Two-Family Home in Fitchburg, MA
A repeat FMC borrower purchased this two-family home in Fitchburg, MA for $205,000. She completed a renovation of the property and sold it for $420,000.
FMC Financial Group provided $219,000 of financing: A $184,000 acquisition loan and a $35,000 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 603% return on her equity investment.
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| Project Cost: | |
|---|---|
| Purchase Price | $205,000 |
| Renovations | $35,000 |
| Closing Costs |
$6,880 |
| Total Cost | $246,880 |
| Financing: | |
| Acquisition Loan | $184,000 |
| Construction Loan | $35,000 |
| Equity | $27,880 |
| Total Financing | $246,880 |
| Return on Investment: | |
| Gross Selling Price | $420,000 |
| Closing Costs | ($15,100) |
| Interest Expense | ($17,885) |
| Loan Repayment | ($219,000) |
| Net Profit | $168,015 |
| Return on Equity | 603% |