An experienced builder and repeat QS borrower purchased this single-family home in Plymouth, MA for $145,000. He renovated the property and sold it for $278,000.
QS Private Lending provided $195,000 of financing: a $130,000 acquisition loan and a $65,000 construction loan. The loan was for 12 months at 14% interest and was secured by a first mortgage on the property.
The borrower made a 252% return on his investment.
Investment Summary
Project Cost:
Purchase Price$145,000
Renovations$65,000
Closing Costs$6,400
Total Cost$216,400
Financing:
Acquisition Loan$130,000
Construction Loan$65,000
Equity$21,400
Total Financing$216,400
Return on Investment:
Gross Selling Price$278,000
Closing Costs($10,840)
Interest Expense($18,200)
Loan Repayment($195,000)
Net Profit$53,960
Return on Equity252%
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