Two-Family Home in Providence, RI
A new FMC borrower purchased this two-family home in Providence, RI for $210,000. He completed a renovation of the property and sold it for $362,000.
FMC Financial Group provided $222,000 of financing: A $189,000 acquisition loan and a $33,000 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 398% return on his equity investment.
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| Project Cost: | |
|---|---|
| Purchase Price | $210,000 |
| Renovations | $33,000 |
| Closing Costs |
$6,940 |
| Total Cost | $249,940 |
| Financing: | |
| Acquisition Loan | $189,000 |
| Construction Loan | $33,000 |
| Equity | $27,940 |
| Total Financing | $249,940 |
| Return on Investment: | |
| Gross Selling Price | $362,000 |
| Closing Costs | ($13,360) |
| Interest Expense | ($15,540) |
| Loan Repayment | ($222,000) |
| Net Profit | $111,100 |
| Return on Equity | 398% |