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Unfortunately, this deal expired 03.03.2024
2 months ago

Individual House on Gvazdiku Street, Vilnius

/ max. 150,000 

About This Deal

The project Individual House on Gvazdiku Street, Vilnius from the country LT is gathering investments amounting to 150,000 euros for Real Estate development with an expected annual return of 7.3-9.3%. 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 A-. Projects with ratings of "A+", "A", "A-" constitute around 9% on the platform, while projects with ratings of "B+", "B", "B-" make up the majority at 58%. There are also projects with ratings of "C+", "C", "C-", comprising around 30%, with the remaining projects rated D. Ratings A and B indicate lower expected investment risk compared to investing in credits rated C or D, but the returns will correspondingly be lower when investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 26%. 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 collateral-based lending. In this case, an LTV of 26% indicates that the loan amount is 26% of the current market value of the collateral (likely real estate or another asset). Such LTV restrictions are set to reduce risks for the lender and ensure a more stable financial position for the project. Lower LTV implies lower default risk as the borrower has more equity in the project.

The project's internal number is P00001190 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 in early 2024, only 150 managed to obtain this license.

Please note, the platform specifies that this information 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 investing responsibly by diversifying your investments.