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Real Estate Note fees

Real Estate Note Servicing Fees

1.00 % Annual Real Estate Note servicing fee

The annual servicing fee is accrued monthly, and is based on the current outstanding note principal. This fee is accrued the same way that regular interest is accrued on the loan.

For example, on a $100,000 loan with 1,000 share, each Real Estate Note at $100 face value at 6% interest, the servicing fee would be $19.31 per share for the full 30 year length. Assuming $100 note share is hold to maturity the total interest in the amount of $115.84 per note, servicing fee of $19.31 comprises only 17% of total income. Because the servicing fee is based on the monthly principal balance, it will change on a monthly basis, and the servicing fee for a loan will vary based on the interest rate and the length of the loan (if the loan it paid back in less than 30 years).

Foreclosure agency recovery fee

In the event that one of the Real Estate Note becomes more than 120 days late, IRESE will assign a professional Foreclosure agency to attempt to collect the overdue amount. Each Foreclosure agency has its own fee structure, but will only collect a fee for their services if funds are recovered.

Real Estate Notes Trading Fees

The same trading fee applies when buying or selling shares. Trading fee is charged on a sliding scale. More you trade, less you pay.

Here is a current fee schedule as of September 1, 2010:

Tiers Shares per Month Rate
First 10,000 20 cents
Second 100,000 18 cents
Third 500,000 15 cents
Fourth 1,000,000 10 cents
Fifth 2,000,000 3 cents
Sixth 5,000,000 1 cent

For example, if you sell your entire position of 100 shares of the specific Real Estate Notes, if you trading volume is in the third tier for the current month, you pay 15 cents per share, or $15 for the entire trade.

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