Useful Investor Lingo

Do you want to work with investors? It’s useful to know their unique language and acronyms. Here are some of the biggies:

ARV – After Repair Value. This is the value of a property after renovations. 

ROI – Return on Investment. Surprisingly, this is not used the same way by all investors. Technically it refers to the actual return on the investment of course. Some investors annualize the ROI by factoring in the hold time. This is the approach we recommend as allows for more accurate comparison with other opportunities. Example: Would you rather make 30% or 20% ROI? This question begs information about the hold time. If the answer is 30% over 3 years versus 20% in 6 months, 20% is the obvious preference. 

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