After-repair value (ARV)
The estimated market value of a property once planned repairs are done. Flippers and hard money lenders use it to set offer prices and loan amounts.
Also called: ARV, after repair value
Related terms
Buying a property, renovating it and reselling it quickly for a profit. Profit depends on the purchase price, repair costs, holding costs and the after-repair value.
A strategy of buying a property below value, rehabbing it, renting it, then doing a cash-out refinance to pull money back out and repeat. It depends on accurate repair costs and appraised value.
A short-term loan from a private lender based mainly on the property's value rather than the borrower's income. It closes fast but carries high rates and fees, and is common with flips and other investment deals.
Recently sold homes near the subject property that are similar in size, age, and features. Appraisers and agents use them to estimate value.
Putting a property under contract and then selling that contract to another buyer for a fee, usually without ever owning the property. Some states regulate or restrict it.