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I'm pretty sure the general consensus that Corian is below Granite. In regards to what type of countertops are standard for new construction I don't believe there is a general rule here. There are several variables dependent to each local market. I've seen some new construction housing around here with higher end laminate countertops and others with natural stones.

I plan on visiting several of the model homes in the newer subdivisions that are going up in my area to get a feel for what type of materials are being used around the house (c-tops, flooring, windows, heat pumps, etc). That way I know how far to go when remodeling an older home in an established neighborhood. I want to be competitive without over improving and again I don't think there is a general rule you can follow. You just have to get out there and see what the new construction competition is up to.

Roanimare,

I was in my local Home Depot yesterday pricing out countertops and noticed their pricing for granite countertops. Of course their counter tops are all special order and the prices increased as the complexity of the colors increased. Another factor that increased the price per square foot was the design of the edge. I think there is a company to the south of my town that offers a yard where you can pick out slabs, many years ago I recall driving by them every time we went on a trip to Myrtle Beach. I'm curious how the prices of specialty shop like the one you mention compare to ordering a granite top at a big box store (Lowe's, Home Depot, etc). Any thoughts in your local market? Thanks.

p.s. the guy working in the dept was busy working up a quote for another customer so I didn't get a chance to ask him about install prices but curious what you pay in your area to have a granite top installed? Thanks again.

I feel what your saying here. When crunching the numbers using the 70% value it cuts it close. If there happens to be something wrong with the property this could drastically impact my bottom line in a negative way. I will continue to work numbers on other upcoming properties looking for one with a bit more equity to be had when purchased. A big unknown for me is the potential fees that are associated with selling a home. I definitely need to look more into what the actual selling fees are to have a better feel for what kind of fees will be deducted from my bottom line. I'm working on finding a real estate agent in my area that is willing to work with me and my objectives. Anyhow thanks again for the input.

That is just my personal opinion of what the property might sell for. Of course it could go for much higher 180k - 200k. Again I'm very new to the scene and was kind of putting a cap on what I could theortically offer on the property while still turning a profit based on a worst case scenario hard money loan. Ultimately I probably will bid on the properties that are priced under 100k. The entire process of purchasing an auction property with the site being pretty much unseen (save for the exterior). But going for those lower priced properties will do wonders for my piece of mind. As long as there is room for profit of course.

Let me say again that I am new but I did add in the cost of acquiring the money into my figures. I used various samples of hard money loans that I've seen across the web from various hard money lender sites. Below is the information I used to get my estimate for the cost to receive a worst case loan ...

ARV: $230,000
Purchase Price: $165,000 at auction (includes excise tax and court costs)
Money for Repairs: $5,000
Loan Amount: $161,000 (70% LTV)
Interest Paid: 18%
Monthly Interest Payment: $2,415/mo (cost to hold for 60 days $4,830)
10 Points: $16,100 (1 point cost equaling 1% loan amount or $1,610 in this ex.)
Hazard/Builders Ins, Escrow Fee, Draw Inspections, Title/Attorney Fee, Lender's Title Policy, Owner's Title Policy, Processing Fee, City/County Tax Stamps, State Tax Stamps, Assignment Fee, Appraisal Fee: $3,500

So at time of closing or in this case full payment of bid amount to attorney ...

$4,000 to purchase (out of pocket)
$161,000 hard money loan
======
$165,000 purchase price (includes excise tax and court costs)

$16,100 10 points
$3,500 loan fees (as detailed above)
======
$19,600 total cost to get hard money loan (all out of pocket)

$5000 repairs to home (out of pocket)

$13,800 total money in selling fees including agent's commission

Total out of pocket investment $28,600 (4k + 19.6k + 5k)

$230,000 Retail Sale Price
-$13,800 Selling fees
-$161,000 repayment of loan
-$5,000 repair costs (out of pocket)
-$4,000 money needed to purchase property (out of pocket)
-$19,600 costs to get 161k hard money loan (out of pocket)
-$4,830 interest payments for 60 days
======
$21,770 potential profit

Looking back over my costs to hold the property I ommited the utilities expense which should come in under 1k, but even at that my potential profit could still be right around 20k which is slightly less than 10% of the ARV which is going to be my goal for my first property.

Note: I see a calculation issue in my figures. Auctions here in NC to the best of my knowledge require cash of 5% down which would be all out of pocket. So in this case my out of pocket to purchase would be $8,938 (5% down of $164,000 purchase price would be $8,200 and I would have to pay the excise tax/court costs of $738). That would add about another $5k to my out of pocket expenses also dropping the price of the hard money loan needed ever so slightly. Still my bottom line profit after retailing the property would be in the $15k-20k range which is where I want to be.

Did I miss anything when making my figures? Does anyone have an experience working with hard money lenders in particular here in North Carolina? Thanks.

I'm going to be visiting my county courthouse this week to watch the preceedings of several foreclosed properties. I had planned to just watch and ask questions but a few of the properties look like that have a good amount of equity in them.

Below is a copy of the legal notice. I'm not sure if I understand the wording 100% and have some questions about it and how it relates to the foreclosure process here in North Carolina ...

In addition to the winning bid purchase price I would be responsible for the excise tax and court cost. For example if the winning bid was $100,000 I would end up paying $450 in tax and court costs?
Since no personal checks are allowed does this mean I have to bring cash to the auction? Are the funds paid to the attorney handling the auction or they paid to clerk of courts or something? Is it normal practice to get a cashiers check for 5k or so as was indicated in another thread and sign it over if I have the winning bid?
I'm guessing I have 10 business days to pay off the remaining balance.
Since I can't gain access to property prior to the auction I'm purchasing it pretty much unseen since I can only view it from a distance from the exterior. Also any effects or personal property left at the described lot will now transfer to the winning bidder? Does this include cars that are left in the driveway or backyard?
I did look up the properties and to the best of my knowledge it is the first mortgage that is being foreclosed on (VA Loans for two of them). There aren't any deliquent property taxes on the properties so that is a plus. I'm not sure what other kind of liens I would have to be concerned with if it is indeed the first mortgage that is being foreclosed since it wipes out junior liens (2nds, mechanics, etc). Or am I missing something?

One last bit is about the current resident. In 3 out of the 4 properties that are coming up for auction there are people still living in the properties. What happens to them after the auction, redemption period passes and they don't file bankruptcy or bring their loan current? If they are still in the house when the deed effectively transfers to me I guess I could give them a friendly notice to move themselves and their possessions quickly. I would think approaching them negatively could only incite them and in some cases cause them to vandalize the place before leaving. I dunno maybe worst case thoughts there.

Woah, got a little off track there. Anyhow if you are in North Carolina and have had any experience with these foreclosure auctions any help would be greatly appreciated. Thanks.

I'm curious if anyone has had any experience working with hard money lenders that offer non-doc loans for rehabs?

I have had no verifable income since 2004 but do have have a sizeable amount of money in the bank (50k+). I understand that non-doc loans typically cost more upfront as well as being hit by more points than usual as well as the getting the worst interest rates around.

I'm trying to get into REI in my area and there are several foreclosed properties that are coming up for auction at the courthouse that have a good amount of equity in them. One of the more expensive homes in my area for auction will probably go for about 160k at the auction. It should retail for about 230k according to recent sales.

I ran some numbers for worst case scenario and there is still a sizeable profit. Even with 10 points (nearly 20k for purchasing fees), carrying the property for 60 days at 18% interest, loan purchase fees, 5k in repair (probably overkill considering the house is less than 2 years old and in outstanding condition from the exterior) and selling fees (6%) I could still stand to profit about 21k.

Anyhow getting back to my question ...

Does anyone have any experience getting non-doc loans for rehabs from hard money lenders to be used to purchase foreclosed properties? Thanks.

Every bit of literature that I have read stresses getting involved with your local REI club. I know here in Jacksonville, NC there are a lot of investors but I haven't been able to come across any REI clubs. Well at least not through internet searches. I'm curious to find out what clubs are available in my area? Does anyone know of any REI clubs in eastern NC? If I tried contacting the local board of realtors do you think they would be helpful in find a local REI club? Thanks.

Hello everyone! I'm an aspiring real estate investor living in Jacksonville, NC. I've been lurking in several other REI forums for quite some time and it wasn't until recently I stumbled across this forum. This biggerpockets forum appears outstanding! There are several great discussions that have been very eye opening and informative. I have read a few different books about real estate investing but have no actual deals under my belt. I hope to learn a ton through these boards. Hopefully you all can help me get over the "fear of getting started" hurdle. Anyhow thanks for having me!