How do I read the 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 amount each one has offered to put up for the Real Estate Option auction.

The bid history shows three types of Investors:

• Winning: If the full amount of a Investor's bid is being used to fund the Real Estate Option, it will be considered "winning". If another Investor offers a price per share, however, the winning bid could become outbid.
• Partially winning: If only a partial amount of a Investor's bid is being used to fund the Real Estate Option, it will be considered "partially winning", and the outbid portion of the bid will be returned to the Investor's account immediately. If a Investor is partially winning, it is also an indication that he or she is the next Investor who will be outbid as new bids come in.
• Outbid: If none of a Investor's bid is being used to fund the Real Estate Option, it will be considered "outbid", and the full amount of the bid will be returned to the Investor's account immediately.

The bid history shows the following additional information:

• Shares: This shows the number of shares the Investor bid.
• Price per share:If a Investor is outbid, this shows the Investor's bid. If winning (or partially winning), this shows the Investor's current winning bid.
• Bid date: The date and time of the Investor's bid. If two Investors enter the same price per share, the Investor who bid first will get preference to participate in the Real Estate Option.

How are winning bids determined for Real Estate Call Option?

Once there are enough bids to fund a Real Estate Call Option, the price per share is determined by the number of Investors bidding and the price per share they've bid.

For example, suppose an auction is for $200,000 Real Estate Call Option and 500 shares are offerred for bidding.

Auction details

Amount: $100,000
Option Contract: $1,200,000 Strike Price, 5 years term.
Option Price: $200,000 Price per Share: $200 Number of Shares: 500

Bid History

• 50 at $200
• 100 at $220
• 200 at $235
• 300 at $250
• 100 at $275
• 10 at $300

In this example, the bid-to-cover ratio is 1.85, meanting $184,500 in bids for 500 shares at $200 minimum ($100,000 amount); therefore, not every bidder will receive shares. Bids will be filled from the highest price until the entire $100,000 has been covered. This auction will clear at a price per share of $250 and all bidders will get that price. This feature of the auction format leads to more aggressive bidding as those who in this case bid $300 will receive the option at the lower price per share of $250.

Note: Bids shown are larger than average for illustration purposes only. IRESE encourages Investors to make much smaller bids per Real Estate Call Option.

Bids are sorted by the price per share offered, favoring higher price per share, and the time the bid was placed, favoring early bidders, until enough funds are available to fully fund the Real Estate Call Option. Bids with the highest minimum price per share are given priority in the bidding hierarchy, even though the Investor's maximum price per share is not shown on the auction. Any bids with non-zero participation are considered "winners".

How are winning bids determined for Real Estate Put Option?

Once there are enough bids to fund a Real Estate Put Option, the price per share is determined by the number of Investors bidding and the price per share they've bid.

For example, suppose an auction is for $10,000 Real Estate Put Option and 500 shares are offerred for bidding.

Auction details

Amount: $10,000
Option Contract: $800,000 Strike Price, 5 years term.
Option Price: $20,000 Price per Share: $20 Number of Shares: 500

Bid History

• 50 at $20
• 100 at $18
• 200 at $17
• 300 at $15
• 100 at $12
• 100 at $10

In this example, the bid-to-cover ratio is 1.29, meanting $12,900 in bids for $10,000 amount; therefore, not every bidder will receive shares. Bids will be filled from the lowest price until the entire $10,000 has been covered. This auction will clear at a price per share of $17 and all bidders will get that price. This feature of the auction format leads to more aggressive bidding as those who in this case bid $10 will receive the option at the higher price per share of $17.

Note: Bids shown are larger than average for illustration purposes only. IRESE encourages Investors to make much smaller bids per Real Estate Put Option.

Bids are sorted by the price per share offered, favoring lowest price per share, and the time the bid was placed, favoring early bidders, until enough funds are available to fully fund the Real Estate Put Option. Bids with the highest minimum price per share are given priority in the bidding hierarchy, even though the Investor's minimum price per share is not shown on the listing. Any bids with non-zero participation are considered "winners".

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.