An experienced builder and repeat QS borrower purchased this single-family home in Ashland, MA for $331,000. He renovated the property and sold it for $535,000.
QS Private Lending provided $360,000 of financing: a $260,000 acquisition loan and a $100,000 construction loan. The loan was for 12 months at 12% interest and was secured by a first mortgage on the property.
The borrower made a 158% return on his investment.
Investment Summary
Project Cost:
Purchase Price$331,000
Renovations$100,000
Closing Costs$9,700
Total Cost$440,700
Financing:
Acquisition Loan$260,000
Construction Loan$100,000
Equity$80,700
Total Financing$440,700
Return on Investment:
Gross Selling Price$535,000
Closing Costs($18,500)
Interest Expense($28,800)
Loan Repayment($360,000)
Net Profit$127,650
Return on Equity158%
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