Real Estate Development
The project D12 II from Lithuania is raising investments amounting to 184,100 euros for Real Estate development with an expected annual return of 9.2-10.7%. The minimum investment amount is 100 euros.
The loan term is 12 months, indicating 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 12 months after receiving the loan.
The project's risk level on the platform is indicated as B-. Around 9% of projects on the platform have ratings of "A+", "A", "A-", while a significant portion, about 58%, are projects with ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", comprising around 30%, and the remaining projects have ratings of D. Risk ratings are intended to provide a better understanding of the project's riskiness. Ratings A and B suggest that the presumed investment risk is lower than when investing in credits with ratings C or D, but the profitability will be correspondingly lower if you invest in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 47%, which is within the established maximum value of 70%. 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 47% indicates that the loan amount is 47% of the current market value of the collateral (likely real estate or another asset). The maximum permissible LTV value for the project is 85%, which may be a restriction or standard requirement for this type of lending.
The internal project number is P00001174-2 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 that the platform specifies that this information cannot be interpreted 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.
