Real estate investors choose hard money loans for various reasons, among them their convenience when working with fix and flip projects. Money is received promptly, a property can be improved quickly, and then sold for a significant profit. For people that are still new to fix and flips, however, there is a lot of terminology that may seem strange.
Fort Lauderdale, FL -- (SBWIRE) -- 05/17/2019 -- Let's take a look at a very common acronym: ARV, which means after repair value. As the name implies, this is the estimated resale value of a property once it's undergone all the upgrades and repair work. ARV holds considerable importance as it will factor heavily in the bidding process.
Another somewhat vague acronym is MAO, which means the maximum allowable offer. This one is largely self-explanatory, and it means the maximum number a person would be willing to pay for a property they're considering. When figuring out MAO, it's worth concentrating on the highest figure that one can offer while still ensuring a profit will be made once the property has been improved.
About Monroe Funding Corporation
Monroe Funding Corporation is a direct equity lender serving clients throughout Central and South Florida, specializing in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get clients to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out the application.