An experienced builder and repeat QS borrower purchased this two-family home in Salem, MA for $560,000. He renovated the property and converted into two condominiums. They sold for a combined $944,900.
QS Private Lending provided $505,000 of financing: A $445,000 acquisition loan and a $60,000 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 285% return on his equity.
Investment Summary
Project Cost:
Purchase Price$560,000
Renovations$60,000
Closing Costs$12,600
Total Cost$632,600
Financing:
Acquisition Loan$445,000
Construction Loan$60,000
Equity$127,600
Total Financing$632,600
Return on Investment:
Gross Selling Price$944,900
Closing Costs($30,847)
Interest Expense($45,450)
Loan Repayment($505,000)
Net Profit$363,603
Return on Equity285%
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