5,000 or more.
  • Permits – On any job that has to 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.
  • While Catalyst Funding does not require permits on all projects, any project this is permitted or 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.
  • No draws will be processed for inspection if there are any outstanding interest payments due.
  • 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.

Please note:

If you do not request a draw throughout the entire process, your unused draw funds will be released to you roughly 7-10 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. Inaccessible or occupied 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 & Inspector on-site verification.

$25.00 Bank Service Fee – This is for ACH requests. A check may also be prepared at no cost.