An experienced builder and repeat QS borrower purchased this two-family home in Leicester, MA for $103,000. He renovated the property and sold it for $260,000.
QS Private Lending provided $155,000 of financing: an $80,000 acquisition loan and a $75,000 construction loan. The loan was for 12 months at 12% interest and was secured by a first mortgage on the property.
The borrower made a 282% return on his investment.
Investment Summary
Project Cost:
Purchase Price$103,000
Renovations$75,000
Closing Costs$5,600
Total Cost$183,600
Financing:
Acquisition Loan$80,000
Construction Loan$75,000
Equity$28,600
Total Financing$183,600
Return on Investment:
Gross Selling Price$260,000
Closing Costs($10,300)
Interest Expense($13,950)
Loan Repayment($155,000)
Net Profit$183,600
Return on Equity282%
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