Who are the property owners?

A private IRESE property owner is any person who owns residential real estate or purchasing a new residential real estate.

A commercial IRESE property owner is any person or company who is a U.S. based, with a bank account, and a Business Employer Identification Number (EIN) or Social Security Number (SSN) for Sole Proprietors which owns commercial real estate or purchasing a new commercial real estate.

In case of Mortgage Financing, after passing IRESE's identity verification and anti-fraud checks, property owner can request secured loans from $25,000 to $1,000,000,000 at rates they select. All loans are originated by registered Brokers.

In case of Home Equity Protection Plan, after passing IRESE's identity verification and anti-fraud checks, property owner can purchase Home Equity Protection Plan. All Home Equity Protection Plan are originated by registered Brokers.

In case of Future Equity Agreement, after passing IRESE's identity verification and anti-fraud checks, property owner can enter into Future Equity Agreement. All Future Equity Agreement options are originated by registered Brokers.

What kinds of loans are available on IRESE through Mortgage Financing?

Property Owners can request 1 to 30 year, secured, fully amortized or interest only loans up to $1,000,000,000. Property Owners can repay the full amount of the loan at any time; there are no early payment penalties.

What is the collateral for Mortgage Financing?

There is collateral on all Mortgage Financing, which are secured notes by the real estate property. In this way, a Mortgage Financing from IRESE is a lot like a mortgage loan from a bank.

How are interest rates and payments calculated on Mortgage Financing?

Interest rates are based on the rate selected by the property owner which is then matched (and possibly bid down) by participating investors.

Payments are due once a month, based on a repayment schedule of the note selected over a period selected. By the time the loan term ends, the loan has been completely repaid unless it is an interest only loan. Try Mortgage Financing calculator to see the monthly payment and fees associated with a IRESE loan.

What happens if a property owner misses a payment?

Property owners who miss payments face the same consequences that they would if they missed a payment on a bank loan or credit card: their late payment is reported to credit reporting agencies, and their late loan is assigned to a collection agency. Property owner also incur late fees for missed payments, which are collected by IRESE and passed onto the investors for that specific note.

What happens if a property owner repays their Mortgage Financing early?

Property owners can make extra note payments or repay the note entirely at any time without penalty.

Can IRESE help property owners build credit? Will delinquency be reported?

Yes. Because IRESE reports all payment activity to credit reporting agencies, using IRESE is an excellent way for new property owners to establish or rebuild their credit score. In addition, delinquencies are also reported to credit reporting agencies, so bad performance will affect a property owner's credit score negatively.

Does Mortgage Financing through IRESE affect a property owner's credit score?

No. Mortgage Financing is not counted as a loan inquiry on the property owner's credit report and will not lower his or her credit score. A loan inquiry is only created when a property owner's Mortgage Financing is fully originated.

What kinds of options are available on IRESE through Home Equity Protection Plan?

Property Owners can request 1 to 30 year term options. Learn more how property owner can insure property value with Home Equity Protection Plan.

What kinds of options are available on IRESE through Future Equity Agreement?

Property Owners can request 1 to 30 year term options. Learn more how property owner can get debt free cash with Future Equity Agreement.

How quickly will a property owner receive money once Future Equity Agreement is financed?

Property owners typically receive their money within 10 to 20 business days of the end of a successful financing of Future Equity Agreement.

Will investors know property owners' identity?

No. Everything on IRESE is done anonymously, and there is never a need for investor and property owner to contact each other. Property owners communicate only with brokers. If an investor and a Broker do communicate through the IRESE web site, it is entirely up to each person to choose how much information they wish to share with the other.

Who can broker on IRESE?

An IRESE Broker is any company who is a U.S. based with a bank account and Business Employer Identification Number (EIN) or Social Security Number (SSN) for Sole Proprietors.

IRESE Broker is one the following types of companies: a mortgage banker or a mortgage broker, real estate agent or real estate broker, a stock broker or a financial advisor.

After passing IRESE's identity verification and anti-fraud checks, Brokers facilitate transactions at IRESE market. Brokers are required applicable state and federal licensing in order to originate Mortgage Financing, Home Equity Protection Plan and Future Equity Agreement.

Learn more about IRESE Brokers.

Who can invest money on IRESE?

An institutional IRESE investor is any company with U.S. based bank account and Business Employer Identification Number (EIN) or Social Security Number (SSN) for Sole Proprietors.

A private IRESE investor is any person with U.S. bank account and a Social Security number and "accredited investor".

After passing IRESE's identity verification and anti-fraud checks, investors purchase and sell Real Estate Notes and Real Estate Options.

For Real Estate Notes investors often earning a much better interest rate than putting their funds in a money-market account or CD. Learn about becoming a Real Estate Notes Investor.

For Real Estate Options investors often earning a much better return than putting their funds in stocks. Learn about becoming a Real Estate Options Investor.

How much money can someone invest?

Because IRESE allows investors to bid on all or parts of Real Estate Notes auctions, investors can fund as little as $100 and as much as entire amount of the auction on any particular security.

Because IRESE allows investors to bid on all or parts of Real Estate Options auctions, investors can fund as little as one share of an option and as much as all shares offered on any particular security.

How should investor evaluate Real Estate Notes auctions?

IRESE allows investors to select auctions based on their own criteria. Investors can evaluate offers by a property owner's credit grade, debt to income ratio, loan to value ration, and many other factors. Learn about finding Real Estate Notes auctions.

For example, an investor may want to invest money specifically into securities in San Diego, California. Alternately, an investor may create a portfolio plan to fund any security with specific credit criteria. Learn about placing bids on Real Estate Notes auctions.

If I make a Real Estate Notes investment through IRESE, what guarantees do I have that the note will get repaid?

Real Estate Notes are secured by mortgages on a specific real esate properties. There are no guarantees that Real Estate Notes will be repaid. In case of a default, IRESE will initiate collection. We try to give investors as much information as possible about the credit worthiness (or "credit grade") of the property owners, their debt burden (known as the "debt to income ratio"), their leverage (known as "load to value rario") and the expected default rate of a property owner with their credit grade, which is based on historical data from Kroll (www.kroll.com).

The way to ensure a good return is to diversify your bidding—use portfolio plans to place bids on many offers, and spread your risk across many Real Estate Notes. Even if one of your Real Estate Note defaults, the return from your other Real Estate Notes can make up for the loss. Learn about diversifying your bidding with portfolio plans.

How should investor spread their risk?

Because IRESE allows investors to bid small amounts on all or part of an offer, it is easy for investors to create well-diversified portfolios. Using IRESE's portfolio plans feature, investors can efficiently diversify their portfolio by automatically bidding on offers that reflect their pre-defined criteria.

For example, an investor can bid as little as $100 on any Real Estate Note offer. To diversify their portfolio, an investor with $100,000 to deploy might want to spread a large number of small bids among several Real Estate Note. Learn about diversifying your investment with portfolio plans.

What happens if a property owner does not repay their Real Estate Notes?

Property owners who miss Real Estate Note payments on IRESE face the same consequences as they would if they miss a payment with any form of bank credit including the reporting of late payments to the credit bureaus. Property owners also incur late fees, which are collected by IRESE and passed onto the investors.

When a property owner's payment is late, IRESE's broker that originated the Real Estate Note communicates directly with the property owner to encourage repayment. After 15 days, IRESE notifies the property owner's broker of the late payment. After 30 days, IRESE engages a nationally-licensed collection agency, giving property owners 90 days to bring the account to current. At more than 120 days past due, the property which was used to secure Real Estate Note is foreclosed. At that point, the property owner's credit report is negatively impacted with a default and they are banned from financing on IRESE ever again. Learn about what happens to property owners who are late with Real Estate Notes payments.

Can an investor collect on late payments itself?

Under no circumstances should an investor attempt collection on a late payment. Compliance with all state and federal laws while attempting to collect a delinquent loan is not trivial. When necessary, IRESE ensures all collection activity is performed by licensed and professional collection agencies. Investors who undertake debt collection (even if they are a debt collector by trade) are in violation of IRESE legal agreements and will undermine the collection agency's ability to do their job. Moreover, in doing so you run the real risk of creating a legal liability for yourself.

How should investor evaluate Real Estate Options offers?

IRESE allows investors to select offers based on their own criteria. Investors can evaluate offers by a property value, volatility, expected value changes, and many other factors. Learn about finding Real Estate Options auctions.

For example, an investor may want to invest money specifically into Real Estate Options offers in New York City. Alternately, an investor may create a portfolio plan to fund any Real Estate Options offers with specific volatility. Learn about placing bids on Real Estate Options auctions.

If I make a Real Estate Call Option investment through IRESE, what guarantees do I have that I receive the payoff?

IRESE guarantees delivery of a payoff on any Real Estate Option contract at the exchange. To provide the guarantee, IRESE implemented a number of safeguards and maintains an adequate cash reserve for the expected payoff and collects any payoffs that are owed from contract parties.

Will property owners know their investors' identity?

No. Everything on IRESE is done anonymously, and there is never a need for investor and property owner to contact each other. Investors may choose communicated with a broker. If an investor and a broker do communicate through the IRESE web site, it is entirely up to each person to choose how much information they wish to share with the other.

Are investors' deposits insured?

When preparing to post a bid, an investor transfers funds electronically, in an amount at least sufficient to cover the bid, into a funding account maintained by IRESE at an FDIC-insured depository institution, for the benefit of investors. Amounts in the funding account are insured by the Federal Deposit Insurance Corporation, or FDIC, for the benefit of individual investors on a pass-through basis (i.e., up to $100,000 per individual or company).

Do investors earn interest on deposits?

Investors do not currently earn interest on deposits to their IRESE account. Because of rules associated with pooled accounts (such as the ones that we use to hold your money), we are not allowed to earn interest on those accounts. However, IRESE is actively looking into ways that we can allow for interest to be earned on amounts deposited.

IRESE enables investors to transfer money to IRESE as needed to bid on offers or buy existing Real Estate Notes or Real Estate Options. How much cash you keep in your IRESE account will depend on how frequently, and in what amounts, you want to bid and trade.

Additionally, using portfolio plans and API bidding tools can significantly improve the pace at which you acquire Real Estate Notes or Real Estate Options and will allow you to move more money faster. Because portfolio plans are automated, they can minimize the amount of time your money sits idle.

What is identity verification?

For the safety and security of the marketplace, it is important that IRESE makes every effort to ensure that all companies and individuals participating in the marketplace are:

1) a real person or a company, and
2) the same person or the same company they say they are.

To this end, IRESE takes extra care in verifying the identity of all Brokers, Property Owners, Investors and Market Makers.

What will it take to get verified?

For Property Owner

When listing is created for a property owner, property owner identity will be verified against data from credit reporting agencies and other identity and anti-fraud verification databases. Property owner will be required to provide name, date of birth, Social Security number, address and telephone number. Based upon this and other data, IRESE will verify property owner identity.

For Broker

When broker opens account as a broker - an individual broker or a company, identity will be verified against data from credit reporting agencies and other identity and anti-fraud verification databases. Individual Broker will be required to provide name, date of birth, Social Security number, address and telephone number. Company will be required to provide company name, Business Employer Identification Number (EIN), main contact social security number, address and telephone number. Based upon this and other data, IRESE will verify broker identity.

For Investor

When investor opens account as an Investor - an individual investor or a company, identity will be verified against data from credit reporting agencies and other identity and anti-fraud verification databases. Individual Investor will be required to provide name, date of birth, Social Security number, address and telephone number. Company will be required to provide company name, Business Employer Identification Number (EIN), main contact social security number, address and telephone number. Based upon this and other data, IRESE will verify investor identity.

What if I don't pass identity verification?

There are some cases in which real, legitimate people and companies don't pass the IRESE identity verification process. If this happens to you, there is a possibility that our information about your identity is erroneous, or you have a fraud alert on your credit report, in which case we will contact you and may ask for faxed proof of identity before allowing you to continue as a property owner, investor or broker.

What happens in case of identity theft?

IRESE has a 100% Identity Theft Guarantee in place to protect property owners, investors and brokers from identity thieves. If an investor is the victim of a defaulted Real Estate Note from a person who has committed identity theft, IRESE will repurchase the Real Estate Note for the unpaid principal amount, and will work with law enforcement authorities to track down and prosecute persons who have committed identity theft.

How is IRESE regulated?

Lending and loan servicing activities on the IRESE are subject to state and federal regulation.

Mortgage Financing, Home Equity Protection Plan, Future Equity Agreement originated through the IRESE are made by registered Brorkers, which are regulated by the state and federal regulation.

IRESE and the Mortgage Financing, Home Equity Protection Plan, Future Equity Agreement originated through the IRESE must comply with applicable state and federal lending laws such as the federal Consumer Credit Protection Act, including, as applicable, the Truth-in-Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act and Electronic Fund Transfer Act, as well as the federal Electronic Signatures in Global and National Commerce Act (ESIGN) and other federal and state laws governing privacy and data security and prohibiting unfair or deceptive business practices.

Real Estate Notes and Real Estate Options Offers originated and traded through the IRESE and subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC) www.cftc.org.

IRESE, Inc., a Delaware corporation, is subject to examination, supervision, and potential regulatory investigations and enforcement actions by state agencies that regulate consumer credit, trade and commerce, and federal agencies, such as the Federal Reserve Board and the Federal Trade Commission, that administer the federal consumer protection laws, trade and commerce.

How does IRESE make money?

IRESE charges a 0-1% Mortgage Financing origination fee each mortgage funded. The amount of the fee depends on the property owner's credit grade, and are taken out of proceeds of the Mortgage Financing.

IRESE charges investors an annual Mortgage Financing servicing fee of 1% which accrues monthly along with the Mortgage Financing interest. Learn more about Real Estate Notes fees.

IRESE charges Real Estate Option payoff fee of 1% at the time the contract expires or terminated and funds if any are dispurse. Learn more about Real Estate Options fees.

IRESE charges a trading fee every time Real Estate Notes or Real Estate Options trade is completed per share between 1 cent and 20 cents depending on a monthly volume.

What if IRESE were to go out of business?

First, no new Real Estate Notes or Real Estate Options offers would be created. All investor funds not actively associated with an investment would be returned to the individual investors immediately, and all existing Real Estate Notes and Real Estate Options will be serviced to completion by a third party servicing agent.

Property owners are still legally obligated to make payments on their Mortgage Financing or Future Equity Agreement share. IRESE's existence (or lack thereof) does not change that obligation, and failure to meet those obligations would result in the same consequences for the property owner.