The AREAS Engine

The Ascent Real Estate Analysis System (AREAS) is property portfolio forecasting and modeling system under research and development that will be marketed to the Real Estate investor community. The AREAS Engine is a mathematical kernel that generates data necessary to forecast the performance of 1..N pieces of commercial or residential Real Estate in an investment portfolio. Whether working with 1 property or 100 properties, the AREAS Engine comprehensively constructs performance models based upon key-information supplied to the system.

Side by side, over time, AREAS Engine develops a "visual" of what it would be like to acquire and run the portfolio of property as if it were your own. Once the decision has been reached to purchase a piece of property, AREAS Engine switches roles and gives advice about future acquisitions based upon the assets already in ownership; thus, allowing new acquisitions to be modeled for compatability and performance against existing assets.

Market

The AREAS Engine started out as a separate concept program in recent history designed for the task of purchasing a small volume of Single Family Residences and reasonably and accurately predict their performance. The program was tested the hard way; we invested our own money to prove the program's effectiveness in the marketplace. Subsequent audits of the actual accounting with the simulation revealed an accuracy to with 1/100 of one percent of the projected project costs.

There is a gap in the market for tools that empower investors to foresee problems with owning multiple properties.

Spreadsheets are good tools for modeling a snapshot of a property in time, but they quickly lose accuracies for a realistic appraisal of the the whole portfolio they are used to analyze. The AREAS Engine is being written to solve many limitations of the spreadsheet—most notably, the simulation of discrete events over time. The AREAS Engine yields simulations that approximate the behavior of dynamic assets under ownership, under contract, or under curiosity.

Scope

Our clientele are just as likely to avail themselves of investment opportunities in the residential Real Estate market as well as the commercial market. The AREAS Engine is being designed so that heterogeneous portfolios of Real Estate can be tracked seamlessly together in a single environment. When working with many pieces of Real Estate at a time, the AREAS Engine helps the investor to predict and circumvent bottlenecks in cash flow, provide accurate forecasting, and actually adapt over time taking history into account to provide critical information to the investor.

Each of the virtual properties subject to forecast can be modeled individually and under configurable prevailing market conditions; thus, AREAS engine enables the investor to model portfolios that are split across different segments of the market

The AREAS engine will be integrated into several applications accross several platforms. We are designing the engine so that it can be dropped into existing architectures to leverage its power.

Deployment

The AREAS engine will be integrated into several applications across several platforms. We are designing the engine so that it can be utilized by existing architectures.

We expect to release an initial version of AREAS Engine in Q4 2010.