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Profitus Analysis

Real Estate Loans
Direct Marketplace Lending

Last updated in August 2022.

What is Profitus?

Profitus is one of the leading real estate crowdfunding platforms in Lithuania. It was founded in 2018 and has since funded €90.00m worth of loans to date - see Profitus statistics for more historical performance insights.

Key Takeaways

  • Privately held platform with no external funding
  • Lithuanian real estate loans backed by property collateral
  • Expected returns of around 10%, no write-offs so far, and few delayed loans

Who is Behind Profitus?

Viktorija Cijunskyte and Mindaugas Vanagas launched Profitus. Before, they founded and successfully ran Citus – a real estate agency. Ms Cijunskyte leads Profitus as a Director, while they both sit on the Board and make business decisions jointly. They also hold all the shares – Profitus hasn’t used any external funding to date.

Profitus doesn’t publish financial reports.

Profitus's Investment Product

Profitus offers investments in Lithuanian residential real estate via three types of real estate loans:

  • Development loans provide financing for one-off projects, usually smaller-sized (approx. €200,000).
  • Business loans can serve as working capital, for the acquisition of real estate or refinancing.
  • Stage loans finance large-scale development projects (approx. €1-2 million), where funds are raised in stages as the property is being developed and its value increases (from land plot to construction to completed property).

All loans are backed by property collateral with LTV ratios up to 70%. The loan repayment schedules vary but bullet loans with quarterly interest repayments seem to be most frequent. Profitus uses a risk scoring system for each project from A+ (safest) to D (highest interest). 

Investors can use an auto-invest feature and buy or sell investments on a secondary market. You can view all live Profitus projects directly at P2PMarketData.

How Much Can You Earn?

At P2PMarketData, based on the API integration of all live and historical Profitus loans, we have calculated the average nominal interest rate at 8.73%. On their statistics page, Profitus displays a 9.6% average interest rate.

Profitus CEO told us that early repayments can increase investors’ real returns even to 10-11%. The platform puts the share of delayed loans at 3.7%. No losses have been incurred up to date.

Investors pay a 2% fee on secondary market sales. Profitus also charges several borrower fees, including a 2%-5% one-off platform fee. For the whole fee structure, see the fee list.

Other Considerations

Profitus remains a Lithuania-focused platform – all borrowers and most lenders (about 70%) come from this Baltic state. However, in an interview with P2PMarketData, Profitus CEO – Viktorija Vanagė expressed her hope that the new EU regulation would facilitate cross-border investing. She also shared her views on the market and Profitus’ future:

Our expectations are positive and ambitious. We believe that the crowdfunding market will grow rapidly, both in Lithuania and in Europe. In 2020, Lithuania recorded a 66% growth in the real estate funding market. I believe that the trend will continue in the upcoming years. Moreover, during the first quarter of this year [2021], we attracted three times more new investors than during the whole of 2019.