Guaranteed Returns

Through a unique program offered by FIAS, we provide lenders and other sellers the ability to maximize the value of their assets through absolute auctions, while providing the protection of a guaranteed minimum return. At absolute auctions, assets are sold to the highest bidder regardless of price. The prospect of being able to buy an asset for pennies on the dollar is an overwhelming lure to bidders at absolute auctions. Simply put, more people attend or participate in absolute auctions than other types of auctions because of the certainty the property will be sold even if the high bid is far below market value.  That  affords bidders the opportunity to get a  “steal.” In reality, with more bidders, there is more aggressive bidding, and higher pricing (in many cases the heat of competition drives pricing up above actual market value).  Absolute auctions, therefore, provide an exceptional disposition methodology for sellers looking to maximize the sales value of their assets and to complete dispositions  with certainty by a specified date. To provide sellers with protection against “low ball” bidding and unacceptable results, we can provide downside protection via a program that  guarantees an acceptable minimum return. In the event that the high bid at an auction does not exceed the guaranteed amount, we will pay the differential or acquire the asset for a price sufficient to  provide the seller with such return.  This provides sellers the increased upside potential of an absolute auction with none of the downside risk. In exchange for the guaranty, we become entitled to a guaranty fee, and a share of proceeds above the guaranteed amount.