Real Estate Development
The Bicycle houses XI project from Lithuania is raising investments amounting to 90,000 euros for Real Estate development with an expected annual return of 12.8-14.8%. The minimum investment amount is 100 euros.
The loan term is 12 months, meaning the period for the borrower to repay the borrowed sum and the interest on the loan. 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 D. The platform 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%, have ratings of "B+", "B", "B-". There are also fewer projects with ratings of "C+", "C", "C-", approximately 30%, and the rest of the projects have a D rating. Risk ratings are intended to provide a better understanding of the project's riskiness.
The project has a Loan-to-Value (LTV) ratio of 80%, which is within the set maximum value of 85%. LTV ratio (the loan amount compared to the collateral's market value) is an important indicator in finance, especially in collateral-based lending. An LTV of 80% indicates that the loan amount is 80% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV value for the project is 85%, which may be a restriction or standard requirement for this type of financing.
The internal project number P00000799-11 is 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. The ESMA license is quite complex, as out of over 1000 platforms in Europe in early 2024, only 150 managed to obtain this license.
Please note, the platform mentions 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 the Profitus platform and also recommend approaching investments responsibly by diversifying your investments. In EU countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.
