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What is ARV, or after-repair value?
After-repair value is what a house should sell for once the renovation is finished. It drives your offer, your profit and your loan amount.
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Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
ARV in one sentence
ARV is the price a renovated house should sell for, based on recent sales of similar renovated houses nearby. Lenders use it to cap the loan, and investors use it to decide what to pay.
How to estimate ARV
- Find 3 to 5 sales of renovated houses within about half a mile, sold in the last 3 to 6 months.
- Match square footage, bedrooms, bathrooms, lot size and age.
- Stay in the same neighborhood, school zone and side of the major roads.
- Adjust for differences such as a garage, a pool or an extra bathroom.
- Use the price you can defend, not the highest sale on the street.
ARV and your loan
We lend up to 70% of ARV. On a house with a $350,000 ARV, the most we can lend is $245,000. If your purchase and rehab come in at or under that, we fund all of it.
Try your own numbers in the ARV calculator.
Dallas ARV pitfalls
Values in Dallas can change sharply within a few blocks, especially near the edges of neighborhoods like Lakewood, the M Streets, Kessler Park or Lake Highlands. A comp across a highway or in a different school zone can throw your ARV off by tens of thousands. When in doubt, ask a local agent who sells renovated houses in that pocket.
Hard money loans across Dallas–Fort Worth
We lend on investment houses throughout the DFW metroplex, in Dallas, Tarrant, Collin, Denton and surrounding counties.
Questions investors ask
Straight answers about after-repair value.
What does ARV stand for?
After-repair value: what the house should sell for after the renovation.
Who determines ARV for a loan?
We review your comparable sales and may order a valuation to confirm it.
How much can I borrow against ARV?
Up to 70% of the after-repair value, covering up to 100% of purchase and rehab.
What is the smallest loan you make?
Loans start at $150,000.
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