WHAT DO i NEED TO KNOW ABOUT THE Commercial Auctions???

WHAT DO i NEED TO KNOW ABOUT THE Commercial Auctions???

Pre Auction

• What types of assets will be sold at auction?
  Our auctions focus on the disposition of commercial, multifamily and residential real Property. Additionally, "pools" of properties meaning a combination of multiple properties sold as one package may also be offered.
• Who owns the properties being offered at these auctions?
  Typically (but not always), the Property being offered is owned by lenders which originated or obtained the loans or may be offered for sale by a special servicer on behalf of the lender or the special servicer of a Commercial Mortgage Backed Security (CMBS) Trust.
• Are prospective bidders allowed to conduct site inspections on the Property prior to bidding on Notes?
  Yes, an inspection is allowed and specific times are either scheduled ahead of time or an appointment can be made with the listing broker. We encourage you to bring whatever professionals you deem necessary for such inspections, so that you may complete your due diligence. All transactions are "As Is, Where Is With All Faults and Limitations" so bid accordingly.

Online Auction Process

• How will the properties be auctioned?
  Properties will be sold through on-line auctions, which are referred to as "Events."
• What if I use a broker, agent, advisor, attorney and/or contractor (one or more, "Assisting Parties") to assist me in the due diligence and/or bidding process?
  Bidders will be solely responsible for any and all compensation which may be due Assisting Parties working on their behalf in connection with a real Property auctions and your subsequent purchase. In certain circumstances a Broker Co-Op may be available for certain assets. Please review each asset detail page to confirm whether a Broker Co-Op is being offered for that particular auction asset.
• How do I get started reviewing detailed information on properties?
  Certain information is available regarding the Property following your creation of a profile and your providing some basic user information. Prior to gaining access to the Documents tab (which is a secure data vault) for a particular Property, prospective bidders will be required to execute an electronic Confidentiality Agreement. In addition, each Property has a dedicated Broker who can answer specific Property. Please see the asset detail page for contact information.
• What is the Buyer's Premium?
  The Buyer's Premium is a five percent (5%) fee which is based on the Winning Bid Amount. This Buyer's Premium is then added to the Winning Bid Amount to calculate the Total Purchase Price. For example, if the Winning Bid Amount is $1,000,000, then the Buyer's Premium would be $50,000 (5% of $1,000,000). The Total Purchase Price is then calculated as the Winning Bid Amount plus the Buyer's Premium, or $1,000,000 + $50,000 = Total Purchase Price of $1,050,000. *A minimum Buyer's Premium may also apply for some assets. Please refer to the website asset detail page for specific information.
• Can I purchase more than one Property in an online auction event?
  Yes. There are no restrictions on the number of properties you can purchase or register to place bids on so long as you submit the required bidding deposit for each asset and provide sufficient proof of funds.
• What if I buy more than one Property, what is my Earnest Money Deposit requirement?
  If you buy more than one Property, you will be required to make a separate Earnest Money Deposit for each Property based upon the Total Purchase Price for each Property.
• Do you publish auction results?
  Specific auction results are not published or provided.
• What are the benefits of an auction?
  The benefits of the auction process are numerous. Achieving a price through competitive bidding is, oftentimes, the only method available to determine an asset's true current market value. The auction provides a marketplace where sellers and buyers can meet. The buyer is exposed to multiple offerings simultaneously thus enabling market comparisons to be made quickly and easily. Additionally, the buyer is able to set their own price based on the research and due diligence s/he completes.
• Who is qualified to bid?
  Each auction may involve different bidder qualifications depending on the value of the Property, size, Property type and other factors. Each bidder is responsible for determining his/her own suitability for an investment such commercial Property assets and it is highly recommended that a bidder consults with his/her respective legal, tax and investment counsel to insure he/she has the requisite financial resources, risk tolerance, sophistication and legal knowledge prior to bidding. We encourage you to speak with the Broker assigned to each Property of interest.
• Are the terms, conditions and process of each Property auction different?
  While the process of registering, placing bids, and the closing process for the purchase of real Property will be similar in each auction, the particular terms and conditions, the deposit requirements and certain Property specific information for each auction can be found on the asset detail page and in the secure data vault for each Property.

Registration Process

• Do I need to register to bid at the auction?
  Yes, registration is required. We recommend that you register at least forty-eight (48) hours prior to the beginning of the online auction in order to have sufficient time to complete all of the necessary steps regarding the Proof of Funds process. However you may register at any time prior to the expiration of the bidding period. The registration is easy and there is no obligation to bid. NOTICE – You must register separately for each auction asset that you want to bid on.
• How do I start the bidding process?
  When registering for a real Property auction event, prospective buyers will be prompted to complete the easy auction registration process. The process includes 4 easy steps:

  1. Creating a profile at www.Auction.com
  2. Registering for the auction event you wish to participate in and submission of a bidder deposit for EACH asset via a credit card authorization (your card will not be charged) or via a wire transfer or other certified funds through our designated third party escrow/closing agent. Deposit amounts will vary depending on the specific auction asset. .
  3. Submit proof of funds via a bank statement or a letter from your banking institution verifying your liquidity.
  4. If purchasing as an entity, you will need to submit your Articles of Incorporation or Organization or other applicable entity documents showing the legal existence of the entity, your ability to enter into a binding contract on behalf of the entity and a certificate of good standing.
• Is a deposit required in order to bid?
  Yes. A bidder deposit is required to bid. This deposit requirement may not be the same for each asset. This asset level bidder deposit will be refunded following the auction in the event you are not the winning bidder. The amount of the asset level bidder deposit will vary depending on several factors. Please check the registration page for details.
• Will I be required to demonstrate proof of funds to bid?
  Yes. To complete the registration process, all private investors (non-institutional investors) will need to provide the Auctioneer proof of available funds. Please be prepared to provide a recent bank or brokerage account statement which demonstrates that you have funds available (e.g. cash, stock, bonds, mutual funds) to purchase the auction asset. The statement must be less than 75 days old. Additional proof of available funds may be required during the auction if you bid more than the amount of the proof of funds already provided.
• Can I use credit card for the bidding deposit and/or the Earnest Money Deposit?
  A credit card authorization can be used for the asset level bidding deposit, however credit cards are not accepted for payment of the Earnest Money Deposit.
• I am trying to register for the auction…why won't it let me?
  If you experience any problems, please contact the customer service group by calling 888-770-7332
• Can I bid if I am not a US citizen?
  Yes, anyone can register to bid. The registration and bidding process are the same for all bidders.
• I registered for the website, but why can't I bid?
  You may have created your profile at www.Auction.com, but did not register to participate in an auction event or completed the Proof of Funds process. Please go to the "Online Bidding" tab, click on the auction event for which you'd like to participate and then click on the "Register Now" button. Remember, you must make a bidder deposit for EACH asset you intend to bid on. After placing your bidder deposit, please submit your Proof of Funds to CommercialPOF@Auction.com
• I registered, but it didn't ask for a bidder deposit, how do I put in my bidder deposit?
  Make sure you are registering for each asset you have an interest in. Please go to the "Online Bidding" tab, click on the auction for which you'd like to participate, select the asset you would like to purchase and click on the "register for this asset" button.
• I forgot my password, how do I get back in?
• Can I put my purchase in my Entity name?
  Yes, If you plan on purchasing any asset using a corporation or LLC (or any other legal entity other than your personal name), you should register under than entity. We will also need the following information on file:

  1. Articles of Incorporation, Articles of Organization or other applicable doucments evidencing the existence fo the legal entity
  2. Legal documents which evidence your ability to enter into a binding contract on behalf of this entity
  3. Certificate of good standing
• Can I assign my contract to another entity that I own if I win?
  Please check the individual purchase and sale agreement as each seller treats this differently. However, typically you will be allowed, one time, the right to assign the loan sale agreement to another entity providing the new entity has the same ownership structure as the original purchasing entity. Example: Purchasing entity has two members, each who own 50%. The new entity must have the same two partners and each much also own 50%. A third partner cannot be added and the percentage cannot change to 75%/25%. Please contact your Broker if you have further questions.

Bidding Process

• Can I bid on more than one Property?
  Yes. You determine your bidding limits, and as long as you have enough funds, you can bid on more than one Property. You must have also placed a bidder deposit on each asset you intend to bid on.
• Can I set a proxy bid?
  No, you must be available to make the bids yourself.
• When does the auction end?
  The first Property closes at the posted end time and the remaining properties (if any) will end in sequential order at various intervals. A Property will have extended bidding time added if a bid is placed in the final minutes of the auction as set forth in the terms and conditions.
• Do all the properties close at the same time?
  Properties are scheduled to end in sequence, approximately a few minutes apart on the date and time indicated on the bidder page. End times for some assets may be extended in added time increments due to aggressive last minute bidding by multiple parties.
• What does the term "reserve" mean?
  A "reserve" is an amount established by the seller which represents their minimum selling price. Reserve prices are not published and the starting bids do not represent the reserves.
• What happens to my bidder deposit if I'm not the winning bidder?
  All deposits will be refunded and credit card authorization holds released as soon as possible following the conclusion of the auction if you are not the winning bidder.

Winning Bidder Process & Closing

• How will I know if I am the winning bidder?
  If you are the highest bidder when the auction ends then you will receive a winning bidder confirmation by email shortly after the auction ends. The email will be followed up within 30 minutes by a phone call from one of our auction coordinators, who will discuss with you the remaining steps.
• What if I am not available to sign within 30 minutes?
  You must be available by telephone to complete the gatekeeping process and execute your purchase documentation within 30 minutes. Failure to do so will mean you are in default of the terms and conditions of the auction, your deposit will be considered liquidated damages and the auctioneer reserves the right to place the Property back into the auction.
• I received an email stating I am the highest bidder, but no one has contacted me. What do I need to do?
• I haven't received my Purchase and Sale Agreement, what do I do?
• What is the cost to purchase a Property?
  In addition to the standard and customary costs related to the closing of the transaction such as escrow/closing fees, title updates and reports, the winning bidder will pay a Buyer's Premium on the transaction's closing date in an amount equal to five percent (5%) of the Winning Bid Amount (the Buyer's Premium is added to the Winning Bid Amount to determine the Total Purchase Price paid by the Buyer). A minimum Buyer's Premium may apply.
• Is an earnest money deposit required by the winning bidder?
  Yes. A successful bidder will be required to deposit additional funds with the escrow/closing agent in an amount stated in the Purchase and Sale Agreement. Such funds must be posted within 24 hours of being declared the winning bidder. The winning bidder will be required to pay the Earnest Money Deposit by wire transfer within 24 hours following the conclusion of the online auction. You will be provided with a receipt by e-mail showing that the escrow/closing agent received your Earnest Money Deposit. There are no exceptions to this requirement.
• What if I change my mind? Can I cancel the transaction after the fact?
  Once the online auction is final, you have agreed to purchase the Property, including those sales which are subject to the seller's confirmation. That is why it is important for you to conduct all of your due diligence prior to the auction and prior to bidding on the Property. Winning bidders may be subject to liquidated damages if they fail to complete the transaction in addition to losing their bidding deposit. Please review the Auction Terms and Conditions for further information.
• Is financing available for Property purchases?
  No. Financing is not available and is not a contingency. All purchases must be funded in cash at closing.
• What documents will the successful bidder be required to execute?
  The successful bidder will be required to execute a Purchase and Sale Agreement and other pertinent and customary documentation involved in the purchase and sale of each Property. Such documents will be available for review in the secure data vault and are non-negotiable.
• Where and how will Property closings be consummated?
  Typically, closings occur at an escrow (title) office or law firm designated by the Seller, and upon the execution (and in some cases, recordation) of all documentation, title endorsements, the satisfaction of all closing conditions and Seller's receipt of all funds due, the transaction shall close. Such closings typically are required to occur within 30 (30) days of being declared the winning bidder.