As-is value is the appraised or estimated market value of a property right now — warts and all. It is used in purchase negotiations, hard money lending, and BRRRR strategy underwriting.
As-is value vs ARV (After-Repair Value):
- As-is value: What the property is worth today
- ARV: What the property will be worth after renovations
- Spread: ARV − As-Is Value = potential equity created through renovation
Hard money lenders lend against the lower of as-is value or purchase price. The gap between as-is and ARV is where fix-and-flip and BRRRR investors find their profit margin.
Related Terms
ARV
After-Repair Value — estimated market value of a property after renovations are complete.
Loan-to-Cost (LTC)
Loan amount as a percentage of total project cost (acquisition + rehab), used in construction and fix-and-flip financing.
Fix and Flip
Buying a distressed property, renovating it, and selling it for a profit — typically within 6–12 months.