A repeat QS borrower purchased this two-family home in Fitchburg, MA for $205,000. She completed a renovation of the property and sold it for $420,000.
QS Private Lending provided $219,000 of financing: A $184,000 acquisition loan and a $35,000 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 603% return on her equity investment.
Investment Summary
Project Cost:
Purchase Price$205,000
Renovations$35,000
Closing Costs$6,880
Total Cost$246,880
Financing:
Acquisition Loan$184,000
Construction Loan$35,000
Equity$27,880
Total Financing$246,880
Return on Investment:
Gross Selling Price$420,000
Closing Costs($15,100)
Interest Expense($17,885)
Loan Repayment($219,000)
Net Profit$168,015
Return on Equity603%
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