Real Estate Investors buy distressed properties that are typically in need of repairs with the intention of fixing the dwelling and selling it for a profit.  These projects are commonly known as fix and flips.  In order to determine if the property is a viable investment, they must estimate what the value of the property will be after the repairs are completed (After Repair Value).  When an investor needs financing for the project, the lender will request an ARV appraisal from a licensed and/or certified appraiser to ensure there will be sufficient equity to finance the repairs.