Real Estate Development
The Pathway Home XX project from Lithuania is gathering investments of 100,000 euros for Real Estate development with an expected annual return of 9.9-11.9%. The loan term is 7 months, meaning the borrower must repay the loan amount and interest within 7 months after receiving the loan.
The project's risk level on the platform is rated C+. 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 about 30% of the platform, with the remaining projects rated D. Ratings A and B indicate a lower expected investment risk compared to investing in credits with ratings 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 67%, which falls within the maximum value of 70%. 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 67% indicates that the loan amount is 67% of the current market value of the collateral (likely real estate or another asset).
The project's internal number is P00000722-20 on the licensed crowdfunding platform Profitus from Lithuania. The platform states that they obtained a license from the European crowdfunding regulator ESMA in November 2023. 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 information on the platform cannot be construed as a recommendation, advice, or invitation to utilize 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.
