An experienced builder and repeat QS borrower purchased this four-family home in Somerville, MA for $1.15 million. He renovated the property and converted into four condominiums. They sold for a combined $2,745,000.
QS Private Lending provided $1.53 million of financing: An $860,000 acquisition loan and a $670,000 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 307% return on his investment.
Investment Summary
Project Cost:
Purchase Price$1,150,000
Renovations$670,000
Closing Costs$33,100
Total Cost$1,853,100
Financing:
Acquisition Loan$860,000
Construction Loan$670,000
Equity$323,100
Total Financing$1,853,100
Return on Investment:
Gross Selling Price$2,745,000
Closing Costs(84,850)
Interest Expense(137,700)
Loan Repayment(1,530,000)
Net Profit$992,450
Return on Equity307%
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