A repeat QS borrower purchased this single-family home in Fitchburg, MA for $155,000. He completed a renovation of the property and sold it for $265,000.
QS Private Lending provided $169,000 of financing: A $139,000 acquisition loan and a $30,000 construction loan. The loan was for 12 months at 14% interest. It was secured by a first mortgage on the property.
The borrower made a 346% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$155,000
Renovations$30,000
Closing Costs$5,880
Total Cost$190,880
Financing:
Acquisition Loan$139,000
Construction Loan$30,000
Equity$21,880
Total Financing$190,880
Return on Investment:
Gross Selling Price$265,000
Closing Costs($10,450)
Interest Expense($9,858)
Loan Repayment($169,000)
Net Profit$75,692
Return on Equity346%
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