A new QS borrower purchased this single-family home in New Bedford, MA for $195,000. He completed a renovation of the property and sold it for $316,000.
QS Private Lending provided $187,000 of financing: A $156,000 acquisition loan and a $31,000 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 230% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$195,000
Renovations$31,000
Closing Costs$6,240
Total Cost$232,240
Financing:
Acquisition Loan$156,000
Construction Loan$31,000
Equity$45,240
Total Financing$232,240
Return on Investment:
Gross Selling Price$316,000
Closing Costs($11,980)
Interest Expense($13,090)
Loan Repayment($187,000)
Net Profit$103,930
Return on Equity230%
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