Question Regarding LTV/ARV with Hard Money

[Pete Perez]

Hello BPers!

I tried searching the recent posts, but couldn't find this question and I am sure its an easy one to answer. I am switching my short term investment goal to fix and flips and have begun looking into hard money loans. 

My question is regarding the database of hard money lenders here on BP. Most of the advertised lending is 60-80% LTV. What exactly is the value they reference? Is this the value the county appraiser will give the property? The After repair value of the property? I have found only 2 lenders that explicitly market their loans as ARV loans.

1. The Norris Group

2. Rehab Loan Group

Both are based out of Riverside, CA. I read @Brandon Turner 's book on investing with low and no money down and he identified hard money as a potential source for no money down investment strategies. Is it very difficult to find hard money lenders to finance the purchase price and rehab costs of a flip? I understand it is risky for them, so how do newbie investors like me convince lenders to lend to us?

Thank you!

Pete Perez