A repeat QS borrower purchased this two-family home in Lynn, MA for $405,000. He completed a renovation of the property and sold it for $780,000.
QS Private Lending provided $499,000 of financing: A $324,000 acquisition loan and a $175,000 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 220% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$405,000
Renovations$175,000
Closing Costs$12,480
Total Cost$592,480
Financing:
Acquisition Loan$324,000
Construction Loan$175,000
Equity$93,480
Total Financing$592,480
Return on Investment:
Gross Selling Price$780,000
Closing Costs($25,900)
Interest Expense($49,900)
Loan Repayment($499,000)
Net Profit$205,200
Return on Equity220%
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