An experienced builder and new QS borrower purchased this single-family home in Gardner, MA for $75,000. He renovated the property and sold it for $201,000.
QS Private Lending provided $90,000 of financing: A $60,000 acquisition loan and a $30,000 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 494% return on his investment.
Investment Summary
Project Cost:
Purchase Price$75,000
Renovations$30,000
Closing Costs$4,300
Total Cost$109,300
Financing:
Acquisition Loan$60,000
Construction Loan$30,000
Equity$19,300
Total Financing$109,300
Return on Investment:
Gross Selling Price$201,000
Closing Costs($8,530)
Interest Expense($7,200)
Loan Repayment($90,000)
Net Profit$95,270
Return on Equity494%
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