- Attractive location: The mortgaged property is located in Palanga, close to the Baltic Sea and the resort centre. The location is favourable for short-term rentals, while demand for resort real estate and the property's suitability for both rental and personal use broaden the pool of potential buyers and enhance the property's liquidity.
- Stable income: The mortgaged property is 100% complete, fully fitted out and generates stable income from short-term rentals.
- Experience with PROFITUS: The Project Owner has financed 3 projects through the PROFITUS platform and is meeting its obligations to investors on time.
About the Project:
The Project Owner, MB “Sweet sun”, has acquired a 48.29 m² apartment with a share of the land plot in Palanga, at Latgalos g. 9B-1. The apartment is 100% complete, fully and professionally fitted out, and is used for short-term rentals.
The property is located in Palanga, one of Lithuania's most active resort real estate markets, where demand is driven by both the purchase of properties for recreational use and the short-term rental market. The property's location in a wooded part of the city, close to the Baltic Sea and the resort centre, increases its attractiveness for short-term rentals and broadens the pool of potential buyers.
The funds raised at this stage will be used for the continued financing of the existing PROFITUS loan. The Project is planned to be financed by securing the property with a conditional mortgage, taking into account the existing restrictions arising from ongoing proceedings related to the building permit. Despite the circumstances described above, the property is fully fitted out, successfully rented out and generates stable income. The dispute arose following inspections carried out by the State Territorial Planning and Construction Inspectorate, during which potential violations of legislation governing the construction process were identified, specifically a possible 20% exceedance of the permitted building density and non-compliance with required distances. This circumstance complicates the standard Project financing process and results in the application of a conditional mortgage as a temporary security measure.
The condition for the conditional mortgage to take effect is linked to a settlement agreement between the parties involved in the proceedings.
Loan information:
Interest will be paid from the company's sales revenue and short-term rental income and, if necessary, from the shareholder's personal funds. The loan will be repaid through refinancing with another credit institution or from the proceeds of the sale of the mortgaged property.
Maximum financing amount: EUR 126,000. The Project is financed based on the current valuation of the mortgaged property until the established maximum loan-to-value (LTV) ratio is reached. Once the maximum LTV is reached, a new property valuation will be required, and subsequent financing stages of the Project will be launched and funded only if the established maximum LTV is not exceeded. The term of the Project loan agreement is 60 months. Funds for the Project may be raised in stages, with the duration of this financing stage being 12 months. At the end of this stage, if necessary, continued financing of the Project may be carried out, i.e. funds may be raised through a new financing stage without exceeding the final term of the Project loan agreement.
We plan to raise the target amount within 7 days, with the possibility of extending the fundraising period up to 30 days if the required amount is not raised.
About the Profitus
Profitus is a crowdfunding and investment platform with a minimum investment of 100 euros. Profitus investments are secured by real estate mortgages, Your investment is secured by a first or second mortgage on the property, as well as by other collateral (e.g. a surety or guarantee). Transactions are managed through Lemonway, a regulated payment service provider.
Profitus is a crowdfunding and investment platform whose main goal is to make investment available to everyone. Investments start at 100 euros, and the platform is open 24/7. Investments are secured by pledging real estate and other collateral (e.g., indemnity or warranty). Different projects have different security tools that users can access in self-service for each project.
Profitus consults with the Bank of Lithuania in order to ensure perfect compliance with the law. Profitus operates with Lemonway, a regulated payment service provider.
