Buyers' FAQ

  • What real estate assets are available for purchase on FRE.com?

    The Freedom Realty Exchange online auction platform is designed to effectively sell any type of real estate asset, including:

    • Residential property (single-family residences, condominiums, multi-family)
    • Commercial, retail and industrial property
    • Raw land
    • Bulk REOs and mortgage notes collateralized by both residential and commercial property
    • Non-traded public REIT shares

  • How do I register?

    Click here to sign up for your FREE account today!

    Simply click the above link and complete our online registration form. Registration is fast and easy and lets you:

    • Save searches and be notified by email when auctions matching your search criteria become available.
    • Create a watch list of auctions that you would like to track.
    • Submit a bid and monitor your bid deposit account.

  • How do I search for specific assets/auctions?

    Visit the Auction page and utilize the advanced search filters.

  • Do I need to provide personal information to view general auction information?

    No, all visitors to FRE.com can view general auction information without signing up for a user account or providing personal information. However, in order to view detailed information, due diligence materials, track assets, save specific searches and receive auction updates, you must register a user account on FRE.com. Registration is free, it only takes minutes and there is no obligation to bid.

  • Once I register, who will access my personal information?

    All user information is treated with the utmost confidentiality and respect for the privacy of the user. At no time will any user information be sold, rented or otherwise disclosed to third parties except to those specifically involved in your purchase transaction. By downloading auction-specific documents, or if you place a bid, the seller and the seller's broker may have access to your user information. Please see the FRE.com privacy policy for further details.

  • What are the benefits of an online auction?

    The buying experience on FRE.com is convenient, transparent, fair, and secure.

    An online auction on FRE.com allows buyers to easily participate with just Internet access. All important property-specific and auction information, documents, disclosures and terms and conditions of sale are available for instant download and review. Bids are also submitted online.

    Unlike traditional "outcry" auctions, the online auction process on FRE.com is fair to all bidders. Additionally, our unique bid extension feature, Last Call®, eliminates the last-second pressure that oftentimes comes with online bidding.

  • Where will the auction be held?

    There are no on-site, live auction events. All auctions are conducted over the Internet on our website www.FRE.com.

  • What is a Sealed Bid auction?

    In a Sealed Bid auction, a bidder may place a bid prior to the bid deadline, but submitted bids remain unpublished and are not displayed on the website.

  • What is an open bidding auction?

    An open bidding auction displays all valid bids under the Bid History section on the auction profile page. Bids can be submitted any time prior to the bid deadline. When a new bid is received, all registered users on that specific auction receive an email notifying them of the new high bid.

  • What is a Last Call® auction?

    An auction in Last Call is in the final stages of bidding. Last Call is our bid extension feature that if invoked by the seller, extends the bid deadline by a specific time increment if bids are received within a set time frame. If the auction includes a portfolio of properties, then the bid deadline could extend for all of the properties, regardless of bids being placed on an individual property. Last Call prevents a common online auction practice known as "sniping" where in the final minutes (or even seconds) of an auction, a bidder places a higher bid and the auction ends. All bidders can place bids during Last Call if their bid deposit has been received. Further information about Last Call can be found in the Terms & Conditions of Sale located under the Documents section on the auction profile page.

  • How do I prepare for a bid deadline?

    Prior to the bid deadline, you should conduct your due diligence by reviewing all available property-specific andauction information located under the Documents section on the auction profile page. Additionally, all auctions require you to submit a bid deposit form and funds in order to participate in the auction.

    To submit a bid deposit, you must first complete a bid deposit form indicating your deposit amount and payment method. Bid deposit forms are available directly on auction profile pages, or can be accessed in the My Account section of the website when signed in, or by clicking here.

  • What is a bid deposit?

    A bid deposit is a monetary deposit required in order to place bids in an auction. Bid deposit amounts are specific to each auction, and payment methods are accepted in the following ways and are also specific to each auction: 1) credit card (Visa, MasterCard, American Express or Discover), 2) wire transfer, 3) a personal or company check, or 4) international deposit.

    If you select to place a bid deposit by credit card, your credit card account will be authorized for the amount specified from the date of authorization through the duration of the auction. This authorization is specific to this auction and cannot be applied to other auctions.

    If you remit your bid deposit by wire transfer or check, monies shall be placed in Republic Escrow Corporation's escrow agent's non-interest bearing trust account at Wells Fargo Bank. Monies submitted to escrow may be used for any auction bid deposit, as long as there are sufficient funds to cover the minimum deposit amount.

  • Is my bid deposit refundable?

    Yes. If an auction is no longer in a sealed bid format and you are not the highest bidder, your bid deposit may be refunded.

    If your bid deposit is in the form of a credit card hold and you are not the highest bidder at the end of the auction, then the hold will automatically be released.

    If your bid deposit is submitted by check or wire transfer to escrow and you are not the highest bidder at the end of the auction, then your bid deposit will remain in your escrow account, and will be available for bidding in other auctions. If you would like your bid deposit returned to you, submit a Return of Deposit Verification (RDV) form to the escrow agent at Republic Escrow. As stated in the bid deposit terms of agreement and in the Terms and Conditions of Sale, your bid deposit can be returned to you immediately by wire transfer (fee applicable), or within 21 business days by check. Additionally, a fifty dollar ($50) escrow administrative fee will be deducted from the refund amount.

    To obtain a Return Deposit Verification (RDV) form, contact an Auction Support team member.

  • Can I bid on multiple auctions at once?

    Yes. You may bid on multiple auctions at once as long as you have submitted sufficient bid deposits to cover the required bid deposit amount for each asset on which you place a bid.

  • Will the Seller accept an offer before the Bid Deadline?

    While the seller reserves the right to change an asset's Terms and Conditions of Sale or to cancel the auction entirely, no asset will be sold prior to its bid deadline.

  • Once I place a bid, can I change or cancel it?

    No, you are strongly advised not to place a bid in any auction unless you intend to honor it. Placing a bid on an asset is considered a legal offer to purchase and therefore, both buyer and seller have certain legal rights and obligations. Once an auction has ended and you are the highest bidder, your bid stands valid for 10 days as stated in the Terms & Conditions of Sale. Cancelling your bid will result in forfeiture of your bid deposit. Please consult your legal counsel for any rights and obligations that you may incur as the buyer.

  • How am I notified if I am outbid?

    If the property is in a sealed bid format, you will not know if someone has submitted a higher bid than yours because no bids are revealed or published on the website. However, if the property is in Last Call or open bidding format, you will receive email confirmation each time a bid is placed in the auction and all bidding activity is published on the auction profile page.

  • What happens if I am the Highest Bidder at the end of the auction?

    An auction manager or closing coordinator will contact you directly to confirm acceptance of your bid by the seller. At that time, you will be instructed to wire an earnest money deposit within two business days and the purchase and sale agreement will be sent to you for execution. Sale transactions are specific to each auction and asset type, and detailed information is available in the Documents section of each auction profile.

  • What is Sealed Bidding?

    Sealed Bidding means that bids submitted in the auction are not published on our website. Buyers can submit sealed bids any time before the bid deadline, which is displayed on the auction profile page. For a sealed bid to be considered valid, it must be at or above the published minimum bid and the required bid deposit must have been received.

  • What is Open Bidding?

    All valid bids placed in an open bidding or Last Call auction are displayed under the Bid History section of the auction profile page. Email notifications are sent to all registered users on that specific auction when bids are placed. Buyers may place bids before the bid deadline published on the auction profile page.

  • Can I place a bid during Last Call®?

    Absolutely. You can place a bid as long as the required bid deposit has been received.

  • What happens if I am the Highest Bidder at the end of the auction?

    An auction manager or closing coordinator will contact you directly to confirm acceptance of your bid by the seller. At that time, you will be instructed to wire an earnest money deposit within two business days and the purchase and sale agreement will be sent to you for execution. Sale transactions are specific to each auction and asset type. Detailed information is also available in the Documents section of each auction profile.

  • Is financing offered?

    Some of our auctions offer financing while others do not. Please refer to the terms and conditions of sale for each specific auction for additional information.

  • What is an Internet Marketing Fee?

    The Internet Marketing Fee (IMF) is the auction fee paid by the buyer at the close of a sale. Please refer to the Terms and Conditions of Sale for each specific auction for additional information.

  • Who handles the sale?

    Property sales are conducted by licensed real estate professionals who represent the seller and are licensed in the state where the property is located.

    Non-traded public REIT share transfers are managed by JRL Capital Corporation, a member FINRA.

    Mortgage note sales are conducted between the buyer and the seller with Republic Escrow Corporation and LFC Marketing Services, Inc. acting as liaison.

  • Can I visit and inspect the property?

    Yes, if the asset is real property, the open house schedule will be on the auction profile page or a tour can be set up by contacting the auction manager. If the asset is a mortgage note, you may not disturb the occupants or inspect the property.

  • How can I be assured that the property is in sound condition?

    You are strongly advised to perform your due diligence by downloading and thoroughly reviewing all of the documents, disclosures, maps, images and other property-specific information available on the auction profile page. You are also encouraged to personally conduct a thorough physical inspection of the property if possible. If you would like to employ a professional inspector at your own expense to inspect the property, please schedule the appointment with the auction manager. Remember that all transactions are non-contingent; the purpose of the property inspection is to assist you with determining your bid. You may also want to source and review all available third-party documents, information and government records.

  • Will I be guaranteed clear title on any property that I purchase on FRE.com?

    Unless otherwise stipulated in the Terms and Conditions of Sale on a specific property, title to property auctioned on FRE.com is conveyed to the buyer free and clear of any and all liens and/or encumbrances, including taxes, assessments and lawsuits. Upon closing, a title insurance company will issue a title insurance policy to insure that the property is free and clear of any and all liens and/or encumbrances. If the seller is not able to deliver clear title to the property, you will be refunded in full any and all fees and/or deposits that you have tendered. You will also be under no further obligation to purchase the property.

  • Can I make an offer directly to the Property Representative to purchase a property?

    No, the only way to purchase a property is to submit a bid and be declared the winning bidder at the end of the auction. Please see the Terms and Conditions of Sale on the auction profile page for further details.

  • Once I am declared the Highest Bidder, when can I take possession of the property?

    The purchase and sale agreement will stipulate the escrow/closing date and upon notification that the deed of conveyance has been recorded, you will be provided access to the property.

  • What is a REIT?

    REITs, or Real Estate Investment Trusts, were created by Congress in 1960 to allow average investors the opportunity to invest in large-scale, income-producing real estate. To qualify as a REIT and enjoy preferential tax treatment from the IRS, a REIT must annually distribute at least 90 percent of its taxable income in dividends to its shareholders. In other words, REITs “pass through” most of their income directly to shareholders and in turn, pay no taxes on this income at the REIT level. In the same way shareholders benefit by owning stocks of other corporations, shareholders of REITs earn a pro-rata share of the income produced through ownership of real estate.

    A REIT is a company that owns and operates income-producing real estate such as office buildings, apartments, shopping centers, hotels and warehouses. Many of these REITs are public companies and traded on national stock exchanges (NYSE, AMEX, NASDAQ), while others are not publicly listed and are referred to as “non-traded” public REITs.

  • What is Original Share Price?

    Original share price is the original issuance price of non-traded public REIT shares.

  • What is Book Value?

    Book value is the most recently published total shareholders' equity divided by shares outstanding.

  • What are Past Auctions?

    Past auctions show the price per share and total bid amount paid for past non-traded public REIT auctions conducted through FRE.com.

  • What is Net Asset Value (NAV)?

    Many non-traded public REIT managers publish an estimated net asset value (“NAV”) per share. To make this calculation, REIT managers rely in part on an estimate of the fair market value of the REIT’s real estate investments, then adjust to give effect to other REIT assets and liabilities, including mortgages. The resultant valuation is then divided by the number of shares outstanding to arrive at a NAV per share.

  • What is Historic Dividend?

    Historic dividend is the recent amount paid by a non-traded public REIT to its shareholders. Dividends are typically distributed quarterly and are subject to adjustment at each distribution period.

  • What are Funds From Operation (FFO)?

    FFO is a financial calculation that is widely recognized in the REIT industry as a measure of operating performance, or cash flow. FFO is defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income (loss) computed in accordance with GAAP (generally accepted accounting principles), excluding gains or losses from sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO was developed by NAREIT as a measure of performance to recognize that income-producing real estate has historically not depreciated consistent with the basis as determined under GAAP.

  • What is REITbid?

    REITbid was created to match buyers and sellers of non-traded public REIT shares in a format that is simple and effective. REITbid utilizes an advanced auction platform powered by FRE.com. This platform allows buyers and sellers the convenience and transparency of online bidding, and access to information on non-traded REITs to assist in an informed decision making process.

    REITbid and FRE.com partnered in 2011 to create an efficient auction marketplace for buyers and sellers of non-traded public REIT shares. REITbid’s non-traded public REIT auctions take place on FRE.com and are managed by JRL Capital Corporation, a member of FINRA.

  • What if there are no auctions for the non-traded public REIT I am interested in buying?

    Inventory on REITbid and FRE.com changes daily. If you do not see auctions for the non-traded public REIT you would like to purchase, please select the Receive REIT Updates icon (see below) located on every REIT Profile, and you will be notified when shares become available for that particular REIT.

    Receive REIT Updates

    Additionally, if you do not see a REIT Profile for a non-traded public REIT you are interested in purchasing, please contact anAuction Specialist.

  • Do I have to pay any fees for purchasing shares?

    Yes. In addition to the total bid amount, which is the winning bid amount multiplied by total number of shares in the auction, the buyer is responsible for additional fees outlined in the Terms and Conditions of Sale. Terms and Conditions are available in the Documents section on each auction page.

  • Can I bid on a portion of shares in a REIT auction?

    No. Each REIT share auction is for all shares listed under the Number of Shares.

  • Can I bid on multiple auctions at one time?

    Yes, but you are still responsible for completing all transactions for every auction where you are the winning bidder.

  • How will I know if someone else placed a higher bid than me? How can I monitor bidding activity?

    If you are a bidder in an auction, you will be notified via email each time a new bid is placed. If you are not a bidder but would like to monitor bidding activity, you can add the auction to your Watch List and you will be notified via email each time a bid is placed.

  • What happens after I become the winning bidder?

    A REITbid representative will contact you via email informing you that you are the winning bidder. At that time, transfer documents will be routed to you for signature along with instructions on where to send documentation and wire purchase funds. Once fully executed documents and funds are received, transfer documents are forwarded to the REIT sponsor to process the transfer. Additional details are outlined in the Terms and Conditions located in the Documents section of each auction.

  • How do I pay for my REIT shares if I am the winning bidder?

    Shares are purchased via wire transfer or check and are sent to the clearing agent processing your transaction. Please refer to the Terms and Conditions in the Documents section on each auction page for additional details.

Freedom Realty Exchange® is owned and managed by LFC Internet Marketing, Inc.

Freedom Realty Exchange, FRE.com and FRE are registered trademarks.

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