Demo To Dollars

Why Your ARV Strategy Is Costing You Thousands


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Smart real estate investors know that misusing ARV (After Repair Value) can cost them thousands, while those who approach it strategically create room for significant upside potential.

• ARV is an educated guess about what a property might sell for after renovation, not a guaranteed number
• Many investors treat ARV as gospel or artificially inflate it to make deals work on paper
• "Tommy" bumped his ARV from $280K to $295K to force a deal to work, ultimately breaking even after months of work
• Conservative ARV estimates create safety margins for unexpected market changes
• A $150K property with $100K in renovations and conservative $310K ARV projection ultimately sold for $389K during COVID
• The market changes daily, weekly, and monthly – projections must account for this reality
• Get comps from the last 60 days with attention to pending sales
• Only buy properties that work financially in your conservative scenario
• Smart flippers don't chase ARV, they control their exit

Get out there and get cracking on your first or next deal by following these ARV strategies that actually work.


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Demo To DollarsBy Ed Mathews