Introduction
InDemo is a newly launched Latvian investment platform specializing in non-performing mortgage loans. Opening to investors in June 2023, it offers opportunities to invest in bundles of non-performing mortgage loans originating in Spain. Since its launch, InDemo investors have funded over €1 million.
InDemo Rating: 4/5
Key Information at a Glance
From 15% annually
€10
Yes, as investment brokerage firm
€0
No
Detailed Review
How It Works
InDemo aggregates non-performing real estate loans acquired on Spain's secondary market into debt notes. These notes, starting from a minimum investment of €10, are accessible to registered users on the platform. Each debt note includes eight such loans, with a detailed flow chart tracking progress from initial notification to court-sanctioned real estate acquisition.
All notes are issued by a special purpose vehicle (SPV) as bullet loans, repaying investors at maturity. The standard term is 24 months, but this can vary based on the recovery timeline of the underlying loans.
Returns & Fees
- Interest Rates: from 15% annually
- Average Return Since Launch: To be determined (platform is too young)
InDemo does not impose direct fees on investors. Instead, it generates revenue through a share of the 50% performance-linked interest charged on investment returns. Additionally, the platform withholds a 5% tax on all interest earnings.
Platform Features
InDemo offers an Auto Invest feature, allowing investors to automate their investments based on predefined criteria. The platform provides comprehensive information on each debt note, including the location of the real estate, details on the underlying loans, flow charts for the recovery process, and key investor documents. However, these debt notes cannot be traded on a secondary market before maturity.
Performance and Statistics
Since its launch in June 2023, InDemo investors have funded over €1 million. The platform offers an expected return of 15%, although the actual return depends on the recovery of the non-performing loans. Detailed performance data will become available as the platform matures and more loans reach their maturity.
Regulation and Security
InDemo is regulated by the Central Bank of Latvia, ensuring compliance with strict financial regulations. The platform emphasizes transparency and provides detailed information about each investment, including the legal processes involved in loan recovery. However, the platform does not offer a buyback obligation. Instead, it uses a performance-linked interest model to share returns between investors and the lending company.
Special Considerations
In January 2023, InDemo announced the completion of a €500,000 seed investment round, attracting capital from Latvian tech investors. This funding helped establish the platform and develop its technology, which includes features like detailed maps of real estate locations and comprehensive documentation for each investment.
Despite being a new platform, InDemo has shown significant promise in its initial months. The high-risk nature of investing in non-performing loans is balanced by the potential for high returns and the transparency provided by the platform.
Management and Team
- CEO: Sergejs Viskovskis
- CTO: Daniels Zirjakovs
- CFO: Aleksandrs Volosins
- CRO: Pavels Pochtarenko
The InDemo management team consists of professionals with extensive experience in finance and technology. Their combined expertise ensures that the platform is innovative and responsive to investor needs.
Conclusion
InDemo offers a unique investment opportunity in non-performing mortgage loans with the potential for high returns. The platform’s focus on transparency and rigorous loan recovery processes, coupled with its regulatory oversight, makes it an intriguing option for risk-tolerant investors.