Single-Family Home in Fitchburg, MA
A new FMC borrower purchased this single-family home in Fitchburg, MA for $100,000. He completed a renovation of the property and sold it for $350,000.
FMC Financial Group provided $175,000 of financing: An $80,000 acquisition loan and a $95,000 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 522% return on his equity investment.
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| Project Cost: | |
|---|---|
| Purchase Price | $100,000 |
| Renovations | $95,000 |
| Closing Costs |
$6,000 |
| Total Cost | $201,000 |
| Financing: | |
| Acquisition Loan | $80,000 |
| Construction Loan | $95,000 |
| Equity | $26,000 |
| Total Financing | $201,000 |
| Return on Investment: | |
| Gross Selling Price | $350,000 |
| Closing Costs | ($13,000) |
| Interest Expense | ($26,250) |
| Loan Repayment | ($175,000) |
| Net Profit | $135.750 |
| Return on Equity | 522% |