- Wecity’s AutoInvest: the tool to automatically invest in real estate projects
Wecity’s AutoInvest: the tool to automatically invest in real estate projects
If you’ve been investing in real estate crowdfunding platforms for a while, you’ve probably experienced something similar: you see an interesting project… but when you get involved it’s already funded.
Many projects are completed in a matter of minutes, and we can’t always be on top of the exact time every opportunity opens up. Between work, family, and a thousand other things in our daily lives… it’s not always easy.
That’s why we found it interesting when at the Wecity event in Madrid (link to the article where we talked about that event) they told us they were working on a tool to automate investments.
Now it’s a reality.
It’s called AutoInvest and it allows you to configure certain criteria so that the platform automatically invests in projects that match what you’ve previously defined.
However, the tool is currently in beta , meaning it is being tested and adjusted within the platform.
Today we’ll tell you how it works and what options it allows you to configure.
What is AutoInvest at Wecity?
AutoInvest is a feature within the Wecity platform that allows you to automate entry into real estate projects .
Instead of having to manually enter each time a new opportunity opens, you can set a series of parameters (such as the amount you want to invest, the minimum interest rate, or the maximum term).
If a project appears that meets those conditions, the investment is automatically executed from your account , always within the limits you have set.
The idea is to make it easier for us to participate in projects without having to keep an eye on the clock every time a new one is published .
This system is part of what European regulations call individualized loan portfolio management , where the investor defines the criteria and the platform executes the investments within that mandate.
Before activating it: the risk test
To use AutoInvest, you must first complete the risk profile test within the platform .
This test helps identify what type of investor you are and what your risk tolerance is. Wecity classifies investors into three profiles: Conservative, Moderate, and Dynamic.
In our case, for example, the result was a moderate profile , which means that the strategy is geared towards combining projects with a medium level of risk along with more stable ones.
This profile allows the platform to maintain consistency between risk and return within the investment portfolio .
Once this step is completed, you can access the AutoInvest settings.
How to set up AutoInvest step by step
The tool allows you to adjust various criteria to define what type of projects you want to invest in automatically .
Let’s look at each one.
1. Maximum ticket per transaction
The first parameter is the maximum amount you want to invest in each project .
For example, you can set AutoInvest to invest up to: €500, €1,000, €3,000; or any other amount you prefer.
This is useful for maintaining some diversification , instead of investing too much in a single project.
2. Minimum annual interest
Another filter that can be configured is the minimum profitability that the project must have .
The options that usually appear are:
- 9%
- 10%
- 11%
- 12%
If you set, for example, a minimum of 11% , the tool will only automatically invest in projects that have that interest or higher.
3. Maximum project timeframe
You can also define how long you want to keep the money invested .
The options that appear are:
- 12 months (+ possible extension)
- 18 months (+ possible extension)
- 24 months (+ possible extension)
This allows you to adapt the strategy depending on whether you prefer shorter projects or slightly longer timeframes .
4. Project risk level
Wecity assigns a risk rating to each opportunity .
With AutoInvest you can decide from what level you want automatic investments to be made.
For example:
- AAA
- AA
- TO
- BBB
- BB
According to the platform’s information, the projects that are published usually have a rating between A and AAA , which correspond to quality levels considered high within its evaluation model.
This way, you can limit the tool to only investing in projects that match your risk level.
How to assess project risk
Wecity’s risk assessment system combines external and internal analysis .
Part of the model has been developed in conjunction with the specialist firm Moore Global , which analyzes three main elements:
- The project promoter (experience, financial situation, track record).
- Real estate development (estimated profitability, urban or commercial risks).
- The loan (ratios such as Loan To Value or Loan To Cost).
Each of these factors has a weight within the final rating of the project.
In addition, the guarantees associated with the operation are also taken into account , such as mortgage guarantees or collection rights.
This system seeks to offer a structured risk assessment before publishing projects on the platform .
The investment mandate
When using AutoInvest, Wecity also takes into account various factors to avoid excessive concentrations of risk within the investor’s portfolio.
Among other things, the system attempts to maintain a certain degree of diversification by taking into account:
- different expiration dates
- different promoters
- varied geographical locations
- various real estate sectors (residential, logistics, etc.)
In addition, the platform sets certain limits to prevent excessive concentration on a single promoter or type of project.
All of this is always applied respecting the parameters previously defined by the investor .
For many female investors, one of the difficulties with this type of platform is that interesting projects are funded very quickly .
AutoInvest is trying to solve precisely that.
It may be useful if:
- You can’t always connect when a project opens
- you want to maintain a more consistent investment strategy
- You prefer to automate part of the process
That said, as we always discuss in the Investors Club, automation does not mean ceasing to understand where you invest .
Participatory real estate investments have risks, and each project has its own characteristics.
If you want to explore the platform, you can do so from here:
