Available for funding: €0
Annual return rate:
Earn:–per year *
The “InRento“ team is introducing a new buy to let investment opportunity: R99, Kaunas. The investment offer consists of a guest house for employees located in an attractive part of the city, at Raudondvario pl. 99E, Kaunas.
The total area of the guest house is 529.70 m² (the price from which the profits share of capital growth is calculated for investors is 689 €/m²). The premises were renovated a few years ago, their total area consists of a conference hall, common areas, catering and laundry areas, and 16 rooms. Each room is equipped with a shower/bath and a toilet.
At the moment, all rooms are rented to an industrial company, where the employees are staying (most of them are foreigners). Photos are provided prior to the lease.
Due to its location, this real estate object is attractive both for the employees of the surrounding industrial companies and for the students of the Veterinary Academy (LSMU). Also, the guest house is only a 15-minute walk away from Kaunas Castle. This makes it possible to rent these rooms separately to individual persons. In the conservative scenario (at the rental price: € 200/month), fully leased rooms would generate € 3,200/month (annual return: 10.52%). Even in this case, it would remain one of the cheapest options in the Kaunas Vilijampolė district.
The project owner will pay a fixed annual interest (as a return on rent) to investors. The annual interest rate for investors: 7.07-7.57% depends on the amount invested (more information below). This project also has a variable capital gain potential. If the assets are sold at a higher price than they were acquired, the capital gain will be distributed proportionally between the investors, the project owner, and InRento (more information below).
The loan term is 48 months.
Reasons to invest in the project R99, Kaunas:
Financial terms of the investment:
“InRento“ investors are granting a loan to the borrower. The loan is secured with a first-charge mortgage which in case of the borrower’s inability to fulfil financial obligations would be used to repossess the asset.
Up to 4999 € - the annual return is 7.07%
5000 € – 14999 € - the annual return is 7.17%
15000 € – 29999 € - the annual return is 7.27%
30000 € – 49999 € - the annual return is 7.42%
50000 € and more - the annual return is 7.57%
The capital growth distribution:
Up to 4999 € - the capital growth will be distributed in the following structure:
40% Investor / 40% Project owner / 20% InRento
5000 € – 14999 € - the capital growth will be distributed in the following structure:
45% Investor / 40% Project owner / 15% InRento
15000 € – 29999 € - the capital growth will be distributed in the following structure:
50% Investor / 40% Project owner / 10% InRento
30000 € – 49999 € - the capital growth will be distributed in the following structure:
55% Investor / 40% Project owner / 5% InRento
50000 € and more - the capital growth will be distributed in the following structure:
60% Investor / 40% Project owner
Rental income (interest):
Rental income (interest) is paid to investors on a monthly basis (on the 15th day of the month). If the 15th day is a non-working day, then the next working day.The interest will be paid out the next month on the 15th after the mortgage is placed. The interest is calculated after the mortgage is being placed.
Capital growth calculator
Your net earnings from capital growth:
The project owner (borrower)
MB „Rego Properties“ - is a company serving as a special vehicle for InRento investments. The CEO of the company - Andrius Rimdeika is a former investment banker, who has worked in investment firms such as ”Morgan Stanley” and “Prime investment”.
Frequently asked questions
When the project is fully funded you will be able to sell your investment on the secondary market. The fee for the secondary market transactions is 2% of the principal value, which is charged to the seller.
Yes! No matter what is the situation with the tenancy, the project owner is obliged to distribute fixed-interest to the investors.
When the property is sold at a higher price than it was acquired, the capital growth will be distributed among investors, project owner and InRento. The project owner assumes potential loss if the property is sold at a lower price. You can find more details by scrolling up this page.
Key investment risks:
Risk of falling prices: The price of the property might fall due to the increase in supply or decrease in demand in the area or other economic factors.
Liquidity risk: The borrower might be unable to find a buyer in order to sell the property.
Tenant risk: There is a risk that the asset can lose a tenant and it can take time to find replacements, which can have impact on the property's cash-flow.
|Borrower's equity exceeds the amount of financing needed||1 / B|
|Borrower's last year's net profit is sufficient to cover the fixed-interest||1 / B|
|Borrower's Debt / Equity ratio||2 / C|
|Borrower's ability to repay liabilities in the past||-1 / A+|
|Property price comparison to a 3rd party valuation||1 / B|
|Property type||1 / B|
|Is there a tenant already||0 / A|
|Borrower's experience with rental properties||0 / A|
|Property occupany over the last 2 years (if it was rented)||0 / A|
|Will the property require renovation||0 / A|
|Micro-location||1 / B|
|Years since last renovation of the premises||0 / A|
|Does the property have elevator if it's not ground floor?||1 / B|
|Does the property have dedicated parking slot near premises? (long-term rent)||0 / A|
|Does the property have security? (for commercial)||0 / A|
|Property has all applicable certificates/zoning rights with at least 2 years before expiry date||0 / A|
|Total:||7 / B|
*InRento Risk rating is of an informative nature only and can not be considered investment advice. InRento is licenced and regulated by the Bank of Lithuania.
Investing with InRento, is similar to owning a rental property, however with us you don't have to worry about day-to-day property management and in the periods of vacancies, the borrower is required to distribute fixed-interest payments, which protects your bottom line.
We would like to inform you, that the mortgage on the project – R99, Kaunas asset has been successfully placed (the document is attached in the documents section). The interest for the project will be distributed next month.
If you have any questions, do not hesitate to contact us at email@example.com or call us at +37069347427.