Available for funding: €0
Annual return rate:
Invest:
–Earn:
–per year *Reasons to invest in the project K1, Vilnius II:
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.
This project will be funded in four phases:
The first phase (K1, Vilnius I) is funded with EUR 500,000 (LTV – 66%);
The second phase (K1, Vilnius II) will be funded with EUR 100,000 (LTV – 79%);
The third phase (K1, Vilnius III) will be funded with EUR 100,000 (Max. LTV – 80%);
The fourth phase (K1, Vilnius IV) will be funded with EUR 200,000 (Max. LTV – 80%);
Before issuing the third phase, the borrower will be required to provide an updated appraisal report. The LTV of the total issued loan will never exceed more than 80% LTV.
The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalment ("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 2% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 2% applies. If the Loan is repaid after 24 months, a fixed return of 4% applies. If the Loan is repaid after 30 months, a fixed return of 5% applies. The profit margin is payable whether or not the Loan is repaid on sale of the property.
This project is unique due to the fact that investors earn interest from rent, fixed and variable capital growth:
Up to 4,999 € - the capital growth will be distributed in the following structure: 0% Investor / 80% Project owner / 20% InRento;
5,000 € – 14,999 € - the capital growth will be distributed in the following structure: 5% Investor / 80% Project owner / 15% InRento;
15,000 € – 29,999 € - the capital growth will be distributed in the following structure: 10% Investor / 80% Project owner / 10% InRento;
30,000 € – 49,999 € - the capital growth will be distributed in the following structure: 15% Investor / 80% Project owner / 5% InRento;
50,000 € and more - the capital growth will be distributed in the following structure: 20% Investor / 80% Project owner.
When investing:
Up to 4999 € - the annual return is 7.5% + 2%.
5000 € – 14999 € - the annual return is 7.6% + 2%.
15000 € – 29999 € - the annual return is 7.7% + 2%.
30000 € – 49999 € - the annual return is 7.85% + 2%.
50000 € and more - the annual return is 8% + 2%.
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.The project owner (borrower)
The borrower – UAB „Nord investus“ is an established legal entity to serve as a special purpose vehicle for a purpose of increased security for the investments on InRento. The manager of this company – Giedrius Čirvinskas has been working in the Real Estate industry.
Over the past few years, Giedrius Čirvinskas has successfully finished a number of real estate projects in Lithuania.
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.
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 ability to repay liabilities in the past | -1 / A+ |
| Property price comparison to a 3rd party valuation | 0 / A |
| Property type | 0 / A |
| Is there a tenant already | 2 / C |
| Borrower's experience with rental properties | 0 / A |
| Will the property require renovation | 2 / C |
| Micro-location | 0 / A |
| Years since last renovation of the premises | 2 / C |
| Does the property have dedicated parking slot near premises? (long-term rent) | 0 / A |
| Borrower's Debt / Equity ratio | 0 / A |
| Total: | 7 / B |
Investment rating
*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.
