A new QS borrower purchased this single-family home in Worcester, MA for $170,000. She completed a renovation of the property and sold it for $300,000.
QS Private Lending provided $188,000 of financing: A $153,000 acquisition loan and a $35,000 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 404% return on her equity investment.
Investment Summary
Project Cost:
Purchase Price$170,000
Renovations$35,000
Closing Costs$6,260
Total Cost$211,260
Financing:
Acquisition Loan$153,000
Construction Loan$35,000
Equity$23,260
Total Financing$211,260
Return on Investment:
Gross Selling Price$300,000
Closing Costs($11,500)
Interest Expense($6,580)
Loan Repayment($188,000)
Net Profit$93,920
Return on Equity404%
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