Vasaros Street, Marijampole

The Vasaros Street, Marijampole project from Lithuania is raising investments of 152,000 euros for Real Estate acquisition with an expected annual return of 8.6-10.6%. The loan term is 18 months, meaning the period for the borrower to repay the loan amount and interest. The borrower must repay the loan within 18 months after receiving it.

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". Around 9% of projects on the platform have ratings of "A+", "A", "A-", while the majority, about 58%, have ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", comprising around 30%, and the rest are rated D. Risk ratings are provided to better understand the project's level of risk. A and B ratings 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 48%, which is 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 48% indicates that the loan amount is 48% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV value 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 project's internal number is P00001216 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.

Please note, the platform states 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 investments responsibly by diversifying your investments. In EU countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.