Who can place a bid?

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

To place a bid on a Real Estate Call Option auction requires the full 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 Options.

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

How do I understand an auction information?

A Real Estate Option auction page will contain a number of section to help you to choose your bid.

Financing Information

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

• Type of an option: Real Estate Call Option or Real Estate Put Option.
• Option contract: Each option has Option Price (total and price per share), Contract Term (years) and Strike Price (future expected property value).

  Each option contract has a price, term, and strike price and number of shares available for bidding. Real Estate Option contract is divided into 1,000 shares. Learn more about Real Estate Options.

  If all shares for a given Real Estate Option are sold, Investors will have to bid less than the current listed price per share to participate in this Real Estate Option.

• End bidding, once all shares are sold: If displayed, indicates that the auction will end once all the shares are bid on. End bidding, once all shares are bid on means that the auction will close as soon as the requested number of shares is funded.
• Funded: This shows how many shares are available for bidding and how many that has been funded by bids. If all the shares are 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 better price per share.
• 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 auction ends.

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 Option, and how much money each one has offered to put up and at what price per share for the Real Estate Option. Learn more bid history.

How do I place a bid?

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

You will then be asked to enter the following information:

• Price per share:
  • For Real Estate Call Option, enter the maximum price per share you would be willing to pay on the Real Estate Call Option if you are a winning bidder. The auction system bids on your behalf up to your maximum price per share. So if you are a winning bidder, there's a chance that the price per share on this Real Estate Call Option will be lower than your maximum price per share set.
  • For Real Estate Put Option, enter the minimum price per share you would be willing to receive on the Real Estate Put Option if you are a winning bidder. The auction system bids on your behalf down to your minimum price per share. So if you are a winning bidder, there's a chance that the price per share on this Real Estate Put Option will be higher than your minimum price per share set.
  One other important note: your price per share is kept confidential from other bidders and Brokers — only you know what it is.
• Number of shares: You may bid as little as 1 share and as much as all shares offered on the option. Enter the price per share you wish to bid on this auction.

How do I confirm the bid?

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:

For Real Estate Call Option

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

For Real Estate Put Option

For Real Estate Put Option, if you are a winning bidder, funds will be automatically transferred to your account to when the auction is funded and you sign the agreement.

Bids cannot be withdrawn at any time.

What rate should I bid?

You should bid a price per share that takes into consideration expected real estate property value and volatility. Learn more about pricing your bids.

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

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 Call Option 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 price per share?

If you were outbid, it means that other Investors bid at a better price per share than yours.

• For Real Estate Call Option, a higher maximum price per share wins.
• For Real Estate Put Option, a lower minimum price per share wins.

Other Investors' prices per share are not displayed, so even though it might look like they are bidding at the same price you bid, that is not necessarily the case. This hidden bid auction style guarantees the best price per share for everyone involved.

If you notice that the price per share on the auction has change since you placed your bid, you may still participate by placing a new bid.

What does it mean to be "partially winning"?

Because there are cases, such as the case of the other Investor with the bid with a better price per share are preventing other Investors from participating fully in a Real Estate Option, 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 Option.

• For Real Estate Call Option, a higher maximum price per share wins.
• For Real Estate Put Option, a lower minimum price per share wins.

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