Understanding ARV: The Number That Makes Or Breaks Your Loan

ARV — After Repair Value — is the single most important number in a hard money deal. It is the estimated market value of the property once all of your planned renovations are complete. Get it right and financing is easy. Get it wrong and the whole deal wobbles.

How Lenders Use ARV

Most hard money lenders, us included, cap total loan exposure at roughly 70% of ARV. That single ratio protects both you and the lender by keeping a healthy equity cushion in the deal.

Calculating It The Right Way

• Pull 3-5 sold comps within a mile, ideally in the last 90 days.
• Match bed/bath count, square footage, and finish level.
• Adjust for differences — a garage, an extra bath, a bigger lot.
• Use the adjusted average, not the highest sale you can find.

“An honest ARV keeps you out of trouble. An inflated one just borrows problems from your future self.”

— Henry

When you send us a deal with tight, defensible comps, we can underwrite and issue terms fast — because we are not guessing, and neither are you.