Profitus

Basic information

For Investors

Functionality

What is a risk when investing on Profitus?

When investing on Profitus 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. Profitus financing is short-term 12/ 18 months which is a very short term for a development project 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 want to refinance. But till now the proportion of nonperforming loans is 5.75% which is quite ok.

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. Profitus provides certified appraisal reports for each poverty which gives you an indication of potential property value.

What investments does Profitus offer?

Via Profitus was financed 1232 property projects for the amount of 159,392,984.16 EUR. Most of the projects are from Lithuania 94% and 5% are from Latvia. Most of the projects financed on Profitus are residential property projects.

Why invest on Profitus?

Great returns: 12,14%

Relatively low non-performing loan proportion - 5.75%

All loans are provided with certified appraisal reports.

How does Profitus work?

Profitus 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.