Corner Hotel VII

The Corner Hotel VII project from Lithuania is raising investments of 100,000 euros for Working capital with an expected annual return of 10.5-11.25%. The minimum investment amount is 100 euros.

The loan term is 18 months, meaning the period for the borrower to repay the borrowed amount and interest on the loan. 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-. The platform's website states that there are 10 different risk ratings ranging from "A+" to "D". Risk ratings are intended to provide a better understanding of the project's riskiness. Ratings of A and B indicate that the expected investment risk is lower than when investing in loans with ratings of C or D, but the return will be correspondingly lower if you invest in projects with a lower risk level.

The project has a Loan-to-Value (LTV) ratio of 60%, which is within the established maximum value of 61%. 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 P00001163-7 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 at the beginning of 2024, only 150 managed to obtain this license.

Please note that the platform states 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 Profitus platform and also recommend approaching investment responsibly by diversifying your investments.