Understanding the ARV, and Retail & Wholesale Prices

Investing In Real Estate With Lex Levinrad - A podcast by Lex Levinrad

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On this podcast episode I discuss the importance of understanding full retail value when calculating the After Repair Value. As an investor it is very important for you to understand what a house would sell for once it has been fixed up. In order to know this, you need to understand the difference between full retail price on a property that has been completely remodeled with granite counter tops, nice cabinets and stainless steel appliances versus a house that is at retail price in great condition but occupied by the owners and that has not been remodeled. The difficulty for new investors is understanding how much to offer on a house that is in less than perfect condition. For example, a house that has not been renovated in 20 years and has a tenant living in the house. How much should you offer on that house? Listen to today's episode to learn how buying the exact same house can have different exit strategies for different investors depending on whether they are planning on keeping the property as a rental property or fixing and flipping the property for a profit.