Real Estate Development
The Pazaislio Houses VII project from Lithuania is collecting investments in the amount of 59000 euros for Real Estate development with an expected annual return of 9.9-10.9%. The minimum investment amount is 100 euros.
The loan term is 12 months, which means the period of time for the borrower to repay the borrowed amount and the 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 – from "A+" to "D". Risk ratings are intended to provide a better understanding of the project's riskiness. Ratings A and B indicate that the expected investment risk is lower than when investing in loans with ratings C or D, but the profitability will be lower accordingly if you invest in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 61%, and this value is within the established maximum value of 85%. Loan-to-Value ratio (the ratio of the loan amount to the market value of the collateral) is an important indicator in the financial sector, especially in the field of collateralized lending. In this case, an LTV of 61% indicates that the loan amount is 61% 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 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 P00001030-7 on the licensed crowdfunding platform Profitus from Lithuania.
Please note that the platform specifies that this information cannot be interpreted 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 involves 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.
