An experienced builder and new QS borrower with excellent credit purchased this two-family home in Somerville, MA for $900,000. He renovated the property and sold it for $1.3 million.
QS Private Lending provided $920,000 of financing: a $720,000 acquisition loan and a $200,000 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 114% return on his investment.
Investment Summary
Project Cost:
Purchase Price$900,000
Renovations$200,000
Closing Costs$20,900
Total Cost$1,120,900
Financing:
Acquisition Loan$720,000
Construction Loan$200,000
Equity$200,900
Total Financing$1,120,900
Return on Investment:
Gross Selling Price$1,300,000
Closing Costs($41,500)
Interest Expense($110,400)
Loan Repayment($920,000)
Net Profit$228,100
Return on Equity114%
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