Financial Advisor · FL · Member since 2024 · 437 posts · 96 votes
"Subject to appraisal."
If you’re relying on traditional appraisals for heavy value-add or fix-and-flip projects, you're constantly at the mercy of a third party who doesn't understand your vision.
Asset-based private credit looks at After-Repair Value (ARV) and execution capability.
Stop letting conservative appraisers cap your leverage.
What's the biggest gap you're seeing between purchase price and ARV in your market right now? Drop your city below.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
1mo
I've seen predatory private credit lend too much on properties simply because they want to get the property. I wouldn't trust a private credit company's view of ARV.
There are plenty of lenders out there who can do both hard money and conventional with the initial loan based on an ARV established by an appraiser.