Houses in the Vasara III neighborhood

The project Houses in the Vasara III neighborhood from Lithuania is gathering investments in the amount of 37000 euros for Real Estate acquisition with an expected annual return of 9.1-11%. The loan term is 18 months, meaning the period for the borrower to repay the borrowed amount and the loan interest. 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. On the platform, around 9% of projects have ratings of "A+", "A", "A-", while the majority, about 58%, are projects with ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", which are fewer, around 30%, and the remaining projects have a rating of 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 37%, which is within the established maximum value of 70%. Such LTV limitations 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 P00001216-3 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.

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 carries the risk of losing part or all of the investments. I agree with the Profitus platform and also recommend approaching investing responsibly by diversifying your investments. In the countries of the European Union, crowdfunding is not prohibited by the Law on Deposit Insurance and Investor Responsibility.