An experienced builder and repeat QS borrower purchased this two-family home in Somerville, MA for $1,100,000.

He renovated the property and sold it for $1,400,000.

QS Private Lending provided $950,000 of financing: An $800,000 acquisition loan and a $150,000 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 97% return on his investment.

Investment Summary

Project Cost:
Purchase Price$1,100,000
Renovations$150,000
Closing Costs$21,500
Total Cost$1,271,500

Financing:
Acquisition Loan$800,000
Construction Loan$150,000
Equity$321,500
Total Financing$1,271,500

Return on Investment:
Gross Selling Price$1,400,000
Closing Costs($44,500)
Interest Expense($95,000)
Loan Repayment($950,000)
Net Profit$310,500
Return on Equity97%

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