If you’re going to be a Real Estate investor, you need to have a solid understanding of After Repair Value or “ARV”, says Jason Picht; Tallahassee Real Estate professional. In this episode, Jason and Thom discuss the basics of ARV and why you should take the time to thoroughly understand ARV before making a single investment.
Tune in to hear:
- Insight from Jason’s own experience in investing in Real Estate.
- How after repair value and your multiplier could potentially change depending on the type of investment you are considering (Flip, buy and hold, rental property, etc)
- And much more
3:07: Jason provides some insight into his experience in Real Estate investing and how the market has changed over his career to date; providing him with different opportunities to invest in flips, buy and hold property, as well as a handful of rental properties.
4:37: We define after repair value and discuss why it’s important to understand ARV as a real estate professional. Jason explains the role of a property appraiser and the process they typically go through to determine the value of a property.
5:45: We discuss why you, as an investor, need to understand how to calculate after repair value yourself.
9:30: We discuss the process investors can use to identify potential properties, how the MLS can be used to generate automated alerts for new properties, and the point at which after repair value comes in to play in practice.
11:05: We discuss the process of making adjustments; as well as looking at comps to narrow in on your ARV. We also discuss the importance of hiring a local real estate professional; as opposed to simply relying on tools like Zillow and Trulia to determine the true value of an investment property.
13:18: We dig in to how you actually compare your target investment property against the selected comp properties.
14:45: And lastly, we discuss how the multiplier you use can vary depending on the type of investment property you are considering.