The reimbursement is the money that is paid back to borrower out of the rehab escrow funds for repayment of rehab expense paid to the contractor for the work that was completed and paid for.
Pay the contractor’s their initial starting funds. (Down payment) When they get to their 1st milestone or need more money, request a draw and inspection for reimbursement of funds you gave to your contractor to start the project and have them sign a lien waiver.
Repeat step 1 of the process until the rehab is completed.