IRESE "International Real Estate Securities Exchange"
IRESE is a first Real Estate Derivatives and Securities Exchange where:
IRESE works with Brokers to facilitate original issue of Real Estate Options and Real Estate Notes.
Challenges in Real Estate Finance Market
The real estate finance market is 34% of all investable assets in US and amounts to $15 trillion. It has been in turmoil since 2007: property prices are declining; mortgage foreclosures are on the rise and credit market is in a state of chaos. Real estate financing is limited to the government backed loans, and many property owners do not qualify. The stakeholders in the real estate financing market encounter a number of challenges:
IRESE Solution
Since going live in October 2008, IRESE exchange provides liquidity to mortgages in residential real estate properties, property price decline insurance and debt-free cash to property owners. IRESE works with Brokers to facilitate original issue of Real Estate Options and Real Estate Notes and provides ongoing trading exchange for Investors.
Real Estate Option
A Real Estate Option is a contract based on a time horizon and an expected property value. It is developed based on financial options contracts and adopted to individual real estate assets.
IRESE allows property owners, both residential and commercial, to insure their properties against the risk of price declines and raise debt-free cash. Investors benefit from returns associated with investing in real estate and will be able to diversify their investment portfolios.
Real Estate Note
A Real Estate Note is a fixed income contract with a monthly payment based on a time horizon and a coupon rate. It is developed based on financial bonds that include a risk of recall and a risk of default.
IRESE offers an alternative to non-existing mortgage loan securitization. It allows investors to pick and choose a risk profile based on individual loan criteria and construct an optimal investment portfolio. Ongoing liquidity is provided by investor trading on the exchange. Investors will benefit from returns associated with investing in real estate and will be able to diversify their investment portfolios.
IRESE Exchange
IRESE operates an exchange that functions as a neutral party that administers both the issuance of individual real estate option and note contracts and on-going trading.
IRESE works with licensed brokers to facilitate the original issue of Notes and Options. Brokers perform selling and marketing and all the due diligence to complete the origination.
IRESE resolves any disputes, enforces established contracts and covenants, and facilitates exchange of interests in underlying securities. As a result, IRESE can increase buyer and seller confidence in the system. Investors purchase these securities through Dutch auction and trade them on the exchange.
Benefits
How IRESE works
IRESE works with Brokers to facilitate original issue of Real Estate Options and Real Estate Notes.
Real Estate Option
For Real Estate Options, Property Owners work with Brokers to create option listings and set the maximum price per share they are willing to accept from an investor.
Then the auction begins as IRESE investors can bid up or down the price per share.
Once the auction ends, IRESE takes the bids with the best price per share and combines them into one contract to the property owner and
issues Real Estate Option shares to investors.
Investors can sell their Real Estate Option share positions at will on the exchange.
IRESE handles all on-going contract administration tasks including Real Estate Option payoff and guarantees collections on behalf of the matched property owners and investors.
Investors who register as IRESE Options Investors set the price per share they are willing to pay and bid on Real Estate Option listings they select. In addition to criteria commonly used by institutional investors, such as credit scores and histories, IRESE investors can consider debt to income, loan to value ratio, underlying real estate asset price change and many other criteria in making an investment decision.
Learn more about Real Estate Options.
Real Estate Note
For Real Estate Notes, Property Owners work with Brokers to create Real Estate Note offer listings and set the maximum rate they are willing to pay to an investor.
Then the auction begins as IRESE investors can bid down the interest rate. Once the auction ends,
IRESE takes the bids with the lowest rates and combines them into one loan to the property owner and issues Notes to investors.
Investors can sell their Notes positions at will on the exchange.
IRESE handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched owners and investors.
Investors who register as IRESE Note Investors set the minimum interest rate they are willing to earn and bid on Note listings they select.
In addition to criteria commonly used by institutional investors, such as credit scores and payment histories, IRESE investors can consider debt to income, loan to value ratio, underlying real estate asset price change and many other criteria in making an investment decision.
Learn more about Real Estate Notes.
Learn How IRESE works in more details.
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