Evening Alley XII

The Evening Alley XII project from Lithuania is raising investments of 200,000 euros for Real Estate development with an expected annual return of 12-14%. The loan term is 12 months, meaning the borrower must repay the loan amount and interest within 12 months after receiving the loan.

The project's risk level on the platform is rated C-. The platform lists 10 different risk ratings from "A+" to "D". Projects with ratings "A+", "A", "A-" account for about 9%, while projects with ratings "B+", "B", "B-" make up the majority at 58%. There are also projects with ratings "C+", "C", "C-", comprising around 30%, with the remaining projects rated D. Ratings A and B indicate lower investment risk compared to investing in C or D rated loans, but the returns will be lower when investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 51%, which falls within the maximum value of 85%. LTV ratio (the ratio of the loan amount to the market value of the collateral) is an important indicator in finance, especially in collateral-based lending. In this case, an LTV of 51% means the loan amount is 51% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV for the project is 85%, which may be a restriction or standard requirement for this type of financing. LTV limitations are set to reduce risks for the lender and ensure a more stable financial position for the project. Lower LTV implies less default risk as the borrower has more equity in the project.

The project's internal number is P00000873-12 on the licensed crowdfunding platform Profitus from Lithuania. The platform states they obtained a license in November 2023 from the European crowdfunding regulator ESMA.

It is important to note that the information on the platform 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 Profitus platform and also recommend approaching investments responsibly by diversifying your investments.