An experienced builder and repeat QS borrower purchased this single-family home in Worcester, MA for $117,900. He renovated the property and sold it for $261,400.
QS Private Lending provided $140,000 of financing: A $90,000 acquisition loan and a $50,000 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 494% return on his investment.
Investment Summary
Project Cost:
Purchase Price$117,900
Renovations$50,000
Closing Costs$5,300
Total Cost$173,200
Financing:
Acquisition Loan$90,000
Construction Loan$50,000
Equity$33,200
Total Financing$173,200
Return on Investment:
Gross Selling Price$261,400
Closing Costs($10,342)
Interest Expense($7,000)
Loan Repayment($140,000)
Net Profit$104,058
Return on Equity313%
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