What is ARV?
In short
After-repair value, and why it is the most abused number in real estate.
After-repair value is the estimated value of a property once the planned work is complete. It drives the projected exit value, and therefore drives almost every return figure downstream of it.
It is also the easiest number to inflate. A generous ARV makes a mediocre acquisition look excellent on paper and is only tested at sale, years later.
RealTIRR records the original ARV projection at underwriting and reports it against the actual realized sale price when a project exits. Predictions that were wrong stay on the record and inform the model.