Real Estate Development
The Tintiniskiu Apartments III project from Lithuania is raising investments amounting to 31400 euros for Real Estate development with an expected annual return of 10.5-11.5%. The minimum investment amount is 100 euros.
The loan term is 12 months, which means the period for the borrower to repay the borrowed amount and 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 states that there are 10 different risk ratings ranging from "A+" to "D". Around 9% of projects have ratings of "A+", "A", "A-", while the majority of projects, around 58%, have ratings of "B+", "B", "B-". There are also fewer projects with ratings of "C+", "C", "C-", comprising about 30%, and the remaining projects have a rating of D. Ratings of A and B indicate lower expected investment risk compared to investing in credits with ratings of C or D, 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 50%, which falls within the set maximum value of 85%. The 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 collateralized lending. In this case, an LTV of 50% indicates that the loan amount is 50% of the current market value of the collateral (presumably real estate or another asset). Such LTV limitations 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 default risk, as the borrower has more equity in the project.
The internal project number is P00000654-3 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 should not be 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.
