Real Estate Investing Terms

The estimated market value of a property after all necessary repairs and renovations have been completed.

A weighted estimate of a property’s After Repair Value (ARV) that combines the wholesaler’s ARV and a third-party ARV. The weight is determined by the confidence score of the third-party valuation, giving more influence to the estimate when confidence is higher.

The price at which a property is listed for sale by the seller or wholesaler, before any negotiations or discounts.

The expected amount of money an investor will make after selling a property, calculated as ARV minus all-in costs (purchase price + repairs + other expenses).

The difference between the after-repair value (ARV) and the investor’s all-in cost. Represents instant equity gained at purchase, before appreciation or loan paydown.

The projected rental income a property could generate each month, based on comparable rental rates in the local market.

The scheduled date set by the wholesaler for completing the property transaction. This is when ownership officially transfers and funds are exchanged.

PropPipeline’s built-in valuation engine that automatically pulls third-party data and investor rules to estimate property values, ARVs, and repair ranges.

A comparison between the investor’s total all-in cost (purchase + repairs + expenses) and the after-repair value (ARV) provided by the wholesaler. This highlights the spread between what the wholesaler projects and what the investor will truly spend.

An evaluation that compares the after-repair value (ARV) provided by a wholesaler with an independent third-party ARV (such as ValueSync or an appraiser). The variance between the two indicates whether the wholesaler’s ARV may be optimistic or aligned with market data.

A quick calculation method where your maximum allowable offer (MAO) is 70% of the ARV minus estimated repair costs.

The percentage return on the money invested, calculated as (Gain - Cost) / Cost × 100.

The profit a wholesaler makes by assigning their purchase contract to an end buyer.

A legal document that allows a wholesaler to transfer their rights and obligations in a purchase agreement to another buyer, usually for a fee.

Used in ValueSync, A percentage indicating how reliable the ARV estimate is based on comparable sales and market data quality.

Used in ValueSync, recently sold properties similar in size, condition, and location used to estimate market value.

The number of days a property has been listed for sale, indicating market demand.

The estimated total cost to bring a property to market-ready condition.

The cost or value of a property divided by its total square footage.

The asking price of the property divided by the total square footage. Used to compare pricing across different properties of varying sizes.

The total estimated rehabilitation costs divided by the property’s square footage. Shows how repair costs scale relative to property size.

The combined cost of the asking price and estimated repairs divided by square footage. Reflects the investor’s total basis in the property on a per-foot basis.

The projected after-repair value of the property divided by square footage. Used to benchmark against comparable sales.

The difference between ARV per square foot and all-in cost per square foot. Shows how much equity an investor gains at purchase.

Total all-in costs (asking + repairs) compared to ARV, expressed as a percentage. A key indicator of deal profitability and margin.