An experienced builder and repeat QS borrower purchased this single-family home in Osterville, MA for $295,000.
He renovated the property and sold it for $555,000.
QS Private Lending provided $295,000 of financing: A $265,000 acquisition loan and a $30,000 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 573% return on his investment.
Investment Summary
Project Cost:
Purchase Price$295,000
Renovations$30,000
Closing Costs$8,400
Total Cost$333,400
Financing:
Acquisition Loan$265,000
Construction Loan$30,000
Equity$38,400
Total Financing$333,400
Return on Investment:
Gross Selling Price$555,000
Closing Costs(19,150)
Interest Expense(20,650)
Loan Repayment(295,000)
Net Profit$220,200
Return on Equity573%
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