# ARV Explained: After-Repair Value in Real Estate

> ARV (after-repair value) explained. Learn how after-repair value is calculated and used in fix and flip and construction lending.

Canonical: https://riversidepark.capital/arv-explained-real-estate
Markdown: https://riversidepark.capital/arv-explained-real-estate.md

## Quick answer

ARV (After-Repair Value) is the estimated market value of a property after all planned renovations or construction are completed. It is used in fix and flip and construction lending to determine maximum loan amounts.

## Loan parameters

- Loan size: $500,000 – $10,000,000
- Loan type: Educational

## Eligible assets

- Fix and flip investment properties
- Construction projects

## Underwriting guidelines

- ARV determined by independent appraisal
- Max loan typically 70–75% of ARV

## FAQs

**Q: How is ARV calculated?**

ARV is estimated by an independent appraiser using comparable recent sales of similar renovated or newly built properties in the market area.

**Q: Why does ARV matter in fix and flip lending?**

Lenders limit loan amounts to a percentage of ARV (typically 70–75%) to ensure they are protected if the renovation takes longer or costs more than expected.

## Related

- [Fix and Flip Loans](https://riversidepark.capital/fix-and-flip-loans)
- [Fix and Flip Loan ARV](https://riversidepark.capital/fix-and-flip-loan-arv)
- [LTC vs LTV Explained](https://riversidepark.capital/ltc-vs-ltv-explained)

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Source: Riverside Park Capital — https://riversidepark.capital/arv-explained-real-estate