What is the after repair value (ARV) and how do you find comparable properties to accurately calculate it? Learn the answers here.
- Hey guys, welcome back to the course. … In this lecture, we're going to cover one of the most … important terms and concept around analyzing … wholesaling deals. … The term we're going to talk about is the ARV, … or what's affectionately known as the after repair value. … Now you can think of this as the price that a home buyer … is willing to buy a house for in the open market. … So we have a sample property and a flip investor … bought it, and has gone in and has done all … of the rehab work. … How much could they realistically expect to sell it for? … Now we start off with this because this figure … is ultimately going to dictate how much … you're going to offer on that property. … Now never ever start off by thinking, … how much can I afford to pay for this property? … And then trying to work your way up to a sale price. … Instead, always start with the ARV and then you work … your way down to what is the most … that you're willing to pay. … But, a couple of questions are going to follow …
- Name the formula used to calculate the MAO from the AVR.
- Summarize the 70% rule.
- Differentiate between the rehab estimator, ARV, and MAO calculator worksheets.
- Describe the factors in an AVR estimate.
- Cite the formulas that are helpful when pitching to a flip investor buyer.
- Explain the difference between recently sold comps and rental comps.