Single-Family Home in Palmer, MA
A new FMC borrower purchased this single-family home in Palmer, MA for $120,000. He completed a renovation of the property and sold it for $310,000.
FMC Financial Group provided $152,000 of financing: A $102,000 acquisition loan and a $50,000 construction loan. The loan was for 12 months at 13% interest. It was secured by a first mortgage on the property.
The borrower made a 551% return on his equity investment.
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| Project Cost: | |
|---|---|
| Purchase Price | $120,000 |
| Renovations | $50,000 |
| Closing Costs |
$5,540 |
| Total Cost | $175,540 |
| Financing: | |
| Acquisition Loan | $102,000 |
| Construction Loan | $50,000 |
| Equity | $23,540 |
| Total Financing | $175,540 |
| Return on Investment: | |
| Gross Selling Price | $310,000 |
| Closing Costs | ($11,800) |
| Interest Expense | ($16,467) |
| Loan Repayment | ($152,000) |
| Net Profit | $129.733 |
| Return on Equity | 551% |