My financing partner / cash buyer said he's looking for distressed properties that appraises at 65% ARV. What does he mean by "appraises at 65% ARV"?

First off, ARV stands for After Repair Value. This is the estimated future price the subject property will sell at once it has been renovated.

Your financing partner / cash buyer is that that he wants to buy distressed property at the price of 65% of the After Repair Value (ARV)

If the ARV of a property is $500,000, then he/she is looking to buy the property (with the wholesale fee included) at the price of $325,000. This is because $325,000 is 65% of $500,000.

To do this calculation, you can multiply $500,000 X .65 = $325,000, which is 65% of the ARV.