An experienced contractor and repeat QS borrower purchased this two-family home in Somerville, MA for $700,000. He renovated and expanded the apartments, converted them into condominiums and sold them for a combined $2.1 million.
QS Private Lending provided $1,005,000 of financing: A $630,000 acquisition loan and a $375,000 construction loan. The loan was for 12 months at 14% interest. It was secured by a first mortgage on the property.
The borrower made an 873% return on his investment.
Investment Summary
Project Cost:
Purchase Price$700,000
Renovations$375,000
Closing Costs $22,600
Total Cost$1,097,600
Financing:
Acquisition Loan$630,000
Construction Loan$375,000
Equity$92,600
Total Financing$1,097,600
Return on Investment:
Gross Selling Price$2,100,000
Closing Costs($65,500)
Interest Expense($164,150)
Loan Repayment ($1,005,000)
Net Profit$865,350
Return on Equity873%
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