Patent ID: 8280798

Claim:
A computer system configured to create an investment fund to diversify risks in directly owned real estate assets, wherein the investment fund is configured to be purchased in proportion to a dollar amount of directly owned real estate assets, the system comprising: memory storing processor executable instructions; and a processor executing said processor executable instructions, wherein said processor executable instructions when executed causes said computer system to perform steps comprising: (a) selecting a target range of proportions of monetary value in directly owned real estate assets to monetary value in investments to be made in an investment fund, and selecting at least one performance criterion for the target range; (b) selecting a target geographical region; (c) identifying a composite portfolio that comprises (i) at least one directly owned real estate asset in the target geographical region, and (ii) variable assets that are more liquid than the at least one directly owned real estate asset, and wherein the composite portfolio is configured such that the proportion of monetary value of the at least one directly owned real estate asset to monetary value of the variable assets is within the target range; (d) calculating an allocation of the variable assets in the composite portfolio that diversifies risks associated with the at least one directly owned real estate asset in the composite portfolio, said calculating comprising: treating the at least one directly owned real estate asset in the composite portfolio as a non-variable asset, calculating a risk profile for the non-variable asset based on data relating to value of the at least one directly owned real estate asset in the target geographic region, calculating a mix of the variable assets that has a risk profile that complements the risk profile of the non-variable asset, performing at least one iteration of: calculating performance of the composite portfolio, based on said mix of the variable assets, at a plurality of proportions in said target range of proportions, to ensure that said mix of the variable assets diversifies risks in real estate in the target geographical region when purchased by individuals in different amounts within the target range of proportions, terminating the at least one iteration when the performance satisfies said at least one performance criterion, and refining the mix of the variable assets when the performance fails said at least one performance criterion; and selecting said mix of the variable assets as said allocation that diversifies risks associated with the at least one directly owned real estate asset; and (e) configuring the investment fund based on the mix of variable assets in the selected allocation, and making the investment fund available for purchase by individuals who directly own real estate assets in the target geographic region.