Profitus Review

Last update | 28. March 2022

Earn on average 9.32% interest per year.
Your investment is secured by  a mortgage.

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Highlights
  • 100% mortgage backed loans
  • Minimum investment from €100
  • Lower risk and stable cashflow
  • User-friendly platform
Rating
Risk & Return
Usability
Liquidity
Support
FEATURES
Buyback GuaranteeNo
Auto InvestYes
Secondary MarketYes
CashbackYes
RegulatedYes
DIVERSIFICATION
Min. Investment 100
Countries1
Loan Originators1
Loan TypeReal Estate
Loan Period in Months6 - 18
Interest6% - 12%
PROS & CONS
  • Excellent track record
  • Transparent T&C
  • Secured by a mortgage
  • Slightly lower yield
  • Limited diversification
  • Withholding taxes
News
Statistics
Promo
Risk & Return
Due Diligence
Usability
Liquidity
Support
Summary

News

14 Jan 2022  

Profitus has launched a secondary market.

Statistics

Year founded:

2018

Number of investors:

3.947

Investors' earnings:

€ 2M

Average portfolio size:

€ 12.000

Total invested:

€ 51M

Loss of investors' money:

Not available

Funds in recovery:

€ 34.308

Profitus Review

Profitus is a small real estate P2P lending platform from Lithuania. When using Profitus, investors help to fund mortgage-backed real estate projects from Lithuania.

The investment term for most of the listed projects is between six and 18 months. On average, investors earn 10.36% interest per year. Find out more about this platform, and whether it’s a good fit for your investments, in this Profitus review.

profitus review
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Profitus in Numbers

Whenever looking for a new platform to invest in, we strongly recommend having a look at the platform’s statistics.

Profitus only started operating two years ago, and, as with any new P2P lending platforms, it will take some time for Profitus to build a track record and gain the trust of fellow investors.

Although Profitus shares some data about the number of investors registered to their site, as well as the total loan value, we could not find information about investors’ earnings or the average portfolio size, which is why we reached out to Profitus to request this data.

The Lithuanian P2P lending platform was keen to provide some additional data. As you can see, the average portfolio size is slightly lower than on many other P2P lending platforms such as PeerBerry, Bondster or VIAINVEST.

Read our VIAINVEST review to learn to get familiar with this P2P lending platform.

Unfortunately, Profitus does not publicly share its financial reports, which is a pity, as this would no doubt increase our and other investors’ trust in the P2P lending platform. According to Profitus, the operator only shares their financial data with the Bank of Lithuania and the State Tax Invention.

Profitus Bonus Code - Get €50 for FREE

Profitus offers a dedicated sign-up bonus for newly registered investors who use the promo code P2PEMPIRE during the first investment.

How to claim the bonus?

First, you have to use our link to sign up on Profitus. Confirm your identity and choose a project that you would like to invest in.

Enter the desired investment amount that you want to invest and click on "Invest".

In the investment confirmation window, enter our exclusive promo code "P2PEMPIRE".

The value of the gift voucher will automatically cover €50 of your investment.

Keep in mind that this is an exclusive bonus offer only for our readers here on P2P Empire. The bonus code is also only valid for the first investment until 31 July 2022.

Ready to get €50 for free?

Profitus’s New User Requirements

Profitus users can register either as private investors or as a company. In order to register, users need to be at least 18 years old. 

The registration process is very straightforward, simply type in your name, email, and phone number and then verify your email address. After verification, you will need to confirm your identity.

There are two ways you can complete this step.

  • Use the Know Your Customer (KYC) verification service, Ondato. When using this method, you will need to take a selfie and a photo of your passport or ID card.

After you have been verified (which, in our experience, takes no more than five minutes), you can top up your Profitus account.

In order to transfer funds to your Profitus investor account, you need to use the payment service, Trustly.

Note that Trustly charges a 1.53% fee for any deposits and withdrawals. 

Unfortunately, Profitus does not offer the option to transfer funds via the free SEPA transfer, which is offered by many other platforms.

Profitus’ Risk and Return

When investing in P2P loans or any other crowdfunding projects, you should be aware of the risks connected to your investment.

When investing on any platform, you are always running the risk of losing some if not all of your money. The probability of this situation occurring highly depends on several factors. One of these factors is the loan type that you choose to fund.

While many platforms like Mintos, PeerBerry or Robocash offer investment opportunities in unsecured personal loans Profitus offers mortgage-backed investments which means that 100% of the loans are secured by a first-rank mortgage.

How Does Profitus Protect Your Investment?

The risk of default is influenced by many factors, most of which investors have no control over. If you want to know more about the risks connected to the investment on Profitus, we suggest reading their PDF file.

Let’s start by breaking down Profitus’s protection scheme, so you get an idea of how your investment is protected...

Here are the companies Profitus collaborates with to increase the protection of your investments.

  • Bank of Lithuania, which ensures Profitus is in compliance with national laws
  • Trustly, which manages investors’ funds, because they are separated from Profitus’s operational bank accounts
  • Sorainen, a law firm that helps to create contracts
  • Creditinfo, which completes risk assessment of real estate projects

Profitus uses data from registries and credit score companies like Creditinfo to assign a risk rating (either A+, A, A-, B+, B, B-, C+, C, C- or D) to individual real estate projects. Read more about how Profitus assesses the projects here.

You should know that Profitus only acts as an intermediary between the borrowers and investors.

When you invest in a project listed on Profitus, you are closing a loan agreement with the borrower and not the platform. This means that if Profitus goes out of business, by law, the assets (mortgage) remain with investors.

Profitus helps to facilitate those transactions and deal with the paperwork. It also allows investors to invest in Lithuanian real estate projects for as little as €100.

If the borrower fails to repay the debt, Profitus will initiate the debt collection process. The real estate will be sold and the revenue will be proportionately distributed among the investors.

How About the Returns on Profitus?

In terms of returns, the average interest rate investors earn from investing on Profitus is 9.32% which is slightly lower than on platforms like EstateGuru or Crowdestate.

The reason for this might be the higher demand for investment opportunities, the lower interest due to higher securities, or lower loan-to-value (LTV).

The average LTV on Profitus is just 59%.

The returns are highly dependent on the projects you choose to invest in, however, overall the interest is slightly lower than it is on other market players.

Tax Deduction

If you already have some experience with platforms like Heavy Finance or Viainvest, you might be familiar with their tax deduction policy.

profitus review

Similar to some competitor platforms, Profitus automatically deducts 15% from users’ interest, unless they provide a special application to reduce the deductible tax.

Investors need to provide a document that proves their country of residence. Profitus will then send them a DAS-1 application that can be used to avoid the taxation of their investment.

The majority of P2P platforms do not withhold any taxes as the investors are responsible for reporting income from P2P investments.

Is Profitus Safe?

At P2P Empire, we aim to provide the most value to our readers, which is why we look at the management team, history, and the terms and conditions of every platform we review.

Who Runs the Company?

Profitus is led by the Founder and Director Viktorija Vanage, who has over 12 years of experience in the real estate industry.

During our research, we also found out that Viktoria co-founded the real estate agency Citus, which, within only a few years, took 4th place within the Lithuanian real estate market. You can read more about the company’s success on Viktorija’s CrunchBase profile.

According to Profitus’s website, the company employs 21 people. The legal owners of Profitus is Viktorija and Mindaugas Vanagas.

Are There Any Suspicious Terms & Conditions?

At P2P Empire, we are pretty sure that most investors don’t read the terms and conditions. And we don’t blame you, it’s a very laborious task... But, it is important to understand your rights, especially when a third party is dealing with your money.

Let’s have a look at the terms and conditions from Profitus to see if there’s anything that new users should be aware of:

profitus review

The first point worth mentioning is that Profitus holds your funds in separate bank accounts. While many platforms mention this in their marketing copy, it’s good to see it referenced in Profitus’s terms and conditions as well.

Profitus also mentions the legal process of debt collection. It is quite straightforward and you can read more about it here.

profitus review

We also like the fact that Profitus informs its users about any changes related to the contracts between the investors and the platform or borrowers.

profitus review

As you might expect, Profitus, is not liable for any losses that might result from investing on the platform. This is true of all P2P lending sites.

We have not found any suspicious terms and conditions. You can read the entire 12-page-long document here.

Do Investors Have Access to Individual Loan Agreements??

Before you invest, you can read the project description and project terms. You should also be well aware of the companies terms and conditions, which you can find here. As soon as the entire project is financed, the investors receive a loan agreement, which they can access from their investor’s profile.

Profitus’s Usability

Profitus is one of the most user-friendly real estate P2P lending platforms in terms of design. Unfortunately, we cannot say the same about the functionality of the platform.

If you have some experience with real estate P2P lending platforms, you might be aware of the issues that newer real estate platforms face.

In terms of usability, Profitus offers all you could ask for from a regulated crowdfunding platform in Europe.

profitus review

The investment website offers a primary and secondary market, where you can invest in various mortgage-backed loans manually or the Auto Invest which is a tool where you can define your investment criteria and automate your investment process – a real time saver if you ask us!

profitus autoinvest

The Auto Invest enables you to define the investment amount, the desired interest rate, LTV ratio, loan duration and the project risk ratings.

Below the main view, you are able to review the number of previously listed loans that match your criteria as well as the expected number of loans that will be listed on the platform in the upcoming weeks.

Profitus’s Liquidity

In terms of liquidity, you can access your funds either at the end of the loan term, when the project has been repaid or when you sell your investments on the secondary market.

profitus autoinvest

You can sell your investments with a premium or a discount anytime. Keep in mind that Profitus charges a 2% secondary market fee for sellers. Buyers can buy discounted projects on the secondary market for free.

You should know that it might take a few days or weeks to sell your portfolio. The secondary market is a good option to liquidate your investments, should you need it.

If you want to be able to have access to your money, we suggest using other P2P lending platforms.

Esketit, as well as Bondora, are two platforms that allow you to instantly withdraw most, if not all, of your investments.

Profitus’s Customer Support

Our experience, Profitus support has been very positive. We have been in touch with the company several times and each time the platform has provided all of the requested information within one business day. If you have any questions regarding Profitus, we suggest reading their FAQ section before contacting their support at info@profitus.lt

Profitus Review Summary

Profitus is a young and promising platform that helps investors invest in Lithuanian real estate projects. Most of the projects on Profitus are funded with the LTV of below 70%, which makes the investments less risky.

If you are looking for a reliable and regulated crowdfunding platform with exposure in real-estate-backed loans in Lithuania, Profitus is currently the best option on the market with an excellent track record.

Tempted to try Profitus?

FAQs

What’s the Minimum Investment Amount on Profitus?

The minimum investment amount per project on Profitus is currently €100.

How is My Investment Secured on Profitus?

All of the investments on Profitus are secured by a mortgage. Out of 380 funded projects only two defaulted.

Are There Any Fees on Profitus?

If you decide to transfer funds or withdraw funds on Profitus, the money transferring service Trustly charges a 1.5% fee. The platform also charges a 2% fee for sellers on the secondary market.

Does Profitus Withhold Taxes?

Profitus does withhold a 15% income tax on users’ earned interest, but users can submit a special document that allows them to tax the income in their country of residence instead.

Company Information

Company:

Profitus OÜ

Address:

Lvovo st. 101, Vilnius, Lithuania

Phone:

+37067793645

Email:

info@profitus.lt

Live Chat:

No

Opening Hours:

Weekdays from 8:30AM to 5:30PM

Social Media: