Brian Reed Interviews Ian Walsh of Hard Money Bankers - Day 2 - ARV
Backing up to the basics can really help understand a particular subject matter. Brian asks how a lender normally finds the max loan amount they are willing to put out against a property. The starting point in most markets is 65% of the ARV or 'After Repair Value'. This is the value that a property will be able to resell for once it is renovated. This is just a starting point as that number can go up or down based on different factors. Think of it as the zero line or base line to begin working from. The key is the accuracy of the ARV as that is where the rest of the transaction's success of failure will begin and end.
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