🏚️ Why “As-Is Value” Is Quietly Killing Your Leverage 🏚️

[Stevan Stojakovic]

🏚️ A lot of investors look at a deal and focus on the upside.

The rehab.
The ARV.
The spread.
The refinance.
The profit after cleanup.

But lenders usually start somewhere else - what the property is worth today. 🏦

That is where a lot of leverage quietly disappears.

📽️ I just posted a video on why as-is value can cap your proceeds even when the upside is obvious, why lenders separate current condition from future potential, and why even cosmetic rehab does not always move loan sizing the way investors expect.

This is especially relevant for fix and flip investors, bridge borrowers, and value-add buyers who keep running into lower leverage than they modeled. 📉

If the property looks like a strong deal to you but the lender still sizes it conservatively, this is usually part of the reason.

📌 The real issue is not whether the property has potential.
It is how the lender sees the property on day one.

If you have dealt with this before, you already know how expensive that misunderstanding can get. 💬

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