#6277 Bridge loan - 1.stage (Latvia) Opened: 07.12.2018

  • #6277 Bridge loan - 1.stage (Latvia)
  • #6277 Bridge loan - 1.stage (Latvia)

Executive Summary

    • The loan is used to finance the purchasing of a property.
    • The loan will be repaid by refinancing with a long-term bank loan.
    • The loan is secured with a first rank mortgage.
    • Borrower adds a 1% bonus to annual interest for investments of at least €10,000 (combined annual interest 13%).
    • The property and the development project, which is part of the collateral asset, is a new development for the inhabitants of Riga, in the popular Purvciems neighbourhood, providing quick and convenient access to the city centre by car and by public transport. The borrower's plan is to create a new high-rise building with beautiful architecture and diverse value. A building of up to 16 floors, which has up to 240 one to four-room apartments, will be built. Up to 200 parking spaces and add-on storage spaces, spacious lobby, beautiful courtyard with children's playground, storage space for bicycles and baby carriages, well-designed interior design packages with the possibility to use smart home solutions, etc., will be built in the house. From the terraces and balconies of the house, there will be beautiful views of the area. The property is surrounded by a variety of entertainment options and one of the largest shopping centers in the Baltics. Within walking distance is the largest green area - Mezciems, with its health trails and sports complexes. Highly valued Purvciems schools, hospitals, museums and sports clubs, and Riga Universities are pleasantly close to comfortable living arrangements.
    • The collateral property is a land plot sized 4300 m2. The development project will help meet the regional demand for new flats that are energy-efficient, well-planned and affordable.
    • Additional information about the project's presentation: http://www.perton.ee/D74C

    Riga real estate market as of the second half of 2018

    Positive trends in the real estate market of Riga can be noticed: in the largest city in the Baltic States, developers are becoming more active and are launching more and more large projects on the market. With a stable and favorable economic environment, Riga has the largest potential for growth in the Baltics. Developers have begun to invest in the quality of their creation, as in the eyes of customers, aesthetics have become increasingly important factors in shaping their purchasing decisions. In 2017 and 2018, the prices of both renovated apartments and new developments in Riga residential quarters and in the heart of the city have increased. The demand for new apartments is growing and, as a result, more and more new building permits are issued.

    In 2017, a total of 1458 apartments were built in Riga, an increase of 16% compared to 2016. By 2018, according to specialists, it is expected that about 2000 new apartments will be added. Although the average price of apartments has risen, local residents are still looking for apartments in the price category of 80,000 euros. Due to changes in the government's guarantee program, residents aged under 35 are expected to be most active in the real estate market. Smaller two-room apartments with an area of approximately 50 m² and three-room apartments with an area of 60-70 m² are most interesting to the customers.

Loan Terms

Loan Contract Number

Please register or log in to see full details.

Log in / Register
Quick Overview
  • 12.0%+1.0%
    Investment > €10,000 = 1.0% bonus
90.6% filled, 631 investors €26,203 left
  • Expires 3 days
  • Target €280,000
  • Collateral value €470,000
  • LTV 60.0%
  • Projected LTV 60.0%
  • Loan Period 12 months
  • Schedule Type Full bullet
  • Mortgage Rank First rank
  • Property Type Land plot with building rights
  • Loan Type Bridge loan
  • Location Latvia

Please register or log in to see full details.

Log in / Register


  • You must be at least 18 years old and have a bank account in any of the EEA member states or in Switzerland in order to lend through EstateGuru. We also have to perform certain "know your customer" checks before you can start investing with EstateGuru.
  • The minimum investment amount is €50.
  • Depending on the project characteristics the annual interest rate can range between 8% and 13%.
  • All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee on behalf of the investors). The Security Agent is a separate limited liability company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru. The name of the entity is EstateGuru Tagatisagent OÜ. The entity is controlled by the leading Baltic law office of Jesse&Kalaus
  • EstateGuru makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.
  • EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru’s operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.
  • The Estonian Financial Conduct Authority (FCA) has confirmed in 2014 that any laws or regulations that apply to credit institutions or to broker-dealers do not apply to us as EstateGuru is not a finance provider but a facilitator. The FCA expected to release a new marketplace lending specific regulation in 2017.
  • EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.
  • After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.
  • An unsecured loan is a loan which does not have any collateral in place, such as land or apartment, and is solely based on a borrower’s credit history and potential ability to repay. Secured loans have assets as collateral so that, if a borrower cannot repay the loan, EstateGuru's partnering law firm Jesse&Kalaus will start the asset sales process. Hereby, the risk of losing the money is minimized.
  • First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document. Transfer money to your EstateGuru virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your EstateGuru account
  • No fees apply to investors. All expenses are covered by the borrower.
  • Yes. You need to create an investor account with your own name and in the end of the registration form, you have to choose “Select this if you represent a company”. Make sure to add the full name of your business and the correct registry code. Before investing you are required to send us an accurate copy of your government-issued identification document.
  • We do not pay interest on uninvested funds. To get the best return from using our platform you should invest your money into open projects to minimize uninvested funds. EstateGuru also has an Auto Invest function which will take care of your investments without you having to worry about it.
  • You will start earning interest after the required documentation and creation of pledge is completed.
  • As soon as the borrower is late in repaying an instalment, we will make contact on behalf of our investors to find out the reason behind the delay. In case of a delay, the borrower shall pay a fine specified in the general loan terms clauses 9 and 10. When the borrower faces financial difficulties, we will try to find the best solution for both parties. If the borrower is not able to repay the loan, the borrower will be given the option to take a repayment break. If the borrower is still unable to repay the loan, we will cooperate with the law firm Triniti, who will act towards recovering the debt.
  • In case the borrower wants to extend the loan period, EstateGuru will investigate the reasons and assess the situation accordingly. If the loan period is to be be extended, the borrower will be obliged to pay a fee to cover additional documentation expenses.
  • The aim of inspecting the borrower is to assess the company's ability to pay back the loan. We do a thorough investigation of the borrowers’ background, creditworthiness and current obligations. If applicable, the business plan and financial statements will also be investigated.
  • Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.
  • The interest that you receive from borrowers is gross income, which means that EstateGuru does not deduct any tax from the amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but will still be liable for tax. EstateGuru does not provide tax-related advice and recommend that you turn to a local tax advisor for additional information.