Platform Concept: Letsinvest is a Lithuanian real estate crowdfunding platform that facilitates investments in local real estate projects. The platform is designed to make real estate investments accessible to both small and large investors by offering short to medium-term loans secured by first mortgages.

Business Activity: Established in 2020, Letsinvest enables investors to participate in property-backed loans, with typical investment periods ranging from 6 to 24 months. The platform conducts thorough due diligence on each property, ensuring that only high-quality, profitable projects are listed for investment.

Offered Services: Letsinvest provides an easy-to-use platform where investors can browse available real estate projects, invest with as little as €100, and track their investments. The platform also offers a "Growth" membership for large investors, providing personalized investment portfolios and early access to projects.

Unique Selling Points: The platform's key features include a low minimum investment threshold, average annual returns of ~10%, and secured investments backed by first mortgages. The platform is regulated by the Bank of Lithuania, ensuring a secure investment environment.

Useful Information

What is a risk when investing on Letsinvest?

When investing on Letsinvest you should evaluate two risks. The first risk is a risk of default meaning that the project owner will not be able to repay the loan on time.

Letsinvest financing is short-term 12/ 18 months which is a very short term for a development project, you cannot construct and sell a project in such a short term, plus projects often are financed in several rounds, thus it might indicate that the business model is to not repay loans from sales but from refinancing loans - which is not a very good idea and might lead to serious risks if no one wants to refinance.

The second risk is money loss during default. Loans are secured with property so you need to make sure that property value is sufficient to repay your loan in case of default. Letsinvest provides certified appraisal reports for each poverty which gives you an indication of potential property value.

How does Letsinvest work?

Letsinvest operates as a real estate crowdfunding platform where people can invest in real estate projects by providing loans to property developers. On the other hand property developers can raise funding from a crowd of investors without asking banks for funding.

Why invest on Letsinvest?

Good returns - 10.05% is a very good return for property-backed loans.

Information about projects is well prepared and provided, including appraisal reports (but only in Lithuanian);

What investments does Letsinvest offer?

On Letsinvest you will find projects mainly from Lithuania. Letsinvest mostly focuses on residential projects, but you will also find green energy and commercial projects.

How Does the Letsinvest Work?

Service Description for Investors and Project Owners: Investors register on the platform, verify their identity, and can start investing with a minimum of €500. Real estate projects are vetted for profitability and security, with investments secured by first mortgages. Large investors can access personalized services and early project listings.
Types of Investments Offered: The platform offers real estate loans, including buy-to-let investments, with returns from rental yields and capital appreciation.

What is a Risk When Investing on a Letsinvest?

General Risks: Risks include loan defaults, economic changes affecting property values, and liquidity risks. However, investments are secured by first mortgages, reducing the risk of total loss.

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