An experienced builder and repeat QS borrower purchased this single-family home in Somerville, MA for $585,000.

He renovated the property and sold it for $1,250,000.

QS Private Lending provided $755,000 of financing: A $525,000 acquisition loan and a $230,000 construction loan. The loan was for 12 months at 14% interest. It was secured by a first mortgage on the property.

The borrower made a 382% return on his investment.

Investment Summary

Project Cost:
Purchase Price$585,000
Renovations$230,000
Closing Costs$17,600
Total Cost$832,600

Financing:
Acquisition Loan$525,000
Construction Loan$230,000
Equity$77,600
Total Financing$832,600

Return on Investment:
Gross Selling Price$1,250,000
Closing Costs($40,000)
Interest Expense($158,550)
Loan Repayment($755,000)
Net Profit$296,450
Return on Equity382%

Have you identified a property that you would like to acquire? Get pre-approved today, and make a more competitive offer!