Investment Adjusted for Risk (IAR) model.
With unprecedented access to real estate investing comes the need for a precise, legitimate method to evaluate risk.
Encouraged by our industry experience, technological acumen, and proven track record of successful transactions, Brelion has built a unique proprietary Investment Adjusted for Risk (IAR) algorithm*. IAR uses quick analytics and detailed information on companies, locations, and trends to estimate risk and returns on any selected project compared to other projects listed on Brelion.com.
Brelion estimates the interest of a loan as defined by the risk associated with it. Our team considers a real estate company’s project and credit history, among a variety of other factors, to help sustain maximum returns on secure crowd investments. Furthermore, a stronger project and credit history may contribute to lower interest rates for the company offering the project.
For crowd investors, the IAR system strengthens your assurance on all investments. It helps you decide which investments are right for you
For real estate companies, the IAR system rewards and incentivizes you to meet or exceed performance metrics to reduce costs on future projects. It provides you with a comprehensive perspective on how your projects perform on Brelion.com.
Brelion has created a taut and robust risk and returns algorithm for investors and companies who share similar goals: for projects to perform well, for knowledge to be precise and available, and for returns to be as high as possible.
This graph compares the estimated risk and returns of a specific project to other projects on Brelion.com. The vertical axis measures projected annualized returns, while the horizontal axis measures projected risk.
Brelion uses proprietary software rates to estimate the Investment Adjusted for Risk (IAR) rate for this project. The A3 rating on the horizontal axis designates the least risk, while the D1 rating designates the most risk. The blue dot shows the IAR rate of this particular project, while the gray dots show the IAR rates for every other project listed on the site.
After reviewing the aforementioned risk factors, Brelion assigns projects a rating on an A-D scale.This rating is not a measure of the quality of the investment, but an estimate of relative risk and returns. A “D”-level project is not inherently worse than an “A”-level, but it does carry more risk. To compensate for this risk, an investor may expect greater potential returns (a higher placement on the graph) on a project closer to the D-spectrum.
Although we cannot recommend investments, Brelion is glad to supply investors with research to augment their own diligence. Different investors have different goals, but everyone benefits from more knowledge resources.
*Brelion is working to constantly improve this IAR algorithm, and will make adjustments as more companies and crowd move through the platform and provide feedback.