Home / Categories / Real Estate Investing / Apartment on Algirdo Street, Vilnius
Unfortunately, this deal expired 31.05.2024
28 days ago

Apartment on Algirdo Street, Vilnius

/ max. 115,000 

About This Deal

The project "Apartment on Algirdo Street, Vilnius" from the country Lithuania is raising investments in the amount of 115,000 euros for Real Estate acquisition with an expected annual return of 9.2-11.2%. The loan term is 12 months, meaning the period for the borrower to repay the loan amount and interest. In this case, the borrower must repay the loan within 12 months after receiving the loan.

The project's risk level on the platform is indicated as B-. The platform's website states that there are 10 different risk ratings ranging from "A+" to "D". Around 9% of projects on the platform have ratings of "A+", "A", "A-", while the majority, about 58%, are rated "B+", "B", "B-". There are also projects with ratings "C+", "C", "C-", comprising around 30%, and the remaining projects are rated D. Ratings A and B indicate lower expected investment risk compared to investing in credits with ratings C or D, but the returns will be lower if investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 68%. The LTV ratio (the ratio of the loan amount to the market value of the collateral) is an important indicator in the financial sector, especially in collateralized lending. In this case, an LTV of 68% indicates that the loan amount is 68% of the current market value of the collateral (likely real estate or another asset). Such LTV restrictions are set to reduce risks for the lender and ensure a more stable financial position for the project. For example, the lower the LTV, the lower the risk of default, as the borrower has more equity in the project.

The internal project number is P00001235 on the licensed crowdfunding platform Profitus from Lithuania. The platform states that they obtained a license in November 2023 from the European crowdfunding regulator ESMA. The ESMA license is quite complex, as out of over 1000 platforms in Europe at the beginning of 2024, only 150 managed to obtain this license.

Please note that the platform specifies that this information should not be construed as a recommendation, advice, or invitation to use a specific investment service and is not considered the basis or part of subsequent transactions. Investing always carries the risk of losing part or all of the investments. I agree with Profitus platform and also recommend approaching investment responsibly by diversifying your investments.

Why do you think it is worth considering investing in this project, especially as someone with limited investment experience from Greece, focusing on Real Estate acquisition in Lithuania?
What do you think is a reasonable amount to invest in this project?