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Unfortunately, this deal expired 06.06.2024
14 days ago
9

Hotel in Laisves Avenue VI

100 
/ max. 61,500 

About This Deal

The project Hotel in Laisves Avenue VI from Lithuania is raising investments in the amount of 61500 euros for Real Estate development with an expected annual return of 10.5-12%. The minimum investment amount is 100 euros.

The loan term is 12 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 12 months after receiving the loan.

The project's risk level on the platform is indicated as C. The platform's website states that there are 10 different risk ratings ranging from "A+" to "D". Ratings A and B indicate 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 74%, which is within the established maximum value of 75%. LTV 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 74% indicates that the loan amount is 74% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV value for the project is 85%, which may be a restriction or standard requirement for this type of financing. 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 P00000879-6 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, 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 investing responsibly by diversifying your investments. In the European Union countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.

What are your thoughts on investing in this project? It's a Real Estate development in Lithuania. I don't have much experience with investments, so I'd appreciate your insights on the potential risks and returns
What amount would you consider investing in this project?