## How do you access investment property inventory?

 

We've polled hundreds of acquisitions professionals, specifically focused on single family rental property and fix and flip. The feedback is unanimous: *inventory is the number one constraint, the market is starving for inventory.*

 

## OfferMarket is the fastest growing investment property marketplace

 

OfferMarket is an investment property marketplace. Every day, exclusive and off-market listings for single family homes are posted on OfferMarket. You won't find these listings on the MLS. In many cases, you will only find them on OfferMarket. 

 

If you're a real estate investor, you need to [subscribe to OfferMarket deal flow](https://www.offermarket.us/survey/subscribe/deal-flow) to access exclusive and off-market single family listings in your target markets.

 

## What kind of inventory is available on OfferMarket?

 

- Turnkey, leased rental properties
- Distressed single family houses

 

## Who lists inventory on OfferMarket?

 

- [Wholesalers](https://www.offermarket.us/wholesalers)
- [Landlords](https://www.offermarket.us/blog/tired-of-being-a-landlord-sell-your-rental-property)
- [Distressed sellers](https://www.offermarket.us/sell-my-house-fast)
- [For Sale By Owner](https://www.offermarket.us/guides/how-to-sell-a-house-by-owner) (FSBO) DIYers

 

## In what markets does OfferMarket have inventory?

 

Access [exclusive and off-market inventory](https://www.offermarket.us/listings) across hundreds of markets nationwide! Here are some of our most active markets:

 

- Greater Baltimore, MD
- Phoenix, AZ
- Jacksonville, FL
- South Florida
- Indianapolis, IN
- Louisville, KY
- Columbia, SC
- Atlanta, GA
- Greater Philadelphia, PA

## [Browse all inventory](https://www.offermarket.us/listings)

 

## Who subscribes to OfferMarket deal flow?

 

- Hedge funds
- Private Equity funds
- REITs
- Local and independent rental and fix and flip investors

 

## Where's your deal flow coming from? [Subscribe to OfferMarket Deal Flow](https://www.offermarket.us/survey/subscribe/deal-flow)

OfferMarket is the fastest growing investment property marketplace, offering easy access to exclusive, off-market real estate inventory.

Deal Flow - OfferMarket Is The Fastest Growing Investment Property Marketplace

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Deal Flow: Fast-Growing Property Marketplace - OfferMarket Blog

Deal Flow: The Fastest Growing Investment Property Marketplace

<div style="width:100%;"><iframe width="100%" height="315" src="https://www.youtube.com/embed/anbSNLi1Y7w" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe></div>

 
 

## Buyers Pay Buyer's Agent Commission In Off Market Deals

 

Unlike on-market MLS transactions where the seller pays the buyer's agent commission (typically 2.5% - 3%), the standard in off market and wholesale real estate transactions is for the the buyer to pay their agent's commission.

 

There are a few reasons why buyers pay their buyer's agent commission:

 

## The Deal Is Not Priced For The Seller To Pay A Buyer's Agent

 

Most off market deals for investment properties -- properties in poor condition, distressed sellers, leased rentals -- are not priced with the expectation that the seller or wholesaler will be paying a buyer's agent's commission. Why? Because most off market deals do not involve buyer's agents who ask for the seller to pay their commission. Off market deals either do not involve a buyer's agent at all, or they involve an investor-friendly buyer's agent who understands that in an off market transaction their client (the buyer) pays their commission. 

 

If you want the seller to pay your commission, then add your commission on top by increasing your offer price.

 

## Avoid Unnecessary Friction

 

Many single family and small multifamily investors deal direct and do not have agent representation. Asking a seller or a wholesaler to figure out how to pay the buyer's agent commission is an added complexifier and reduces the chance the agent-represented buyer will have their offer accepted.

 

### Buyer's Agent Off Market Faceplam Moments

 

Aside from the commission component, agents who do not have off market deal experience are known to add significant friction to the deal. One example is pushing back when the wholesaler's contract specifies a title company but the agent wants to try to change the title company. 🤦

 

Another example is when the agent gets upset that the wholesaler is making more on the deal than they are, and then tries to reduce the wholesaler's assignment fee. This is not the way to get your client a new property. 🤦‍♀️

 

The most cringeworthy example is perhaps when the buyer's agent contacts the seller or wholesaler and asks if they pay buyer's agent commission and then tells them that their commission is 4% (standard agent commission is 2 - 3% off market and on market). Going one step further, when they are told that they should have their buyer pay their commission or add it to their client's offer price, they steer their client away from the deal. This is an incredibly common occurrence and fascinating exposé of the failings of the current agency model and rampant breach of fiduciary duty. 🤦🏽

 

A final example is when agents don't understand wholesale real estate and assignment of contract. If this applies to you or your agent, read [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101). 🤦🏼‍♀️

 

### Agents For Flippers Get The Flip Listing

 

Fix and flip buyers typically have an agreement -- implied or explicit -- with their buyer's agent that the agent will be the listing agent when the rehab is completed and the property is ready to be sold on market. That commission check will be higher, so the agent doesn't need to rock the boat trying to get the seller to pay their commission in the off market deal.

 

## Who Pays Agent Commission On OfferMarket?

 

Off market listings on the OfferMarket investment property marketplace are designed to accommodate buyer agents. Buyer's agents submit offers directly on the OfferMarket listing and specify how they would like their commission to be paid. To avoid unnecessary friction that can lose the deal for a buyer, it is recommended that the buyer pays the buyer's agent's commission.

 

In an off market transaction, the buyer is expected to pay their agent for bringing them the deal. But we recognize that it's open for negotiation.

 

Depending on the seller's motivation, net proceeds sensitivity, and buyer demand for the listing (i.e. multiple competitive offers received), the seller may reject a request from the buyer/buyer's agent for the buyer's agent to be paid by the seller. The seller may request a lower commission, since off market transactions typically have lower commissions to the buyer's agent (2% instead of 2.5% or 3%). The seller may counter offer and request a higher offer price in order for the seller to justify paying the buyer's agent commission.

 

## Buyer Agents That Understand Off Market Listings Add More Value For Their Clients

 

Off market, wholesale and For Sale By Owner (FSBO) real estate transactions are typically not priced for the seller and assignor (wholesaler) to pay buyer agent commission. Unless the seller explicitly states in their listing that they are offering a 2% or 3% commission to buyer's agents, it should not be expected of the seller and/or assignor to pay the buyer's agent commission for an offer at asking price. 

 

If you're an agent representing a buyer in an off market transaction, there's no need to worry, there's always a way to make the deal work for all parties involved.

 

The following are the most common arrangements to ensure the buyer's agent is fairly compensated:

 

1. Buyer pays their agent a 2% commission (most common for wholesale, distressed properties)
2. Buyer increases the purchase price in their offer and asks for the seller to pay a 2% to 3% commission (most common for wholesale, distressed properties)
3. Seller happily accepts offer at asking price and pays fair commission to buyer's agent (most common for [FSBO](https://www.offermarket.us/real-estate-glossary/fsbo) and [OfferMarket Exclusive Listings](https://www.offermarket.us/listings).

 

Investor-focused buyer's agents are easy to work with and get an off-market deal done quickly. Buyer's agents who are not familiar or experienced with off-market transactions frequently introduce major friction which derails deals and causes unnecessary effort and stress for all parties. If you are an agent representing a buyer in an off-market transaction, it is important that you reset your expectations according to the norms of off-market transactions and adapt to get the deal done for your buyer with terms that work for everyone.

Buyer's agents (and buyers represented by agents) that understand off-market, wholesale and FSBO listings add more value for their clients.

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Who Pays Buyer's Agent in Off-Market Deal?

Who pays the buyer's agent commission in an off market, wholesale transaction?

## **What is After Repair Value?**

After Repair Value ("[ARV](https://www.offermarket.us/blog)") is the estimated value of a property after it has been renovated or improved. This metric is crucial for real estate investors, house flippers, and lenders as it helps determine the potential profitability of a deal. Investors use ARV to assess whether a property is worth purchasing and to strategize their renovation budgets effectively. Lenders also rely on ARV to decide the amount they are willing to finance.

For example, if you bought a house for $100,000, invested $50,000 into a cost-effective renovation, and it then appraised for $200,000, the ARV is $200,000. To estimate the ARV of a property, you can look at the comparable home sales and listings ("[comps](https://offermarket.us/real-estate-glossary/comps)") to see what properties with similar characteristics in a neighborhood are selling for.

Using the [BRRR method](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) real estate investing method, your budget of purchase price plus rehab would ideally be no higher than 75% of the ARV. For example, let's say you bought a property for $50,000 and invested $25,000 into repairs. That's $75,000 of invested capital. Now, when you go to a lender to refinance the property by taking out a mortgage, the home appraises for $100,000. The ARV in this example is therefore $100,000. Since most lenders require 25% down for non-primary residences and investment properties, you're able to cash out 75% of the appraised value of the property -- that's $75,000 which is is the entire amount you invested in the project.

## **How do you calculate After Repair Value?**

To calculate ARV, investors use a straightforward formula:

However, this method alone may not be sufficient. A more accurate way to calculate after repair value is by analyzing comparable sales, also known as "comps."

1. **Research Comparable Properties (Comps)**: Look for properties in the same neighborhood that have similar features, including size, age, and condition, and that have recently sold. 
2. **Adjust for Differences**: Compare the property you are evaluating to these comps. If a comparable home has features your property lacks, adjust the value accordingly. 
3. **Estimate Post-Renovation Value**: Once you determine an average price per square foot from the comps, multiply that by the total square footage of your property to estimate its ARV.

For example:

* A similar renovated property sold for $250,000 and has 2,000 square feet. 
* Price per square foot = $250,000 / 2,000 = $125 per sq. ft. 
* If your property is also 2,000 square feet, its estimated ARV would be **$125 x 2,000 = $250,000**.

## **How to Determine After Repair Value**

Determining ARV involves more than just running numbers. Here’s a step-by-step approach:

1. **Evaluate Market Conditions**: Understanding market trends is crucial. A rising market may allow for a higher ARV, whereas a declining market requires a more conservative estimate. 
2. **Assess Property Condition and Repairs Needed**: A property requiring extensive renovations will have a lower initial value but a potentially high ARV if improved properly. 
3. **Consult with Real Estate Professionals**: Work with local realtors, contractors, and appraisers who have experience in valuing post-renovation homes. 
4. **Use Online Valuation Tools**: Real estate platforms like Zillow, Redfin, and Realtor.com can provide estimated property values and recent sales data.

### **How to Determine After Repair Value of a Home**

For investors looking to determine the after repair value of a home, the key is to find **the right comparable properties** and ensure they reflect the home’s potential post-renovation condition. Look at homes with similar renovations, location, and amenities. If your property will have a new kitchen, updated flooring, and modern bathrooms, ensure that your comps reflect those upgrades.

## **Does an Appraiser Determine After Repair Value?**

An appraiser can determine after repair value, but typically, they assess a property’s **current** market value. However, if an appraiser is working with a lender for a rehab loan (such as a hard money loan or FHA 203(k) loan), they may provide a **subject-to appraisal**, which estimates the property’s value after planned renovations.

To obtain an appraised ARV, the appraiser reviews the renovation plans and finds comparable properties that match the anticipated improvements.

## **How to Estimate After Repair Value**

Estimating ARV requires a blend of research, market knowledge, and expert input. Here’s a simple process:

1. **Gather at least three comps** that have sold within the last six months. 
2. **Adjust for unique features** (e.g., pool, garage, extra bedrooms). 
3. **Account for market shifts** (recent sales, interest rates, and demand trends). 
4. **Factor in renovation impact** (quality of upgrades and added value).

## **How to Figure Out After Repair Value**

If you want to figure out after repair value, consider working with a real estate agent, appraiser, or professional investor. They can provide an expert opinion based on market analysis and comparable properties. Additionally, leveraging technology such as automated valuation models (AVMs) can help refine your estimates.

## **How to Find After Repair Value**

There are multiple resources available to find after repair value:

* **MLS (Multiple Listing Service)**: Best for accurate and detailed comparable sales data. 
* **Real Estate Websites**: Zillow, Redfin, and Realtor.com provide estimated values and recent sales. 
* **Local Real Estate Agents**: Their expertise in market trends and pricing is invaluable. 
* **Professional Appraisers**: A certified appraisal provides a well-documented estimate. 
* **Investor Networks**: Joining real estate investment groups can provide insights into ARV calculations and local trends.

## **Final Thoughts**

Understanding how to determine after repair value is critical for making profitable real estate investments. By accurately estimating ARV using comps, market research, and professional insights, investors can maximize returns and minimize risks. Whether you’re flipping homes or investing in rental properties, mastering ARV calculations will help you make smarter investment decisions.

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## **Build wealth through real estate with OfferMarket**

If you've found this helpful and would like access to more rental property investing insights, sign up for OfferMarket. Membership is free and comes with the following benefits:

🏠 **[Off market properties](https://www.offermarket.us/listings?ref=content-after-repair-value)**
💰 **[Private lending](https://www.offermarket.us/loans?ref=content-after-repair-value)**
☂️ **[Landlord insurance rate shopping](https://www.offermarket.us/insurance?ref=content-after-repair-value)**
💡 **[Community & insights](https://www.offermarket.us/login?ref=content-after-repair-value)**

If you are not already a member, we hope you will [accept our invitation](https://www.offermarket.us/listings?ref=content-after-repair-value) to join us!

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The After Repair Value (ARV) is the value of a property after completion of a renovation. 

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After Repair Value (ARV) | OfferMarket Real Estate Glossary

Understanding After Repair Value (ARV) in Real Estate Investing

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Private Lending

Types of loans from hard money and private lenders

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A **private lender** is a person or business that provides loans directly to real estate investors. Private lenders typically provide capital to investors who would otherwise have a difficult time qualifying for or obtaining a loan from a bank or financial institution. In many cases because the loan is for a property in poor condition, or the borrower does not have a W-2 source of income.

 

## Types of loans from hard money and private lenders

 

- bridge loans (fix and flip, [BRRR](https://www.offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance))
- rental loans and [cash out refinance](https://www.offermarket.us/real-estate-glossary/cash-out-refinance)
- rental portfolio loans

 

Private loans are typically guaranteed by the borrower and collateralized (backed) by real estate or other assets of the borrower. 

 

## Private lender cash out refinance

 

If you own a rental property individually or in an LLC, you can easily refinance to a lower interest rate and pull cash out in the process.

 

## [Get a quote from OfferMarket Capital](https://www.offermarket.us/capital)

 

Take your real estate investing to the next level with OfferMarket Capital. Access the most competitive and transparent rates on bridge loans (fix and flip) and 30 year fixed rate rental loans (purchase and refinance).

 

### Related terms

 

- [Private Lender Data Feed](https://www.offermarket.us/blog/private-lender-data-feed)
- [Hard Money]((https://www.offermarket.us/real-estate-glossary/hard-money)

What is a Private Lender? Learn about private lending and how to find private lenders for your real estate investments.

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What is a Private Lender in real estate?

Types of loans from hard money and private lenders

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