Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Lender's Take: Inflated ARV & Borrower Savvy Check! #shorts

16 May 2026 · 1 min

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In this short, a lender explains his appraisal requirements and risk assessment strategy. He insists that appraisers provide both an as‑is value and an after‑repair value (ARV) for a property. If the ARV appears excessively inflated, he interprets it as a sign that the borrower or partner lacks industry savvy and may be misrepresenting the property's potential. Consequently, he chooses to walk away from such deals, emphasizing the importance of realistic valuations and borrower competence.

Chapters

Are you a land shark doing deals? Inflate their ARV. But when I send out an appraiser, I want the as-is condition value and I want the ARV value. And they can do that. And if their ARV is super inflated, then I don't even know if I want to work with them. Not just because they did that, but because do they really think that? They're not savvy enough in this industry to come up with an accurate ARV. I'm kind of out. Like there's just different things where I just, I'm just like, yeah, I'm going to pass because I want people to understand.