San Diego, CA, January 24, 2009 --(PR.com
)-- International Real Estate Securities Exchange, Inc. (IRESE) is a patent pending real estate securities and derivatives exchange. Mortgage bankers can securitize real estate loans and insure mortgaged property value decline. Accredited investors can invest in residential and commercial real estate securities and derivatives to benefit from real estate price changes, portfolio diversification and fixed income return.
This first real estate only exchange enables investors to buy and sell a partial interest in individual residential or commercial real estate mortgages. At the same time, real estate property owners are able to insure against property price decline or get debt free cash.
Michael Milken states, "Real Estate can become as easily tradable and as liquid as a stock or bond. The effect of such a thing on the investment world would be nothing short of revolutionary. Indeed, a developer who wanted to build a series of apartment buildings could issue securities to investors - just as companies issue stock in IPOs. And the owners of these securities could trade them whenever they wanted. There is a clear need for a financial technology in this area."
The real estate market is in turmoil - property prices are declining, mortgage foreclosures are on the rise and credit market is in a state of chaos. IRESE provides accredited and institutional investors with the standardized, streamlined investment process that provides complete discretion over purchase and sells decisions, short-term liquidity, real-time pricing, tax efficiency and global diversification through Real Estate Note and Real Estate Contract products.
“Real estate investments are one of the largest asset classes in the United States, along with stocks and bonds. However, investments in real estate are not very liquid, as compared to stocks or bonds. For example, homeowners who hold a large percentage of their wealth in real estate, mostly in their homes, are not diversified and are sensitive to price declines of their homes” states Harry Markowitz, Nobel Prize winner in Economics in 1990 for his seminal theory of portfolio allocation under uncertainty. “IRESE helps property owners insure their properties against the risk of price declines and raise debt-free cash. Investors will have the opportunity to hold a diversified portfolio of real estate investments when they project an opportunity for this asset class”, adds Mr. Markowitz.
“To date, there is no strait forward way to insure against property price declines and leverage property equity debt-free. But one can construct a position, which allows property owners and investors to benefit from changes in the value of the underlying asset, a real estate property. At the same time, the risk of price decline can be transferred from the property owner to investors for a price. IRESE developed a system by which one can apply options contracts to individual real estate properties”, states Rossen Valkanov, an associate professor of finance in the Rady School of Management, UCSD.
Vlad Krutik, CEO of International Real Estate Securities Exchange (IRESE), states "With the current economic climate, we all recognize the need for innovation, liquidity and diversification. The bottom line is that there are tremendous financial advantages to mortgage bankers and investors that participate in real estate securities exchange through a standardized buy/sell environment which is regulated by federal and state agencies. In addition to real estate options contracts, IRESE offers an alternative way of mortgage loan securitization. It allows investors to pick and choose a risk profile based on individual loan criteria and construct an optimal investment portfolio. Ongoing liquidity is provided by investor trading on the exchange. Investors will benefit from returns associated with investing in real estate and will be able to diversify their investment portfolios.”
About International Real Estate Securities Exchange, Inc. (IRESE)
IRESE, Inc., (www.irese.com) is the first Internet-based, government regulated market where mortgage bankers can securitize their loan, property owners to insure against price decline, and investors benefit from real estate price movements and fixed rate of return from diversified fixed income investments.
IRESE's site www.irese.com enables members to trade small, inexpensive, easy-to-understand Real Estate Notes and Real Estate Options contracts in international real estate markets.
IRESE is a secure, fully-transparent marketplace, subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).
For more information about Real Estate Securities Exchange visit http://www.irese.com
References: Michael Milken, Fortune Magazine.