ARV(After Repair Value)- this is the most common term used in real estate. This is where all of your numbers and math start with. So, the ARV simply means what the house will be worth once it is in a fully updated state.
Comps(Comparables)- Comps are properties similar to your subject property that are fully repaired/updated. These properties give you your ARV. You run COMPs to determine what the house will sell for once it is all fixed up.
Repairs- This is self-explanatory except for the fact that this may not mean actual repairs. Here’s what we mean. Sometimes a house does not need “repairs” but it does need to be updated. So, when someone asks you what the repairs are, this doesn’t necessarily mean what’s broken but rather what does the house need to reach it’s ARV.
FMV(Fair Market Value)- unlike ARV, FMV is what the value is of the house right now as it sits. This is the value of the home in its current condition.
Assignment Fee- This is the money you make when wholesaling a property. Like we mentioned in the beginning when you sell your terms to someone else you are essentially “assigning” your rights to purchase that home to someone else for an Assignment Fee.