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Why does DHM lend on the ARV?

Why does DHM lend on the ARV? Jordan Brewer

We lend on the ARV because it is the most accurate representation of a property's value and provides a better picture of how much money we can fund with each loan and your overall estimated net profit. Lending on the ARV also gives the borrower a significant advantage: with this type of loan, the amount of capital put in by the lender increases and the amount of capital invested by the borrower decreases.

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