LTV of ARV

2 Replies

Originally posted by @Javier Pinedo :
What does it mean when an investor tells you that hes looking in a property for 65-70% LTV of ARV ?

That means if the property would sell for $200,000 ARV (After Repair Value) that means all fixed up it is worth $200,000, he will pay as much as 70% or $140,000 LTV (Loan To Value)

Which means for you to make any money you have to buy it for less than the $140,000