An experienced builder and repeat QS borrower purchased this two-family home in Somerville, MA for $995,000.
He renovated the property and converted into two condominiums. They sold for a combined $1,334,000.
QS Private Lending provided $1,095,000 of financing: An $895,000 acquisition loan and a $200,000 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 24% return on his investment.
Investment Summary
Project Cost:
Purchase Price$995,000
Renovations$200,000
Closing Costs$24,400
Total Cost$1,219,400
Financing:
Acquisition Loan$895,000
Construction Loan$200,000
Equity$124,400
Total Financing$1,219,400
Return on Investment:
Gross Selling Price$1,334,000
Closing Costs($42,520)
Interest Expense($166,075)
Loan Repayment($1,095,000)
Net Profit$30,405
Return on Equity24%
Have you identified a property that you would like to acquire? Contact us today, and make a more competitive offer!
