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 in Numbers
Whenever looking for a new platform to invest in, we strongly recommend having a look at the platform’s statistics.
Luckily, Profitus understands that having a dedicated statistics page will increase users’ trust in their platform. The same cannot be said for platforms like Lenndy, Ekassa or Fellow Finance, which share very limited data.
|Investor's earnings:||+ €300.000|
|Total loan value:||+ €9.6 M|
|Amount of investors:||+ 950|
|Loss of investor's money:||0%|
|Average portfolio size:||2,243|
|Latest financial report:|
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 Grupeer, Bondster or Viainvest.
Unfortunately, Profitus does not publicly share their 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 currently offers a 1% cashback bonus for new investors calculated from their investment within the first 30 days after registration.
Ready to invest?
Profitus’s New User Requirements
Profitus users can register either as a private investor or as a company. In order to register, users need to be at least 18 years old and have a Paysera account (money transfer service) or any other European bank account.
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 your Paysera account to verify your identity. Note that if you decide to do this, you can only deposit funds to Profitus via Paysera.
- Use the Know Your Customer (KYC) verification service, Ondato, which is also used by other platforms like EvoEstate. When using this method, you will need to take a selfie and a photo of your passport or ID card.
As we don’t have a Paysera account, we verified our account with Ondato. When verifying your identity, use a smartphone with the Chrome browser, as this results in better quality images.
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’s 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.
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
- Paysera and Trustly, which manages investors’ funds, because these 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) remains with investors.
Profitus helps to facilitate those transactions and deal with the paperwork. It also allows investors to invest in Lithuanian real estate projects with 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 10.36% 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 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.
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?
Since the fall of platforms like Kuetzal and Envestio, investors have more concern regarding where they invest their money. As a young P2P platform, Profitus might raise certain concerns..
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 10 years of experience in the real estate industry.
Viktorija is very active on social media, and should you wish to meet her, you can find her at various events like the recent Paris Fintech Forum.
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.
When reviewing other platforms, we have spotted several suspicious clauses in the terms and conditions. Read our Fast Invest and Ekassa review to find out more.
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:
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.
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.
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 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.
Here are some issues that you, as an investor, should bear in mind when investing on Profitus, and some other, new, P2P sites :
- Lack of investment opportunities
- No secondary markets
- No auto invest tools
Lack of Real Estate Projects
As we write our Profitus review, there are no available projects to invest in. As you can see, most of the projects are funded within minutes and hours, so if you are not keeping your eye on new investment opportunities, it’s likely you’ll be late to the party.
According to Profitus, the platform has less than 1,000 registered investors. When looking at the data, you will see that most projects are funded by less than 200 investors, and the projects with lower loan volumes are funded by less than 100 investors.
Unless Profitus starts listing new investment projects, it is going to be very hard for investors to build well-diversified portfolios here. According to Profitus, the platform aims to list at least five new projects every month.
Accurate due diligence of real estate projects takes up to six months to complete. So, if you decide to invest on Profitus, you should be patient. We certainly appreciate real estate platforms that emphasize quality over quantity. At the end of the day, no investor wants to invest in a real estate project that hasn’t been properly assessed.
Hidden Project Information
Some of the P2P lending platforms hide project information from investors that have not participated in crowdfunding.
In our opinion, this is not helpful in gaining investors’ trust. In a scenario where a new investor joins the platform and none of the projects are available to fund, it would be beneficial to have a look at previously-funded projects.
Unfortunately on Profitus, this information is hidden.
While having the opportunity to invest in real estate loans from Lithuania is a great way to diversify your real estate P2P portfolio, investing on Profitus will require patience. Other P2P real estate platforms such as Crowdestate and EstateGuru list several new investment projects every week. They also provide an auto invest tool, so investors can automate their investment strategy, which isn’t possible on Profitus yet.
When using platforms like EvoEstate, EstateGuru and Crowdestate, you can sell your investment on the secondary market should you wish to.
This is not the case with real estate platforms like Profitus, where you need to wait until the end of the loan term or until the borrower repays the loan in order to withdraw your investments. This can take from six to 18 months.
If you want to be able to have access to your money, we suggest using other P2P lending platforms.
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 email@example.com
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.
Most of the projects are funded within minutes, which is good for the platform, but can be bad for the investor as it often results in difficulty when building a diversified portfolio.
If Profitus manages to increase the availability of the real estate investment projects, while maintaining the quality of the risk assessment, we are certain that it can become a good alternative to already established platforms such as EstateGuru or Crowdestor.
Tempted to try Profitus?
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 collateral, which is, in most cases, the first-rank mortgage. Find out more about the securities within the project description.
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.
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.
|Address:||Lvovo st. 101, Vilnius, Lithuania|
|Opening Hours:||Weekdays from 8:30AM to 5:30PM|