An experienced builder and new QS borrower purchased this two-family home in Somerville, MA for $1,115,000. He renovated the property and converted into two condominiums. They sold for a combined $1,390,000.
QS Private Lending provided $920,000 of financing: An $890,000 acquisition loan and a $30,000 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 158% return on his equity.
Investment Summary
Project Cost:
Purchase Price$1,115,000
Renovations$30,000
Closing Costs$20,900
Total Cost$1,165,900
Financing:
Acquisition Loan$890,000
Construction Loan$30,000
Equity$245,900
Total Financing$1,165,900
Return on Investment:
Gross Selling Price$1,390,000
Closing Costs($44,200)
Interest Expense($36,800)
Loan Repayment($920,000)
Net Profit$389,000
Return on Equity158%
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