A new QS borrower purchased this two-family home in Milford, MA for $300,000. He renovated the property and sold it for $425,000.
QS Private Lending provided $275,000 of financing: A $240,000 acquisition loan and a $35,000 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 150% return on his investment.
Investment Summary
Project Cost:
Purchase Price$300,000
Renovations$35,000
Closing Costs$8,000
Total Cost$343,000
Financing:
Acquisition Loan$240,000
Construction Loan$35,000
Equity$68,000
Total Financing$343,000
Return on Investment:
Gross Selling Price$425,000
Closing Costs($15,250)
Interest Expense($33,000)
Loan Repayment($275,000)
Net Profit$101,750
Return on Equity150%
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