A new QS borrower purchased this single-family home in Fitchburg, MA for $158,900. He completed a renovation of the property and sold it for $375,000.
QS Private Lending provided $198,000 of financing: A $143,000 acquisition loan and a $55,000 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 650% return on his equity investment.
Investment Summary
Project Cost:
Purchase Price$158,900
Renovations$55,000
Closing Costs$6,460
Total Cost$220,360
Financing:
Acquisition Loan$143,000
Construction Loan$55,000
Equity$22,360
Total Financing$220,360
Return on Investment:
Gross Selling Price$375,000
Closing Costs($13,750)
Interest Expense($17,820)
Loan Repayment($198,000)
Net Profit$145,430
Return on Equity650%
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