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Unfortunately, this deal expired 06.06.2024
22 days ago
8

Biciuliai House XV

100 
/ max. 77,410 

About This Deal

The Biciuliai House XV project from Lithuania is raising investments in the amount of 77410 euros for Real Estate development with an expected annual return of 12-13.5%. The loan term is 9 months, meaning the period for the borrower to repay the borrowed amount and interest on the loan. In this case, the borrower must repay the loan within 9 months after receiving the loan.

The project's risk level on the platform is indicated as D. The platform's website states that there are 10 different risk ratings ranging from "A+" to "D". Projects with ratings "A+", "A", "A-" account for about 9% on the platform, while projects with ratings "B+", "B", "B-" make up the majority at 58%. There are also projects with ratings "C+", "C", "C-", comprising around 30%, with the remaining projects having a rating of D. Risk ratings are intended to provide a better understanding of the project's riskiness. Ratings A and B indicate that the expected investment risk is lower than when investing in loans with ratings C or D, but the return will be correspondingly lower if you invest in projects with a lower risk level.

The project has a Loan-to-Value (LTV) ratio of 80%, which is within the established maximum value of 85%. The maximum allowable LTV value for the project is 85%, which may be a limitation or standard requirement for this type of financing. 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 P00000799-15 on the licensed crowdfunding platform Profitus from Lithuania. The platform indicates that they obtained a license in November 2023 from the European crowdfunding regulator ESMA.

Please note, the platform states that this information should not be construed as a recommendation, indication, 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. In the European Union countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.

What are your thoughts on the feasibility of investing in this project of Real Estate development in Lithuania?
How much money would you be willing to invest in this project if everything goes well?