A repeat QS borrower purchased this single-family home in Worcester, MA for $100,000. He completed a renovation of the property and sold it for $298,000.
QS Private Lending provided $180,000 of financing: An $80,000 acquisition loan and a $100,000 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 323% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$100,000
Renovations$100,000
Closing Costs$6,100
Total Cost$206,100
Financing:
Acquisition Loan$80,000
Construction Loan$100,000
Equity$27,400
Total Financing$206,100
Return on Investment:
Gross Selling Price$298,000
Closing Costs($11,440)
Interest Expense($18,000)
Loan Repayment($180,000)
Net Profit$88,560
Return on Equity323%
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