A new QS borrower purchased this single-family home in Fitchburg, MA for $100,000. He completed a renovation of the property and sold it for $350,000.
QS Private Lending provided $175,000 of financing: An $80,000 acquisition loan and a $95,000 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 522% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$100,000
Renovations$95,000
Closing Costs$6,000
Total Cost$201,000
Financing:
Acquisition Loan$80,000
Construction Loan$95,000
Equity$26,000
Total Financing$201,000
Return on Investment:
Gross Selling Price$350,000
Closing Costs($13,000)
Interest Expense($26,250)
Loan Repayment($175,000)
Net Profit$135,750
Return on Equity522%
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