IRESE 'International Real Estate Securities Exchange'
Join real estate finance revolution.
The US and global real estate market is in turmoil with declining property values, rising mortgage foreclosures and a chaotic credit market.
IRESE operates a patent pending private online marketplace for real estate financing.
Property Owners can access innovative real estate finance products through our national network of brokers.
Mortgage bankers and brokers can:
Investors profit from fixed income returns, real estate
price volatility and portfolio diversification with
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 the 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 finance market encounter a number of challenges:
IRESE Solution
Since going live in October 2008, IRESE works with mortgage bankers and brokers to provide liquidity to mortgages in residential real estate properties with Mortgage Financing,
Home Equity Protection Plan, and Future Equity Agreement to property owners.
To enable these products, IRESE facilitates original issue and trading of financial instruments called Real Estate Option and
Real Estate Note.
IRESE Exchange
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IRESE works with licensed brokers to facilitate the original issue of
Mortgage Financing, Home Equity Protection Plan, and Future Equity Agreement.
Brokers perform selling and marketing, and all the due diligence to complete the origination.
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IRESE provides the marketplace where the above products are turned into Real Estate Notes and Real Estate Options.
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Investors are able to purchase and trade Real Estate Notes and Real Estate Options. IRESE resolves any disputes, enforces established contracts and covenants, and facilitates exchange of interests in underlying securities.
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.
Real Estate Option
Real Estate Option is a contact based on a time horizon and an expected property value.
Real Estate Options are similar to financial options contracts and priced based on an individual real estate property.
IRESE provides mortgage bankers and brokers with financial tools that allow them to sell Home Equity Protection Plan via Real Estate Put Option
and Future Equity Agreement via Real Estate Call Option to property owners.
Investors benefit from real estate price volatility, leverage on their investments and investment portfolio diversification.
Benefits
Learn How IRESE works in more details.
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