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Unfortunately, this deal expired 22.04.2024
1 month ago

The Hare's House (The Hare's House) XXIV

/ max. 87,250 

About This Deal

The Hare's House (The Hare's House) XXIV project from Lithuania is seeking investments of 87250 euros for Real Estate development with an expected annual return of 10.5-12%. The loan term is 10 months, meaning the borrower must repay the loan amount and interest within 10 months after receiving the loan.

The project's risk level on the platform is indicated as C. The platform states that there are 10 different risk ratings ranging from "A+" to "D". Projects with ratings of "A+", "A", "A-" account for about 9%, 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. Ratings A and B indicate lower investment risk compared to investing in C or D rated loans, but the returns will be lower accordingly when investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 59%, which is within the maximum value of 70%. The maximum allowable LTV for the project is 85%, which may be a restriction or standard requirement for this type of financing. LTV limitations are set to reduce risks for the lender and ensure a more stable financial position for the project. For example, lower LTV means less default risk as the borrower has more equity in the project.

The internal project number is P00000744-26 on the licensed crowdfunding platform Profitus from Lithuania. The platform indicates 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 at the beginning of 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 investment responsibly by diversifying your investments. In the European Union countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.

What are your thoughts on investing in this project? The investment goal is Real Estate development in Lithuania
What amount do you consider optimal to invest in this project?