- Low LTV: The LTV at this financing stage is 15%, while the maximum planned LTV is 57%, maintaining a significant buffer between the value of the mortgaged property and the loan amount.
- Liquidity: The mortgaged property is fully completed, fitted out and suitable for living. The property is currently actively offered for sale for 1 850 000 EUR, and if sold, the loan may be repaid earlier than scheduled.
- Attractive location: The property is located in Jūrmala, on the bank of the Lielupe River, approximately 5–6 km from the centre of Jūrmala and around 19 km from Riga Old Town. The attractive resort location and proximity to Riga increase the pool of potential buyers and provide favourable conditions for the sale of the property.
Interest rates based on the investment amount:
– From 100 EUR to 299 EUR – 8.50%
– From 300 EUR to 699 EUR – 8.70%
– From 700 EUR to 1 999 EUR – 8.90%
– From 2 000 EUR to 4 999 EUR – 9.10%
– From 5 000 EUR to 9 999 EUR – 9.30%
– From 10 000 EUR – 9.50%
Important: separate investments are not aggregated and cannot be combined.
About the Project:
The Project Owner is mortgaging real estate owned by them in Jūrmala and seeks to raise financing for working capital and business development. The funds raised will be invested in the development of an IT company operating in Germany. The company already has a developed product, existing clients and generates revenue. The additional capital will be used for further product development as well as expanding sales and the client base. The business operates on a subscription model, and according to the business plan provided by the Project Owner, the average contract value per client is approximately 120 000 EUR per year. During the financing period, the company plans to attract 8–12 new clients; therefore, the purpose of the investment is to increase the sales volumes and revenues of an already operating business.
The mortgaged residential house was acquired in 2019 and extensively renovated – the interior was fully stripped out, followed by high-end renovation and fit-out works. The property is currently actively offered for sale for 1 850 000 EUR. The property is located in an attractive area of Jūrmala, on the bank of the Lielupe River, approximately 5–6 km from the centre of Jūrmala and around 19 km from Riga Old Town. The sale of the property is one of the planned sources of loan repayment; therefore, if the property is sold, the loan may be repaid earlier than scheduled.
Loan information:
The loan is expected to be repaid from the sale of the mortgaged property, refinancing with another financial institution, or funds generated from business operations. Interest to Investors will be paid from the company’s operating income.
The total planned financing requirement is up to 800 000 EUR, and the funds will be raised in stages according to the actual financing needs of the business development. The Project is financed based on the current valuation of the mortgaged property until the established maximum loan-to-value ratio (LTV) is reached. Once the maximum LTV is reached, a new property valuation will have to be carried out, and further financing stages of the Project will be announced and funds raised 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, and the duration of this financing stage is 18 months. Upon expiry of this stage, if necessary, continued financing of the Project may be carried out, i.e. funds for the Project 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 financing period up to 30 days if the full 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.
