Real Estate Crowdfunding
The "Corner Hotel V" project from Lithuania is raising investments of 55,200 euros for Real Estate acquisition with an expected annual return of 10.5-11.5%. The loan term is 18 months, meaning the borrower must repay the loan amount and interest within 18 months after receiving the loan. The project's risk level on the platform is indicated as B-. Ratings of 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 57%, which is within the established maximum value of 61%. 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 lending against collateral. In this case, an LTV of 57% indicates that the loan amount is 57% of the current market value of the collateral (likely real estate or another asset). Such LTV constraints are set to reduce risks for the lender and ensure a more stable financial position of 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 P00001163-5 on the licensed crowdfunding platform Profitus from Lithuania. Please note that 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 involves 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 European Union countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.
