The Hare's House (The House of Bicycles) XXV project from Lithuania is seeking investments of 152,100 euros for Real Estate development with an expected annual return of 10.5-12.5%. The loan term is 9 months, meaning the borrower must repay the loan amount and interest within 9 months of receiving the loan. The project's risk level on the platform is rated C. 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 lower-risk projects.
The project has a Loan-to-Value (LTV) ratio of 59%, 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 finance, especially in collateral-based lending. In this case, an LTV of 59% indicates that the loan amount is 59% 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. LTV restrictions are set to reduce risks for the lender and ensure a more stable financial position for the project. For example, lower LTV means lower default risk as the borrower has more equity in the project.
The project's internal number is P00000744-27 on the licensed crowdfunding platform Profitus from Lithuania. It is important to note that the information on the platform 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 investments responsibly by diversifying your investments. Crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law in EU countries.
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