Understanding ARV and Calculating Your Offer Price

On this podcast episode I talk about how to calculate the After Repair Value (ARV), so that you can know how much to offer on a property. Most new investors, and a fair amount of seasoned investors make the mistake of using common tools like Zillow, the MLS, and the Property Appraiser Website to estimate what a house is worth. On this podcast I talk about why that is a mistake and how that mistake can cost you a lot of deals (and a lot of money). I use as an example, a house that I just purchased last week from a wholesaler. I paid $105,000 for this house and the wholesaler purchased it for $90,000. According to most online estimates on sites like Redfin, Zillow, Movoto and Trulia the house is worth around $125,000. However the real ARV on this house is probably more like $165,000. I explain to you in detail how I came up with that number by showing you how I use the MLS to see what is for sale right now and how a first time home buyer with an FHA mortgage thinks. Using the wrong tools, or not having complete access to tools like a good comparable sales report (which is not free) can create a situation where you rely on sites like Zillow, the property appraiser and the MLS for comps and to estimate ARV. While that may work (more or less) sometimes – it won’t work all the time. Those sites can, and will, throw you astray. You will not always get accurate numbers if you use these sites to estimate ARV. Having access to the MLS, and a good comparable sales report (we use Title Pro), plus doing the work in understanding your market, what sold, and what is listed for sale, can be the difference between being way off, or spot on when it comes to estimating the ARV. This is one of the most important (and overlooked) topics for new investors. And that is one of the main reasons that I focus on it so much in our training’s. Knowing how to make money out of deals that other people pass on is my specialty. I buy awsome deals every day from wholesalers that other investors pass on. And you want to know why? Because they are not dialed into the ARV. If you learn how to really know your comps, your market, and your ARV’s, then you will see how you will make a lot more money as a real estate investor. If you are brand new to real estate and want to learn more about how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below: FREE WHOLESALING TRAINING https://www.lexlevinrad.com/webinar FIXING AND FLIPPING TRAINING If you want to learn how to fix and flip houses I have a fix and flip training webinar at this link: https://www.lexlevinrad.com/fixandflipwebinar DON’T FORGET TO SUBSCRIBE TO THIS PODCAST TO BE NOTIFIED OF UPDATES SUBSCRIBE TO MY YOUTUBE CHANNEL http://www.youtube.com/lexlevinrad?sub_confirmation=1 CONNECT WITH ME ONLINE http://www.lexlevinrad.com http://www.facebook.com/lexlevinradrealestate http://www.twitter.com/lexlevinrad http://www.instagram.com/lexlevinrad http://www.linkedin.com/in/lexlevinrad http://www.pinterest.com/lexlevinrad https://plus.google.com/+LexLevinradrealestate DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING PROPERTIES For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best selling book “Wholesaling Bank Owned Properties” at https://www.lexlevinrad.com

Hear What Recent Listeners Have to Say About Our Podcast

Incredible podcast!

This podcast is a must listen for anyone looking to level up their real estate investing strategies! Lex is a great host and his conversations with guests reveal everything you need to know to succeed.


Amazing Content!

Lex does such a good job covering a variety of topics. The guests offer valuable insight as well. I would recommend this podcast to anyone looking to be inspired and informed!


Absolutely Top Class!!!!

Excellent content from one of the top boots on the ground investor. Personally changed my life and my Real Estate investing career. Many thanks Lex for providing amazing content, mentorship and for sharing your knowledge and real world experience.


Invest like the best!

Whether you're a seasoned real estate investor or just dipping your toes in, Lex is the guy you want in your corner - and your headphones! I cannot tell you how much I've learned from this show. Thanks a million, Lex!

Arlie K

Excellent Content!!!!!

This is a wonderful podcast to listen to with such valuable content. I was very interested to listen to your take on why one should purchase rental property.


Best real estate investor podcast.

Lex gives you real tips with actual names of multiple sites and services to use from the beginner up to advanced. I feel he’s giving away his classes for free on the podcast. Most podcasts stop short of details and give generic advice unless you join there groups.


The Real Deal!

I’ve been looking to get into the world of real estate investing but everyone I ask gives me answers that makes it all sound way too easy. This podcast gives you the real deal. More please!

Anna B David

Great show for beginners or experts!

As an amateur flipper since I was in my teens, I kind of have gotten pretty good at identifying great opportunities and taking advantage of them. But, Lex dives much deeper and gives actionable tips on how to make sure you are looking at everthing before making any decisions. I'm hooked!

Mitche Graf

Be Prepared to Learn!

Two words: Information Dense. Sweet Moses. I’ve listened to other real estate investing podcasts but this by far is the most practical, the most hands-on podcast I have heard to date. You can tell that the host, Lex, is very passionate about real estate investing. That passion with his experience translates into an excellent podcast. He shares theory about a topic and then tells a story about his experiences in the real world. That to me is gold!

Cliff Duvernois