SYSTEM AND METHOD FOR CONDUCTING A REAL ESTATE AUCTION IN A NETWORK

摘要

Embodiments described herein include a network-based exchange for conducting transactions involving fractional interests in real estate assets. The platform acts as both a market where participants can buy and sell fractional interests in real estate properties and a funding mechanism where entrepreneurial real estate promoters can raise capital through a private market. The platform enables a large group of underserved accredited investors to invest in commercial real estate. The system can receive bids over the network for purchase of one or more of the fractional interests from buyers and determine highest bidders for each fractional interest. Successful buyers can then be identified for each fractional interest when the highest bidder bids an amount that meets or exceeds a reserve price set by the seller. Ownership of a fractional interest in the real estate asset includes the right to a proportional amount of income generated by the fractional interest.

主权项

1. A method of conducting a real estate auction in a network, the method comprising:
receiving an offer for sale of a prescribed number of fractional interests in a real estate asset at a data processing server configured to process real estate transactions; receiving offers for purchase of one or more of the fractional interests at the data processing server; determining whether oversubscription has occurred, wherein oversubscription occurs when offers for purchase of the fractional interests at or above a reserve price exceed the prescribed number of fractional interests being offered for sale; receiving bids for purchase of the fractional interests in the real estate asset when oversubscription has occurred; selling the fractional interests to successful bidders at a clearing price when oversubscription has occurred; and selling the fractional interests to successful bidders at the reserve price when oversubscription has not occurred.