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Letsinvest Analysis

Real Estate Debt
Real Estate Crowdfunding

Last updated in April 2023.

What is Letsinvest?

Letsinvest is a relatively new player in the real estate lending market that is supervised by the Bank of Lithuania. It launched in 2021 and offers real estate and green energy debt investments in Lithuania for investors in the European Economic Area. They have funded more than €12m in 34 projects to date with an average nominal interest rate of 9,06%. See Letsinvest statistics for more historical performance insights and find an overview of all Letsinvest projects on P2PMarketData.

Key Takeaways

  • Traditional investment-based crowdfunding platform
  • Mainly real estate deals with low LTV and a transparent risk grading system
  • Nominal interest rates of approx. 9%; undisclosed loan performance indicators

How Letsinvest Works

Letsinvest offers short- and mid-term property-secured loans to SMEs and property developers. Loans usually mature in 6-24 months and are always backed with collateral - the underlying property or green energy facility. LTV ratios are low at 57% on average and don’t usually exceed 70%. Most loans are structured as bullet loans with payment at maturity, but quarterly or monthly interest repayments are also sometimes on offer. The platform assesses the risk rating of each project on a scale from A1 to D3, with clearly defined evaluation criteria.

Letsinvest offers two memberships. The Discovery membership is for retail investors with a minimum investment starting from €100 but with limited benefits. The Growth membership has a minimum threshold of €50,000 but offers additional perks, including exclusive deals, higher interest rates, and a personal portfolio manager. There is no auto-invest feature or secondary market (yet). Most projects offer a higher interest rate the more that is invested.

Letsinvest Returns & Fees

In the P2PMarketData Letsinvest written interview with the CEO, Vytenis Kinduris told us that the average return on investments had been 8.7%, and the default rate was 0% at that point (7th April 2022) which is still claimed to be the case when reading their 2022 annual overview article1. However, the platform doesn’t disclose updated statistics on loan performance. The interest rates vary from 7% to 10%.

The platform doesn’t charge any fees to investors and doesn’t disclose its borrower fee structure.

Letsinvest Management

Vytenis Kinduris is at the steering wheel as the Founder and CEO. He has more than 25 years of experience in international business development and real estate.

The company ownership is split between him and an investment fund (details undisclosed). There have not been any venture capital funding rounds so far.

The company says it made a net profit already in the first year of operation (2021), although financial reports are not publicly available.

Special Considerations

The platform seems to have successfully attracted high-value retail investors from the launch, with the average portfolio size standing at €37,000 (2020 figures) - as shared by Vytenis Kinduris in the interview with P2PMarketData. He also announced the company's expansion plans:

The Lithuanian real estate market is our alma mater, but our goal is to become a pan-European platform. As a result, we will continue strengthening our presence in Lithuania parallel to expanding our services abroad next year.

In December 2022 Letsinvest funded its largest project so far of €2.2 million for a large apartment complex in Vilnius by the experienced Lithuanian real estate developer “Groupinvest”.

Article Sources

  1. Letsinvest Blog: “2022 Annual Overview