Case Study of Single Family Fix and Flip in Peabody MA

A new QS borrower purchased this single-family home in Peabody, MA for $283,500. He renovated the property and sold it for $525,000.

QS Private Lending provided $280,000 of financing: A $215,000 acquisition loan and a $65,000 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 270% return on his investment.

Investment Summary

Project Cost:
Purchase Price$283,500
Renovations$65,000
Closing Costs$8,100
Total Cost$356,600

Financing:
Acquisition Loan$215,000
Construction Loan$65,000
Equity$76,600
Total Financing$356,600

Return on Investment:
Gross Selling Price$525,000
Closing Costs($18,250)
Interest Expense($19,600)
Loan Repayment($280,000)
Net Profit$207,150
Return on Equity270%

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