A new QS borrower purchased this single-family home in Framingham, MA for $400,000. He completed a renovation of the property and sold it for $640,000.
QS Private Lending provided $395,000 of financing: A $320,000 acquisition loan and a $75,000 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 230% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$400,000
Renovations$75,000
Closing Costs$10,400
Total Cost$485,400
Financing:
Acquisition Loan$320,000
Construction Loan$75,000
Equity$90,400
Total Financing$485,400
Return on Investment:
Gross Selling Price$640,000
Closing Costs($21,700)
Interest Expense($15,800)
Loan Repayment($395,000)
Net Profit$207,500
Return on Equity230%
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