Scottsdale, Ariz. – April 11, 2020 – Modulus, a US-based developer of ultra-high-performance trading and surveillance technologies that power global exchanges and financial institutions, today announced that it has launched a real estate fund based on its patent-pending Modulus Property Analytics System. Earlier this week, the company launched an AI-driven property valuation, forecasting, and timing system, drawing on decades of experience in predictive analytics, artificial intelligence, and high-performing computing.
“Our system performs property generation, property analysis, and strategy automation, identifying properties in pre-foreclosure or post-foreclosure. It analyzes property details and other factors, including the local housing market, overall market conditions, the financial markets, and other economic data — as well as data specific to the COVID-19 crisis,” noted Richard Gardner, CEO of Modulus. “Our models, which observe social and economic costs, are proven to correctly identify crisis-related market movements to within one day.”
Modulus has been developing highly accurate predictive analytical models for the world’s largest hedge funds and real estate investment funds for decades. It has developed technologies which power Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Morgan Stanley, HSBC, TD Ameritrade, and CME Group initiatives. In 2016, NASA chose Modulus to develop a custom solution which graphs high-frequency telemetry and health data from the International Space Station, a first in aerospace history.
“Congress has acted to attempt to blunt the effects of the looming economic crisis, but the magnitude of what’s coming is greater than anybody can fathom. Unless the PPP is altered, as written, it would foreshadow mass layoffs among small businesses in July. And, top healthcare professionals, including Dr. Fauci, predict a potential second round of the coronavirus coming this fall,” noted Gardner. “According to Realtor.com, for the week ending March 28, newly listed homes dropped 34% year-over-year. The market is already stagnating. That’s what’s making headlines today, but the headlines of tomorrow will be much different: foreclosures. It’s simple: as more and more people are out of work, they’ll be unable to pay their mortgages.”
According the Federal Reserve Bank of St. Louis, Q2 unemployment could reach as high as 40.6%. During the Great Depression, peak unemployment reached 24.9%. “Using conservative estimates, the aftermath of this crisis will be worse than most people can remember, even worse than the housing crisis of 2008. In a worst-case scenario, a bad dream turns into a nightmare — a catastrophic reality that will affect 50% more people than the Great Depression, the worst financial calamity in American history. Investors should be ready, but the sheer volume of this coming deluge of foreclosures will make it impossible analyze without assistance. That’s where Modulus’ real estate fund comes in. Instead of picking winners and losers based on our intuition, we have employed the world’s most reliable big data analytics technologies to find the properties with the best ROI potential,” said Gardner.
This technology-based fund will allow fund participants to capitalize on secured real estate transactions and provide a potential tax shelter against the upcoming increase in tax rates, which will be necessary after the passage of a historic stimulus package in response to COVID-19.
“Modulus technology can analyze REO blocks quickly. It can accurately predict the best potential investments, the holding period, and the best time to sell,” explained Gardner. “In addition to purchasing REO properties, the Modulus fund will purchase properties at auction. Regional teams of Realtors will be retained to fill properties purchased by the fund, generating annuities for investors while waiting for best time to sell.”
There is currently no real estate fund which has implemented this type of advanced analytics technology, allowing the fund to determine, in real-time, the properties best suited to maximize investment dollars while minimizing risk. Modulus has a history of developing the most powerful analytics and risk management systems in the world. In 2009, the company developed what has become the world’s largest social media sentiment analysis system. This system was later adapted to analyze stocks and real estate. In 2014, Modulus developed the SharpeMind platform, which, in real time, processes millions of unstructured financial documents.