As you may have noticed, each of our investment opportunities is defined by a score.
The Scoring feature enables the investor to have a rating reference to the opportunities available for investment. We analyze the risks and benefits of each opportunity and place a score on each one to help you decide where you want to invest.
What is Scoring?
Scoring is a rating system that serves to measure the risk and better define the type of returns an opportunity can give. We have now added this new function so that you can make more informed decisions when it comes to your investments.
This system is similar to that of purchasing a property, in which there is a process of valuation where the bank studies your profile as a client, the capacity for return or risk of missed payment. Through a series of factors, scoring allows us to assign a rating on each one of our opportunities of investment at Housers and help decide whether to invest or not.
How does it work?
All the projects will go through a process of analysis that takes into account the risks as well as the interest rates of our opportunities. The Risk Department at Housers goes through an extensive analysis of all the risks associated with every opportunity published on the platform. After the analysis, those projects that still fit the criteria to be an investment opportunity are then published along with a rating.
For our investors, this new scoring system at Housers will help to determine in a more immediate matter what the score of each opportunity is.
What is the scoring based on at Housers?
We have developed this system to both guides you and show the transparency of both the risk and benefits of all our opportunities. Several factors go into the analysis process that ultimately assigns a rating of the mayor or minor risk to each opportunity.
- 50% of the risk score comes from the analysis done through the Real Estate point of view:
- Project Developer’s Experience
- Sale Price
- Valuation Price
- Big Data Price
- The remaining 50% of the risk score comes from the financial analysis of the opportunity:
- Financial Ratios
- Working Capital
- Credit Capacity Models
The levels are represented with levels that go from A – representing the minor risk, up to G – representing the major risk.
For example, an opportunity with a score of A or B will have less risk but most likely less annual yield.
As seen in the image above, each opportunity will display it’s rating next to the country’s flag.
So what are you waiting for? Try out the new scoring system by checking out the opportunities on the platform.