Real Estate Investing
The project Winners Apartments at 5A Nugaletoju St. from Lithuania is raising investments in the amount of 300,000 euros for Real Estate acquisition with an expected annual return of 10-14%. 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 the 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's website states that there are 10 different risk ratings – 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 about 30%, and the remaining projects have a rating of D. Ratings A and B indicate that the expected investment risk is lower than when investing in loans with ratings C or D, but the returns will be lower correspondingly if you invest in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 34%, which is within the established maximum value of 68%. The maximum allowable LTV value for the project is 85%, which may be a limitation or a standard requirement for this type of financing.
The internal project number is P00001189 on the licensed crowdfunding platform Profitus from Lithuania. The ESMA license is quite complex, as out of over 1000 platforms in Europe in early 2024, only 150 managed to obtain this license.
Please note that the platform specifies that this information cannot be construed as a recommendation, indication, or invitation to use a specific investment service and is not considered a basis or part of subsequent transactions. Investing always involves 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.
