Financial terms of the investment:

Maximum loan term

16 months

Maximum term - is the maximum duration within the project owner (the borrower) must sell the rented asset and then fully payback the investment to the investors (creditors)

Security

1st charge
Mortgage

Security indicates the measures that are being taken to secure your investment. Investing via InRento the assets are being mortgaged in the name of the investors.

Annual return

6.07-6.57% + 1.75%

The annual return here indicates the investment yield (from rental income) based on the conditions of the investment at the time of crowdfunding.

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.

Investors in this project have the opportunity to stay free of charge in the apartment:

Investing 10,000 EUR or more: 

2 nights during on-season;

4 nights during off-season;

On-season: from May 15th, until September 30th. The reservations shall be made at least 45 days prior to the stay. In order to claim the vouchers, write an email to nerijusbaliunas@gmail.com with your planned days of staying. You can only use the offer once. 

This project will be funded in two phases:

The first (V3, Palanga I) is funded with EUR 104,000 amount;

The second (V3, Palanga II) will be funded with EUR 20,000 amount. 

The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalments ("Instalment"), with the return for each successive Instalment being added to the calculation of the return. The Instalment shall be considered as per one calendar year. A fixed increment of 1.75% shall be applied to the Instalment.

Example calculation: If the Loan is repaid after one year, a fixed return of 1.75% applies. If the Loan is repaid after 18 months, a fixed return of 2.625% applies. The profit margin is payable whether or not the Loan is repaid on sale of the property.

When investing:

Rental income (interest):

Rental income (interest) is paid to investors on a monthly basis (on the 12th day of the month). If the 12th day is a non-working day, then the next working day.

The interest will be paid out the next month on the 12th after the mortgage is placed. The interest is calculated after the mortgage is being placed.

The project owner (borrower)

UAB “Nebutas“ — personal real estate rental project development company. The head of this company — Nerijus Baliūnas, has more than 8 years of management experience having been active in investment activities for more than 7 years. He has also founded UAB Nogridas, sold this company, and currently, N. Baliūnas works in the ‘’Business Angels Fund II’’, which owns up to 11.5% of the holding company of UAB ‘’InRento’’.

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.

InRento Risk Scoring

Criteria	Score
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	0 / A
Property type	0 / A
Will the property be managed by "super host" (for short term rentals)	2 / C
Borrower's experience with rental properties	0 / A
Will the property require renovation	2 / C
Micro-location	0 / A
Does the property have elevator if it's not ground floor?	1 / B
Years since last renovation of the premises	-1 / A+
Total:	7 / B

Investment rating

A – Lowest risk
D – Highest risk

*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.