Real Estate Investing
The Corner Hotel_antique V project from Lithuania is raising investments amounting to 80200 euros for Real Estate acquisition with an expected annual return of 12.5-14.5%. The minimum investment amount is 100 euros.
The loan term is 6 months, which means the period for the borrower to repay the borrowed amount and the interest on the loan. In this case, the borrower must repay the loan within 6 months after receiving the loan.
The project's risk level on the platform is indicated as C-. 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 a majority of projects, about 58%, have ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", comprising around 30%, with the remaining projects rated D. Ratings of A and B suggest that the expected investment risk is lower than investing in credits with ratings of C or D, but the returns will be lower accordingly if you invest in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 75%, which is within the set maximum value of 84%. 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 75% indicates that the loan amount is 75% of the current market value of the collateral (likely real estate or another asset). Such LTV restrictions are set to reduce risks for the creditor and ensure a more stable financial position for the project. For example, the lower the LTV, the lower the default risk, as the borrower has more equity in the project.
The internal project number is P00001164-5 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, 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.
