An experienced builder and repeat QS borrower purchased this three-family home in Lynn, MA for $370,000. He renovated the property with his own funds (approximately $50,000) and sold it for $550,000.
QS Private Lending provided a $330,000 acquisition loan. The loan was for 12 months at 14% interest and was secured by a first mortgage on the property.
The borrower made a 168% return on his investment.
Investment Summary
Project Cost:
Purchase Price$370,000
Renovations$50,000
Closing Costs$9,100
Total Cost$429,100
Financing:
Acquisition Loan$330,000
Equity$99,100
Total Financing$429,100
Return on Investment:
Gross Selling Price$550,000
Closing Costs($19,000)
Interest Expense($34,650)
Loan Repayment($330,000)
Net Profit$166,350
Return on Equity168%
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