An experienced builder and repeat QS borrower purchased this three-family home in Everett, MA for $536,550. He renovated the property and sold it for $840,000.
QS Private Lending provided $585,000 of financing: A $460,000 acquisition loan and a $125,000 construction loan. The loan was for 12 months at 14% interest and was secured by a first mortgage on the property.
The borrower made a 183% return on his investment.
Investment Summary
Project Cost:
Purchase Price$536,550
Renovations$125,000
Closing Costs$14,200
Total Cost$675,750
Financing:
Acquisition Loan$460,000
Construction Loan$125,000
Equity$90,750
Total Financing$675,750
Return on Investment:
Gross Selling Price$840,000
Closing Costs($27,700)
Interest Expense($61,425)
Loan Repayment($585,000)
Net Profit$165,875
Return on Equity183%
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