How do I place a bid?

To bid on Real Estate Note auctions, you must be a member of IRESE. You must also complete your Investor Account Setup. Become an Investor now.

Because placing a bid requires the bid amount to be available from your IRESE account, you must first transfer funds to IRESE before you can start bidding.

Once you have completed all of the above steps, just before you start to investing, you should read about the ins and outs of understanding Real Estate Note.

Once your account has funds for bidding, you are ready to bid. Go to the "Invest > Bid on Notes" page and search for a Real Estate Notes auctions that you would be interested in bidding on and click on that auction's title. Take me there

Financing Information

When you get to the auction page, you can view some information about that auction:

• "Amount" @ "Interest Rate" For "Term": This is the dollar amount that is being financed, and the current interest rate that Investors have to bid at, or below to win the Real Estate Note. If the Real Estate Note is fully funded, thus there are enough bids to meet the Real Estate Note amount requested, Investors will have to bid less than the current listed interest rate to participate in this Real Estate Note.
• End bidding, once all shares are sold: If displayed, indicates that the Broker has selected an "End bidding, once funded" option. End bidding, once funded means that the auction will close as soon as the requested amount is funded. This scenario can happen when the Broker is less interested in getting the absolute lowest interest rate, and is more interested in getting a Real Estate Note financing quickly.
• Funded: This shows how much of the amount is requested that has been funded by bids. If the full amount requested is funded, the funding bar turns green, and "100% funded" is displayed. Even though an auction is 100% funded, you can still participate if you are willing to bid at a lower interest rate.
• Bids: This shows how many bids have been placed on this particular auction. Clicking on the number of bids will take you to "Bid History" section of the page. You can click on to see all bids.
• End time: This is when the bidding ends.
• Monthly payment: The monthly payment is the total amount that the payment will be for the requested amount and the amount per note at the current auction interest rate. If the auction receives enough bids to drive the interest rate down, the monthly payment will also go down.

Property Information

Broker provided an important data about the property.

Property Detailed Profile

In this section, you get more information on property "Lot Details", "Interior Details" and "Local Area".

Financial Profile

Financial profile section provides status on property owner finances and a property related debt.

Broker Question And Answers

Each auction has a section called "Questions & Answers", where Investors can ask Brokers questions about their auction. Learn more broker question and answers.

Area Map

This section maps property physical address on the map. Various types of maps are provided.

Bid History

Before bidding on an auction, you should look at the bid history to understand how many Investors are bidding on a Real Estate Note, and how much money each one has offered to put up for the Real Estate Note. Learn more bid history.

To begin placing a bid, click the "Place Bid" button.

You will then be asked to enter the following information:

• Amount: Enter the amount you wish to bid on this auction. You may bid as little as $100.00 or more and as much as the entire amount requested in the auction.
• Minimum rate: Enter the minimum interest rate that you would be willing to receive on the Real Estate Note if you are a winning bidder. Unlike some auctions where the price is bid up, IRESE bids on your behalf down to your minimum rate. So if you are a winning bidder, there's a chance that the interest rate you earn on this Real Estate Note will be higher than your minimum rate. One other important note: your minimum rate is kept confidential from other bidders and the Broker — only you know what it is.

After clicking continue, you will be shown the bid data you specified on the same page, and asked to confirm your bid. A few very important things to note about bidding before you click that "confirm bid" button:

• When you place a bid, funds are immediately set aside in your account for that bid.
• By placing a bid, you are committing and promising to fund and purchase the Real Estate Note should your bid be matched.
• If you are a winning bidder, funds will be automatically transferred from your account to the Broker's account when the auction passes review and funded.
• If you are not a winning bidder, funds will be immediately made available for you to bid again elsewhere.
• Bids cannot be withdrawn at any time.

What rate should I bid?

You should bid an interest rate that takes into consideration both the mortgage risk profile, the rate adjustment due to defaults, and the IRESE Real Estate Note servicing fee. Learn more about pricing your bids.

Why are funds taken out of my account each time I bid Real Estate Note?

Actually, the funds are never withdrawn from your IRESE account. However, they are set aside, or put in a holding tank of sorts, while the auction you are bidding on are active. If you won all of your bids, then all of those Real Estate Note shares would need to be paid as soon as the auction closed.

There are a few occasions when your placed bid will be released and made available again for bidding:

• If the auction ends and you are outbid.
• If the auction ends with insufficient funding, i.e. not enough bids were placed to cover the number of share of the financing request.
• If the Broker cancels the auction early.

Why am I always outbid by others who bid the same rate?

If you were outbid, it means that other Investors bid at a lower minimum interest rate than yours. Other Investors' interest rates are not displayed, so even though it might look like they are bidding at the same rate you bid, that is not necessarily the case. This hidden bid auction style guarantees the best rates for everyone involved.

If you notice that the interest rate on the auction has dropped since you placed your bid, you may still participate by placing a new bid on the auction with a lower minimum rate.

What does it mean to be "partially winning"?

Because there are cases, such as the case of the other Investor with the bid with lower minimum interest rates are preventing other Investors from participating fully in a Real Estate Note, we allow Investors to be "partial winners" in an auction. This means that only a portion of the Investor's bid was used in funding the Real Estate Note.

Investors with "partially winning" bids can place new bids to get more participation in the Real Estate Note auction.

If my bid is partially winning, can I use the non-winning amount to bid again?

Yes, you can use the remaining available bid funds to make a new bid on any auction, which is return to your cash account immediately.