An experienced builder and new QS borrower purchased this two-family home in Somerville, MA for $775,000.
He renovated the property and converted into two condominiums. They sold for a combined $1,439,900.
QS Private Lending provided $790,000 of financing: A $620,000 acquisition loan and a $170,000 construction loan. The loan was for 12 months at 12% interest. It was secured by a first mortgage on the property.
The borrower made a 299% return on his investment.
Investment Summary
Project Cost:
Purchase Price$775,000
Renovations$170,000
Closing Costs$18,300
Total Cost$963,300
Financing:
Acquisition Loan$620,000
Construction Loan$170,000
Equity$173,300
Total Financing$963,300
Return on Investment:
Gross Selling Price$1,439,900
Closing Costs(45,697)
Interest Expense($86,900)
Loan Repayment(790,000)
Net Profit$517,303
Return on Equity299%
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