The Corner Hotel Reserve II project from Lithuania is raising investments in the amount of 265,000 euros for Real Estate acquisition with an expected annual return of 12.5-14.5%. The loan term is 6 months, meaning the period for the borrower to repay the loan amount and interest. 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-. On the platform, there are around 9% of projects with ratings "A+", "A", "A-", the majority of projects with ratings "B+", "B", "B-" at 58%. There are also projects with ratings "C+", "C", "C-", around 30%, and the remaining projects with rating D. Ratings A and B indicate a lower expected investment risk compared to investing in loans with ratings C or D, but the profitability will be lower if you invest in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 68%, which is within the maximum value of 84%. The maximum allowable LTV value for the project is 85%, which may be a limitation or standard requirement for this type of financing.
The internal project number is P00001164-2 on the licensed crowdfunding platform Profitus from Lithuania.
Please note, the platform states that this information should not be construed as a recommendation, advice, or invitation to avail of 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. Crowdfunding is not prohibited by the Deposit Insurance and Investment Liability Act in EU countries.