This article focuses on investors who would like to sell their holdings in an offering listed on the marketplace.
In order to let you put an ask on one of your holdings, SecondRE, with your consent, will reach out to the sponsor managing the offering and obtain information on the size of your current equity stake in the investment.
Once that is completed, you will get an email that guides you on how to place an ask on your holding.
Your equity is represented by shares. 1,000 shares are equivalent to 1% of the investment’s total equity. You can see your number of shares on the relevant marketplace offering and on the offering page.
Depending on the guidelines set by the sponsor, you would be able to put an ask on all of your shares or on a partial amount.
Placing an ask is simple: select the relevant offering, click on the Sell button, and select your expected sell price.
Once that is complete, your ask will be placed in the order book. Potential buyers will be able to place a bid in order move ahead and enable a transaction.
When a relevant bid will be placed, you will be notified and SecondRE will match the ask and bid orders.
SecondRE will contact the sponsor to get its consent to the deal. Once received, an escrow account will be set up and final checks will be made.
When the funds will arrive at the escrow account, a four-way transfer agreement document will be sent to you, to the buyer, to the escrow agent, and to SecondRE. After all parties have signed the document, you will receive the payment for the sale and the sponsor will assign the sold equity stake to the buyer.
Post-closing, the sponsor will supply the last K-1 tax document applicable to you at the regular K-1 delivery schedule reflecting the transfer in ownership.