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Unfortunately, this deal expired 12.04.2024
2 months ago

Seaside Residence V

/ max. 300,000 

About This Deal

The Seaside Residence V project from Latvia is raising investments of 300,000 euros for Real Estate development with an expected annual return of 10.6-13.6%. The loan term is 6 months, meaning the period for the borrower to repay the loan amount and interest. In this case, the borrower must repay the loan within 6 months after receiving the loan.

The project's risk level on the platform is rated B-. Projects with ratings of "A+", "A", "A-" represent about 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. Risk ratings are intended to provide a better understanding of the project's riskiness. An A or B rating indicates lower investment risk compared to investing in C or D rated loans, but the returns will be correspondingly lower when investing in lower-risk projects.

The project has a Loan-to-Value (LTV) ratio of 45%, which is within the maximum limit of 50%. The LTV ratio (the ratio of the loan amount to the market value of the collateral) is an important indicator in finance, especially in collateralized lending. In this case, an LTV of 45% indicates that the loan amount is 45% 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. For example, the lower the LTV, the lower the risk of default, as the borrower has more equity in the project.

The project's internal number is P00001153-5 on the licensed crowdfunding platform Profitus from Lithuania. 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 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 the Profitus platform and also recommend approaching investments responsibly by diversifying your investments. In EU countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.

Hey guys, what's your take on considering an investment in this project? I'm thinking it could be a great opportunity for some real estate development in Latvia. What do you think?
What amount do you think is reasonable to invest in this project?