An experienced builder and repeat QS borrower purchased two adjacent homes in Northboro, MA for a combined price of $435,000. He renovated the properties and sold both for a total of $770,000.
QS Private Lending provided $500,000 of financing: a $345,000 acquisition loan and a $155,000 construction loan. The loan was for 12 months at 12% interest and was secured by a first mortgage on each property.
The borrower made a 209% return on his investment.
Investment Summary
Project Cost:
Purchase Price$435,500
Renovations$155,000
Closing Costs$12,500
Total Cost$602,500
Financing:
Acquisition Loan$345,000
Construction Loan$155,000
Equity$102,500
Total Financing$602,500
Return on Investment:
Gross Selling Price$770,000
Closing Costs($25,600)
Interest Expense($30,000)
Loan Repayment($500,000)
Net Profit$214,400
Return on Equity209%
Have you identified a property that you would like to acquire? Contact us today, and make a more competitive offer!
