The One Number That Makes or Breaks a Real Estate Deal

Will Harvey got started in real estate 10 years ago. He was a football player in college but sustained a double hip injury, which ended his career as an athlete and prevented him from finishing college. He then joined the mortgage business and began originating loans.

After one year, he house-hacked his first property, using rental income to cover the mortgage. Will Harvey went on to purchase two more properties over the next 2–3 years, but he soon realized that dealing with tenants was not his strength.

In 2019, Will Harvey left the mortgage business and started a house-flipping company with his partner. His partner handled the construction side of the business, while Harvey brought the financial expertise. The income from house flipping was then reinvested into multifamily syndications.

Will Harvey later shared that he enjoys the passive, finance-oriented side of real estate. In 2023, he started a small fund, which now has slightly over two million dollars in assets.

How Did You Get Started as a Hard Money Lender?

A good opportunity led Will Harvey to become a hard money lender.

A borrower came to him with strong income and a 75% down payment but couldn’t qualify for conventional financing because his income was coming from another country. Will Harvey decided to fund the deal, which is how he got started in hard money lending.

In 2025, he launched Harvey Capital, a dedicated hard money fund.

How to Evaluate Deals in Northern Virginia?

Will Harvey believes that any deal is worth investing in at the right price. There is a price for every property. It could be a dollar or a million dollars, but the numbers must make sense. What matters is whether the deal works based on a realistic and conservative ARV. You must begin with a conservative ARV if you are to stay out of trouble in Virginia or any other market.

"You have to be an expert at comping a property and knowing exactly what it's likely to sell for," he says. "That will make or break your deal."

Will Harvey had a straightforward rule for all flipping projects. His company must net a minimum of 10% of ARV after accounting for all expenses (renovation, interest, holding costs, closing costs, and realtor fees). That 10% profit is calculated on a conservative ARV, not an optimistic one.

"Most of the time, when we ended up doing close to what we projected, something had gone wrong," Harvey notes. "Because when we were truly conservative, we usually made more than we expected."

Hard Money Loans are Denied When the ARV is Stretched

An aggressive ARV requires market cooperation, and you are hoping that renovations will go perfectly and buyers will show up on your schedule—that doesn’t happen in practical life. Like in any investment, things go wrong in the real estate world.

"If I look at a deal and they're stretching the ARV, and the net is thin even at that number, it's probably not something I want to get involved with," Will Harvey explains. "Because if anything goes wrong, it could turn into a loss."

Here are some sample numbers when looking at a deal:

• ARV: $300,000

• Renovation cost: $60,000

• Purchase price: $150,000

That’s a deal with margin that can yield profit for both the investor and the lender. Will Harvey says he will decline the deal even if the borrower puts more money down because the issue isn’t about the collateral. It’s about choosing deals with the right numbers.

What is the Hardest Lesson You Learned in Your Journey?

Will Harvey lost $70,000 on a deal due to an overly optimistic After Repair Value (ARV). It was early 2022 when property prices were climbing, with low interest rates driving competition. Without thinking about a clear exit strategy, Harvey bought an $800k property. They kept negotiating between doing short-term rentals and flipping, but the property structure wasn’t suitable for either. Then the interest rates went up and the market softened. After 18 months of trying multiple strategies, they ultimately sold the house at a steep $70k loss.

The Most Common Wealth-Building Mistake Made by New Investors

All profits from investing should be reinvested to benefit from the compounding effect. Instead of treating profits as spending money, Will Harvey believes they should be used to acquire more assets and grow long-term wealth. Spending on luxury watches or cars may feel rewarding in the short term, but it works against the goal of building financial momentum.

“We all know how challenging it is to find good deals and make real money in this space. You don't want to throw it away on stuff that loses value the moment you buy it."

In Harvey’s observation, investors who build durable wealth treat profit as capital to be redeployed, not income to be spent.

How Would You Get Started Today with Only $100k?

WIll Harvey says he will begin his journey in the lending business. He would find a partner who brings a different set of strengths to the table.

Even if you don’t have capital, attend REIA meetings and networking events. You will find people who will bring the pieces of the puzzle you are missing. Figure out your strengths, define your value, and find people who fill the gaps.

You can connect with Harvey via his website Harvey Capital or reach out to him directly via email: will@harvey-capital.com.