If you’re thinking about flipping your first house in Texas, you’ve probably heard the term ARV tossed around. After-Repaired Value. It sounds simple enough, but when you’re standing in a property that needs work and you’re trying to figure out how much money you can actually borrow, ARV becomes the most important number in your deal.
We’ve been helping investors in Dallas-Fort Worth, Austin, San Antonio, and Houston finance fix and flip projects since 2015. At HiFi Hard Money, we lend based on what your property will be worth after you renovate it, not just what you’re paying for it today. That approach changes everything about how you structure deals and plan your budgets.
How ARV-Based Lending Actually Works
Here’s what makes ARV lending different from a traditional mortgage. When you walk into a bank, they look at the purchase price. If you’re buying a distressed property, they calculate their loan amount based on what you’re paying for it. You’re stuck covering the rest plus all your rehab costs out of pocket.
With ARV-based lending, we look at what that property will be worth after you fix it up. We can lend 65 to 75% of that ARV, which means you can access significantly more capital. That covers your purchase and a big chunk of your renovation budget. You’re not draining your capital on day one.
The key is understanding that ARV lending is built for investors who see potential where others see problems. You’re buying properties below market value, adding value through smart renovations, and selling at a profit. Our job is to give you the financial leverage to make that happen without requiring a massive pile of cash upfront.
What We Look At When You Apply
Your credit score matters, but it’s not the whole story. We care more about the property itself and your plan for it. Is the property in a strong neighborhood? Are your repair estimates realistic? Do the comps support your ARV?
For single-family homes in major markets across Texas, we focus on projects that make sense. We’re cautious about condos and selective about small multifamily properties right now. That’s not because they can’t work. It’s because market conditions change, and we want to make sure every deal we fund has a clear path to profit.
You don’t need years of flipping experience to work with us. If this is your first project, we’ll walk you through what to expect. We’ve seen thousands of deals, and we share what we’ve learned, whether the feedback is cautionary or optimistic. Honest evaluation helps you succeed.
The Timeline From Application to Funding
Speed matters when you’re competing for properties. Here’s what our process looks like.
You apply online or give us a call at (972) 630-6676. We review your project and typically provide a preliminary offer quickly, even during off-hours. Most of our clients have direct cell access to our team because timing matters in real estate investing.
Once we move forward, we can close in five business days if you’re new to HiFi. If you’ve worked with us before, we can get you funded in as little as three business days. That’s faster than most hard money lenders, and it gives you a real advantage when you’re making offers.
What You Get When You Work With HiFi
We defer fees and interim interest until you sell the property. That includes points, third party costs like appraisals and loan docs, your first month’s prorated interest, wire fees, and inspection fees. You’re not writing big checks at closing. You’re keeping your capital available for the work that needs to happen.
Our draw process is built for speed too. We’ll work with your scope of work, though we prefer a simple one page format. Typically, we do one physical inspection around 40 to 50% completion. Otherwise, photos and videos work fine. Most draws get processed the same day or next day. All associated fees are deferred until exit.
We’re transparent about costs. The appraisal fee is what we pay. Doc prep is what we pay. We don’t add administrative fees or underwriting fees on top. You know exactly what you’re spending because we tell you.
Planning Your First Flip With ARV in Mind
Before you make an offer on a property, you need three numbers locked down: purchase price, rehab budget, and ARV. If any of those numbers are wrong, your deal falls apart.
Purchase price is straightforward. Rehab budget is where new investors often stumble. Get multiple contractor bids. Build in a buffer for surprises because there are always surprises. Don’t overspend on finishes for a lower tier home, and don’t cut corners if you’re aiming for a higher price point. Match your upgrades to what buyers in that neighborhood expect.
ARV is the number that determines how much you can borrow. Pull comps carefully. Use recently sold properties that are similar in size, condition, and location. If you’re renovating a three bedroom, two bath house, your comps should be three bedroom, two bath houses, not four bedroom homes down the street. Be conservative. It’s better to underestimate ARV and be pleasantly surprised than to overestimate and discover you’re underwater.
Also, pay attention to factors that affect value but don’t show up in square footage. School boundaries can swing property values significantly. A home near a good elementary school is worth more. Proximity to busy highways, airports, or power lines can drag values down. Use resources like SchoolDigger.com when you’re evaluating neighborhoods.
Why ARV Lending Works for Texas Flippers
Texas has strong real estate markets in Dallas-Fort Worth, Austin, San Antonio, and Houston. Population growth, job markets, and demand for renovated single-family homes create opportunity for investors who know what they’re doing.
ARV-based lending gives you the leverage to act on those opportunities without tying up all your cash. You can take on multiple projects, scale your business, and manage risk better when you’re not overextended on any single deal.
We’ve been doing this since 2015. We’ve seen what works and what doesn’t. We’ve funded flips in neighborhoods across Texas, and we know how to structure loans that make sense for your project and your strategy.
If you’re ready to move forward on your first flip, we’re here to help. The application process is simple. You can start online right now, or call us at (972) 630-6676. Let’s talk about your project and figure out how ARV-based lending can help you get it done.
FAQs
What’s the difference between loan-to-value based on purchase price and loan-to-value based on ARV?
Purchase price LTV limits your loan to a percentage of what you’re paying for the property. ARV-based LTV lets you borrow against the property’s value after renovations are complete. That means more capital available for both the purchase and the rehab work. We offer 65 to 75% LTV against ARV, which gives Texas flippers the flexibility to structure deals with less money out of pocket.
How long does it take to close a fix and flip loan with HiFi?
For new investors working with us for the first time, we close in five business days. If you’re a returning investor, we can close in as little as three business days. Speed matters when you’re competing for properties, and we’ve built our process to move quickly without cutting corners.
What types of properties do you finance in Texas?
We focus on single-family homes in major markets across Texas, including Dallas-Fort Worth, San Antonio, Austin, and Houston. These are non-owner-occupied investment properties. We’re selective about small multifamily projects in the current environment, and we don’t finance condos. Every property and project is different, so give us a call at (972) 630-6676 and we’ll let you know if your deal is a fit.
Do you charge upfront fees for fix and flip loans?
No. We defer fees and interim interest until you sell the property. That includes points, third party costs like appraisals and doc prep, your first month’s prorated interest, and inspection and wire fees. We’re transparent about costs. The appraisal is what we pay. Doc prep is what we pay. No administrative fees. No underwriting fees. You know exactly what you’re spending.
