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Unfortunately, this deal expired 03.05.2024
2 months ago

Case in the Vasara II neighborhood

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Real Estate Investing

The project Case in the Vasara II neighborhood from Lithuania is raising investments in the amount of 30,000 euros for Real Estate acquisition with an expected annual return of 8.6-10.6%. The loan term is 18 months, meaning the period for the borrower to repay the loan amount and interest. In this case, the borrower must repay the loan within 18 months after receiving the loan.

The project's risk level on the platform is indicated as B. Ratings A and B suggest that the expected investment risk is lower than investing in loans with ratings C or D, but the return will be lower accordingly if you invest in projects with a lower risk level.

The project has a Loan-to-Value (LTV) ratio of 26%, which is within the established maximum value of 79%. The Loan-to-Value 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 26% indicates that the loan amount is 26% 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. 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 P00001216-2 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, the platform specifies that this information cannot 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 investment responsibly by diversifying your investments.

In your opinion, why should I consider investing in this project, given my lack of experience in financial matters, with the investment goal being Real Estate acquisition in Lithuania?
What's the ballpark figure you're comfortable investing in this project?