What Is an Asset-Based Loan? Beyond Just ARV
What an asset-based loan really is — why address and ARV alone are not enough, and what hard money underwriting checks before funding your deal.
Want the full breakdown with underwriting details, FAQs, and next steps? Read What Is an Asset-Based Loan? It's Not Just ARV.
Video transcript
Lightly edited for clarity.
Hey guys. So, I get a lot of requests for asset-based loans, and typically someone will just give me the address and the ARV, and then they'll say, "Can you lend on it?" And when I start asking more questions about the deal itself, the structure, the experience of the operator, things like that, they tell me none of that matters because it's an asset-based loan.
And let me tell you, to get to that ARV, you need to be able to have the cash, you need to have the wherewithal, and you've got to be able to get it there, right? So an asset-based loan is not just take a piece of real estate and lend at 75% of the ARV. There's more that goes into that, and it's all logical.
I don't necessarily care what your credit score is. If you have a challenged credit score, I may ask why — again, not a controversial question. But keep in mind, an asset-based loan is not just take a piece of real estate and a stranger lends 75% ARV on that.
Just keep that in mind, because it'll save a lot of time and frustration on your part when you get asked those questions.