The Scope of Work (SOW) is the proposed list of work and valuations that will be performed at the property. The SOW is used to determine the economic viability of the project. It is also used to guide the reimbursements during the draws processes.

Provide details that clarify the scope. For example; ‘Roof: $1,000’, we don’t know what you are doing to the roof. If you add, ‘Repair south east corner’, or ‘Overlay shingles over garage’, then we have a much clearer understanding and can conclude the assessment faster and get money to you faster. Also, be prepared to provide receipts and documentation when asked. The typical receipts you get in the course of the project are sufficient.

Soft costs are planning, engineering, and permitting expenses. These include Architectural and Engineering fees, drawings, surveys, filing fees and permit fees, for example.

A contingency line item helps accounts for unexpected expenses and it can also prevent the need to amend the SOW.

Yes. Demolition is the tearing down of building materials. Trash Hauling is the removal of debris. If you separate these two items, we can fully reimburse your demolition scope even if you still need a dumpster on site.

Be prepared to provide all drawings, documents, permits, and paid invoices for all soft costs. These are our only way to know that this work has been accomplished.

Yes. Be prepared to provide receipts for all items in the Scope of Work.

Contingency can account for up to 10% of the total renovation budget.

Yes. If an error was made in the original SOW, you can amend the scope of work accordingly. Keep in mind that the revised SOW must continue to support the After Repair Value indicated in the appraisal. If the ARV was derived with the understanding that you were updating the kitchen and baths, those items must remain in the revised SOW.

No. The construction holdback cannot change after the loan is funded.

Generally, we reimburse for materials and labor used for permanent improvements to the property and the process work such as excavation and shoring that may enable the permanent improvements to be installed. We reimburse for planning efforts as well.

Insurances, overhead and profit, temporary power, lawn maintenance, staging, draw fees, interest fees, closing fees, project management, furniture, decorative light fixtures, etc.