Real Estate Crowdfunding
The Corner Hotel IV project from the country of Lithuania is raising investments of 86,500 euros for Real Estate acquisition with an expected annual return of 10.5-11.25%. The loan term is 18 months, meaning the borrower must repay the loan amount and interest within this period after receiving the loan.
The project's risk level on the platform is rated as B-. The platform states that there are 10 different risk ratings ranging from "A+" to "D". Ratings A and B indicate lower investment risk compared to investing in loans with ratings C or D, but the returns will be lower if investing in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 56%, which falls within the maximum allowable value of 61%. LTV ratio is an important financial indicator, especially in collateralized lending. In this case, an LTV of 56% indicates that the loan amount is 56% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV for the project is 85%, which may be a restriction or standard requirement for this type of financing.
The internal project number is P00001163-4 on the licensed crowdfunding platform Profitus from Lithuania. The ESMA license is quite complex, as out of over 1000 platforms in Europe, only 150 managed to obtain this license by early 2024.
It is important to 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 investment responsibly by diversifying your investments.
