Why is the Bauskas development project getting refinanced on another platform?
The main reason for that - a lower % rate for the Borrower.
Why did we simply not lower the interest rate for the Borrower?
The Bauskas project was providing a 13%+1% (bonus) return for Reinvest24 investors. Currently, our average project return is 14.8-14.9%. We have plenty of other attractive opportunities to offer to our investors, therefore it should be considered as an advantage to earn more.
Is it legal to take loans on several platforms?
The short answer is Yes. There is a big difference in loaning from several places at the same time, which also could be tricky from a collateral and loan refinancing point of view. In the case of refinancing - there is no issue with collateral, as it’s being passed over to the refinancing company if the payout covers all the previous obligations of the Borrower. Besides, peer-to-peer stands for collaboration and we are happy to collaborate, in order to achieve the same goal.
How is it possible that the project on both platforms has a 1st rank mortgage? Who has the priority?
Currently, the collateral is in favour of Reinvest24 investors, it will be deleted once the notary's escrow account will receive the full payment and new collateral will be set in favour of other investors.
When will the repayments be done?
As of today, the project has been paying monthly interests without any delays. We expect the principal repayment to happen during the coming weeks. Also, It depends on the speed of the Latvian Notary to make this transaction.
What does it mean for Reinvest24 investors?
This means another successful exit for Reinvest24 investors - as we are ahead of schedule and the project will be repaid before its maturity day. We would like to congratulate everyone that took part in this project, as it earned 13-14% p.a.
Important information to bear in mind:
On Reinvest24, the Bauskas project was providing investors with 13-14 % annual interest and current (actual) LTV of 52% instead of the stated maximum of 67%. The refinancing terms are a bit different, offering 11% p.a. with an estimated LTV of 75%.