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Startup lets you buy shares of ultra expensive cars, are houses next?

(REAL ESTATE) This cool startup lets you buy shares of rare classic cars, Ferraris, super cars, and the like – it’s not mainstream yet, but housing’s next. Here’s why.

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Startup lets you buy shares of ultra expensive cars, are houses next?

While the vast majority of cars significantly depreciate in value the moment they are driven off of the showroom floor, for those rare models that become enduring classics there’s typically two barriers to ownership: scarcity and price.

The market for collector cars thus has been limited to those few who were wealthy enough to afford the purchase, limiting ownership of vintage models such as Lotus, Ferrari, and Lamborghini to the select. And the value doesn’t decrease for these vehicles after the point of purchase; over the past decade, the value of classic cars has increased by over 400 percent, according to the Knight Frank Luxury Investment Index.

Rally Rd., a New York based company founded in 2016, offers those of us who would want to own such vehicles the opportunity to do so – or at least a portion of them.

The company selects cars to purchase based on market data that indicates that the vehicle is a good investment designed to yield returns, and then provides users with comprehensive information about the particular vehicle itself, including detailed overviews of the mechanical and visual aspects of the car. In the near future, there are plans to offer 24-hour access to a live stream video for users who have invested, allowing for a real-time connection to investments.

The process is straightforward for the investor.

Rally Rd. purchases the vehicles and maintains the titles. A subsidiary company is then created for each, with the company hosting SEC-registered offerings. Potential investors can then purchase one or more of the 2,000 to 5,000 equity shares in the cars during the investment window. Shares in the cars begin at $50 and increase steadily, depending solely on the car’s valuation, with the company not charging commissions or management fees.

“Each investment on Rally Rd. is essentially a mini public company,” says Christopher Bruno, the start-up’s co-founder and CEO, speaking to CNBC. “Our investors are able to create a custom, diversified portfolio of equity interest in blue-chip collector cars, share by share.”

Once a car is fully funded on the site, trading for that specific vehicle is closed. The company opens the window for trading on vehicles monthly, allowing users to buy and sell stakes in cars that they had previously missed, or those which they no longer want to own. For the investor, such a window allows them to realize increases in the value of their investment.

For example, a 1955 Porsche 356 Speedster’s window for trading closed in December 2018, with shares appreciating 15% from its initial valuation of $425,000 when initially offered, moving from $212.50 to $245.00. Rally Rd.’s inventory is always available for sale, with proceeds from the sale paid to shareholders, as well as additional dividends possible if the car realizes any special revenues, such as being rented for use in a project like a movie or television show. The decision to sell a vehicle from their inventory is made based on information from the vehicle’s investors, collected through their proprietary app, and the company’s advisory board.

With over 20 cars available, investors have a range from which to choose, and the company plans to have 100 in their inventory at the end of 2019. Buoyed by two rounds of funding this year, which netted it $10 million, Rally Rd. is planning to expand their investing opportunity from a website and an app to a vehicle showroom, much like other car dealerships, allowing users of the platform to attend initial offerings of new stock in person, if they so choose.

With the first such showroom set to open in SoHo in New York City, other possible locations for future showrooms include California, Florida, and Texas. To expand their portfolio for the investor, Rally Rd. expects to announce expansions into other arenas in 2019 as well, including investments in art and sports memorabilia, which, as markets, have a more established footprint in fractional ownership opportunities.

Rally Rd. sees these plans for expansion – of both products available for investment and method of doing so—as necessary to engage their diverse investor base. The company has seen a large majority of its users, which they number at over 50,000, come from the ranks of millennials. “They’re investing earlier. They want to see diversification. They’re comfortable investing online,” said Bruno, speaking to CNBC. “They seem to really fit our model very well. They get it immediately.”

We’re seeing the investment world open up to buying shares of alternative assets, even housing.

For now it’s not a mainstream method, but the housing market will be impacted by the creativity blossoming in America. Whether Rally Rd branches out into housing or multifamily is unknown, but others are already testing the waters, so stay tuned.

Roger is a Staff Writer at The Real Daily and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

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Refocusing your team before sales plummet

(REAL ESTATE) It’s that time of year again – holidays distract and procrastination sets in, so here’s how to refocus your team before they are led astray by the calendar.

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This time of year is always difficult in terms of focus. We universally obsess over resolutions and try to be motivated to perfect our lives, but by this week, reality has set in and we still haven’t bought a home in Belize or lost 25 lbs.

If you’re a broker or team manager and are noticing this lethargy or discouraged state with your team, consider stepping up as a leader to get the team to refocus.

As the seasons change, so can our moods. It can be helpful to have quarterly check-ins with your team (either one-on-one or as a group) to discuss current methods, trends, what’s expected on either side, and what can be improved.

This form of open communication helps employees de-stress and may help them recharge and regain motivation. Another communicative form can be found in surveys.

Sending check-in surveys via email to your team to assess their feelings of the workload, the market, and to voice any concerns they have – it can be a great way to open the door for bigger, more important conversations. These surveys can be formatted to be answered anonymously, as well.

Be sure to always be accessible and focused yourself, as you’re setting the barometer of expectation. Allowing for this open communication can let you know what can be improved on your end, which can aid in refocusing.

Another way to bring your team together is by taking everyone out for a quarterly lunch. This helps your agents to bond, while also feeling like their work is being appreciated; therefore, motivating them to keep on producing well.

At the end of the day, you can’t be everyone’s friend, soo, if you’re observing behavior that seems to be unproductive or unfocused, don’t be afraid to speak frankly. Sometimes all it takes is for that behavior to be acknowledged to convince someone to step up their game.

Remember – each team and each manager is different. The attempt to get everyone on the same page and to continuously make strides as a team can take trial and error, but it’s something to always be cognizant of to avoid issues in the future and keep sales on track.

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Financial tool indie brokers can use to act more like the mega brokerages

(FINANCE) Indie brokers are often more focused on marketing than operations, but there are tools available to boost business and act more like the big boys.

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There are so many variables that go into operating an independent brokerage; so much so, that it makes coming up with the brokerage model look like the easy part.

One of the variables that takes (often the most) priority is money. You need to know what you’re spending versus what you’re making and how that adds up (pun intended).

Luckily, there are people out there laser focused on making sure that your business is properly tracking cash flow. One such business is flowpilot.

“flowpilot is the easiest way for businesses to plan and manage their cash flow actively. Cash flow planning has never been this easy!” said Founder and CEO, Bernd Thöne. “Simply upload your accounting data and get an overview of your current and forecasted cashflow. Recognize risks and optimization potentials early as they arise and get tips how to eliminate them. Make better decisions by easy and quick simulations simply without effort.”

Additionally, flowpilot presents a user’s liquidity in clear diagrams after analyzing the cash flow. It also allows a user to see projections up to five years in the future. Features include: precise liquidity management, sound decisions, and cash flow control liquidity calculation.

With flowpilot, users can achieve full transparency about the liquidity of their company. This way, they always know exactly where they stand and flowpilot can help you to make informed decisions.

The system uses real-time data in combination with AI algorithms to calculate liquidity forecasts and scenarios. With this, users can plan more strategically and create secure forecasts.

For liquidity calculations – flowpilot is serves as a financial advisor that is available at all times – the evaluation of a user’s financial data is handled by the program’s AI system.

Users register for free (a 14-day free trial is currently available), upload their initial bookkeeping, and then receive a monthly historical overview of their company, and the ability to intelligently plan cash flow as users automatically receive an informed liquidity plan for the next 12 months.

Lastly, you can recognize risks early on and switch to optimizing finances with scenarios built into the platform.

The company boasts itself as easy, smart, and fast. With a 14-day free trial, it could very well be worth a try for your brokerage for a competitive advantage in a world where only the mega-brokers financially forecast.

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Real Estate Brokerage

Is there a difference between leadership and management?

(REAL ESTATE) The two terms, leadership and management, are often used interchangeably, but there are substantial differences; let’s explore them.

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Some people use the terms “leader” and “manager” interchangeably, and while there is nothing inherently wrong with this, there is still a debate regarding their similarities or differences.

Is it merely a matter of preference, or are there cut and dry differences that define each term?

Ronald E. Riggio, professor of leadership and organizational psychology at Claremont McKenna College, recently described what he felt to be the difference between the terms, noting the commonality in the distinction of “leadership” versus “management” was that leaders tend to engage in the “higher” functions of running an organization, while managers handle the more mundane tasks.

However, Riggio believes it is only a matter of semantics because successful and effective leaders and managers must do the same things.

They must set the standard for followers and the organization, be willing to motivate and encourage, develop good working relationships with followers, be a positive role model, and motivate their team to achieve goals.

He states that there is a history explaining the difference between the two terms: business schools and “management” departments adopted the term “manager” because the prevailing view was that managers were in charge. They were still seen as “professional workers with critical roles and responsibilities to help the organization succeed, but leadership was mostly not in the everyday vocabulary of management scholars.”

Leadership on the other hand, derived from organizational psychologists and sociologists who were interested in the various roles across all types of groups; so, “leader” became the term to define someone who played a key role in “group decision making and setting direction and tone for the group.

For psychologists, manager was a profession, not a key role in a group.” When their research began to merge with business school settings, they brought the term “leadership” with them, but the terms continued to be used to mean different things.

The short answer is no, the two terms are not the same; simply because leaders and managers need the same skills to productive and respected.

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