One of the major reasons real estate investors opt for hard money loans is their convenience when it comes to fix and flip projects. Money is provided quickly, a property can be swiftly improved, and then sold for a potentially sizeable profit. For those just getting started with fix and flips, however, there is a lot of terminology that may seem unfamiliar.
Let’s examine two common acronyms. ARV stands for after repair value. As its name suggests, this is what a fixed and flipped property’s estimated resale value will be once you’ve done all the upgrades and repairs on the property. ARV is particularly important as it will play a critical role in the bidding process.
Another one that may seem vague is MAO, which stands for maximum allowable offer. It is fairly self-explanatory, and it means the maximum number you are willing to pay for the property you’re interested in. When determining this number, you want to focus on the highest figure you can offer while still ensuring you’re making a profit from the improved project.
This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize 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 you to the closing table quickly and professionally. For more information on hard money lenders Miami or hard money loans Miami, please call 954-816-0388 or fill out our application.