70~75% LTV of ARV for a developer

[Shu Zhu]

Hi All, I'm exploring to be a private or hard money lender. Went to a meet up today and learned that a developer, who seems to have a good track record based on his own account, usually borrows at 70~75% LTV of ARV for rehabbing projects. My reaction is the loan amount could then be well above the acquisition cost of the property. Does this make sense? Or because it's an established developer so more favorable terms are expected?