Curious how folks here prefer their construction loan disbursements. Do you like getting a few big draws at major milestones (like after foundation, framing, etc.), or do you go for more frequent, smaller releases as each phase wraps up? I’ve heard some people swear by the “less is more” approach to keep things moving, but others say it’s easier to manage cash flow with more regular, smaller payments.
Personally, I found waiting for those big milestone inspections kinda stressful—like, what if something tiny holds up the whole next chunk? But then again, chasing down a bunch of small draws sounds like a paperwork headache. What’s worked best for you? Or maybe your lender just tells you how it’s gonna be and that’s that…
Big milestone draws always felt like a gamble to me—one hiccup and you’re stuck waiting, which isn’t fun when you’re paying subs who want their money yesterday. Smaller, more frequent payments seemed to keep everyone happier, but yeah, the paperwork can get ridiculous. I guess it’s a trade-off... I’d rather deal with extra forms than angry contractors, though.
I’d rather deal with extra forms than angry contractors, though.
I hear you on that, but man, sometimes the paperwork just feels endless. I get nervous about smaller payments because I worry about losing track—like, did we already pay for that delivery, or is that still pending? But then again, the idea of subs getting cranky waiting on a big milestone... yeah, not ideal either. Has anyone actually run into cash flow issues from doing lots of little draws? Or is that just me overthinking it?
Title: Big Chunks Or Little Payments—Which Actually Works Better?
Honestly, you’re not alone stressing about the paperwork. I’ve definitely lost track of a couple small payments before and had to dig through emails to double-check. It’s easy for things to slip through the cracks when you’re juggling a bunch of little draws. But on the flip side, waiting for big milestones can put a real strain on subs—especially the smaller crews. I think as long as you’ve got a decent tracking system (even just a shared spreadsheet), the little payments don’t have to be a nightmare. It’s a balancing act, for sure.
Title: Big Chunks Or Little Payments—Which Actually Works Better?
That’s a good point about subs getting squeezed if you’re waiting on a big milestone. I ran into that exact issue with my electrician—he was cool about it, but I could tell he was getting antsy. The smaller draws did mean more paperwork, but honestly, I’d rather deal with that than have a crew walk off because they’re waiting on cash. I just kept a running list in my notebook and double-checked every payment. Not fancy, but it worked.
