{"id":28552,"date":"2026-10-28T16:00:00","date_gmt":"2026-10-28T15:00:00","guid":{"rendered":"https:\/\/www.wecity.com\/project-evaluation-at-wecity-how-do-we-analyze-and-screen-each-investment-opportunity\/"},"modified":"2026-10-28T16:09:44","modified_gmt":"2026-10-28T15:09:44","slug":"project-evaluation-at-wecity-how-do-we-analyze-and-screen-each-investment-opportunity","status":"publish","type":"post","link":"https:\/\/www.wecity.com\/en\/project-evaluation-at-wecity-how-do-we-analyze-and-screen-each-investment-opportunity\/","title":{"rendered":"Project Evaluation at wecity: How Do We Analyze and Screen Each Investment Opportunity?"},"content":{"rendered":"\n

Access to institutional real estate investment has changed, but the golden rule remains the same: capital protection<\/strong> begins long before the investment is made. At wecity, we receive hundreds of funding requests from developers, but only a very small percentage are actually published on our platform.<\/p>\n\n

Our goal is not to accumulate a large volume of projects, but rather to offer opportunities with a robust legal<\/strong> and financial structure<\/strong>. If you\u2019re thinking about diversifying your portfolio, here\u2019s an explanation of<\/strong> how our risk analysis model<\/strong> works and the criteria each developer must meet.<\/p>\n\n

The Initial Screening: Developer Feasibility and Solvency<\/strong><\/h2>\n\n

Our team\u2019s first step focuses not solely on the blueprints or the property\u2019s location, but on who is behind<\/strong> the project. We thoroughly analyze the developer\u2019s track record<\/strong>, their experience with similar construction projects, their current financial capacity<\/strong>, and their level of debt.<\/p>\n\n

We require the developer to demonstrate a genuine commitment to the project, typically by contributing a significant portion of the capital from its own funds<\/strong>. This alignment of interests<\/strong> is essential to ensure that the developer shares the risk with our investors.<\/p>\n\n

Technical and Commercial Analysis of the Project<\/strong><\/h2>\n\n

If the developer passes the creditworthiness analysis, we break down the numbers for the real estate development. In this phase, we verify:<\/p>\n\n

Timelines and Permits:<\/strong> We review the status of zoning permits and projected construction timelines to identify potential administrative bottlenecks<\/strong> that could cause delays.<\/p>\n\n

Construction Costs:<\/strong> In cases where we finance construction projects, we verify that the construction budget (PEM) is realistic in light of current market prices and potential cost overruns<\/strong>.<\/p>\n\n

Sales Pace:<\/strong> We require a minimum level of presales or pre-marketing to ensure that there is real demand<\/strong> and that the project\u2019s exit strategy (repayment of the debt) is feasible.<\/p>\n\n

The safety net: LTV and collateral<\/strong><\/strong><\/h2>\n\n

No project moves forward toward issuance without solid collateral<\/strong> backing the debt. We strictly evaluate the Loan-to-Value (LTV)<\/a><\/strong> of the transaction, ensuring that there is a prudent margin (safety cushion<\/strong>) between the amount borrowed and the value of the asset as appraised by an independent firm.<\/p>\n\n

In addition, we structure our projects by prioritizing tangible collateral, such as a first-lien mortgage<\/strong>,<\/a> to ensure that our investors have the highest priority<\/strong> for repayment should it become necessary to foreclose on the collateral securing the asset.<\/p>\n\n

Independent Risk Committee and Transparency<\/strong><\/strong><\/strong><\/h2>\n\n

Once all legal, zoning, and financial information has been compiled, the file is submitted to our Investment Committee. This multidisciplinary body makes a collective decision<\/strong>, either approving or rejecting the transaction. Only if the structuring meets our standards is the project made available on the platform.<\/p>\n\n

It is vital to remember that, despite applying all these professional filters, every investment carries risks<\/strong>. Our evaluation process minimizes the likelihood of default and establishes robust recovery mechanisms, but it does not completely eliminate the possibility of partial<\/strong> or total capital losses<\/strong>, nor potential delays in delivery times. Therefore, the best strategy will always be to diversify your capital<\/strong> across multiple investments.<\/p>\n\n

Would you like to explore the current investment opportunities that have passed our risk committee\u2019s review?<\/p>\n\n

Discover upcoming projects on wecity.<\/strong><\/a><\/p>\n\n

<\/p>\n\n

Review risks:<\/em> https:\/\/www.wecity.com\/riesgos\/<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Access to institutional real estate investment has changed, but the golden rule remains the same: capital protection begins long before […]<\/p>\n","protected":false},"author":7,"featured_media":28545,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[347,51,350,61],"tags":[492,493,494],"class_list":["post-28552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crowfunding-en","category-inversion-en","category-real-estate-investment","category-wecity-en","tag-how-to-evaluate-wecity-projects","tag-real-estate-investment-filters","tag-safe-crowdlending"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/posts\/28552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/comments?post=28552"}],"version-history":[{"count":1,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/posts\/28552\/revisions"}],"predecessor-version":[{"id":28553,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/posts\/28552\/revisions\/28553"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/media\/28545"}],"wp:attachment":[{"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/media?parent=28552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/categories?post=28552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wecity.com\/en\/wp-json\/wp\/v2\/tags?post=28552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}