Connect with us

Real Estate Brokerage

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.

Published

on

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!

Continue Reading
Advertisement

Real Estate Brokerage

How to scout, secure, and supervise a team of true all-stars

(BROKERAGE) Building a team can be hard, especially building a team of all stars. Here are a few tips to make the process seamless.

Published

on

assertive broker meeting negotiation team

A good way to win? Play as a team. The best way to keep winning? Build an awesome team. There’s strength in numbers, even for the best broker — but that doesn’t mean you can just throw together a few qualified realtors and expect sales to double.

According to a recent survey by Bain & Company, the majority of senior executives form teams based on whoever is available rather than scouting the best talent for the job. Sure, the first method is easier, but it’s also 25% less productive.

As a broker, you can’t rely on your best guy to carry the firm’s success.

Realtors can come and go as they please.

If your best guy/gal decides to jump ship, they could leave your whole brokerage, for lack of a better word, screwed. You need all your guys to be your best guy. Keep these important tips in mind when building your real estate team.

Potential is great, but performance is what moves the needle. When interviewing candidates, seek out those who are not only experts, but who are also energetic, driven, and enjoy working in teams.

In most organizations, one in seven employees is a star.

When seven in seven are stars, productivity increases exponentially.

Everyone from your admin assistant to your coordinators to your agents should be passionate about their work and focused on success. All too often, firms hire “good enough” people in the interest of time, assuming things will come out in the wash thanks to one or two awesome agents.

But here’s the thing: a balanced team isn’t an all-star team.

It might stay afloat, but it won’t pick up speed.

Chances are the agents on your team know how good they are, and that means they also know their talents would be valued elsewhere — possibly with a competing broker. It’s your job to give them incentive to stay onboard.

Acknowledge achievements by awarding leadership roles to standout individuals so they know they’re a crucial part of the firm. Meet regularly with each team member to go over any issues or highlights they’ve experienced and identify any themes that may be emerging within the team as a whole.

Make encouraging and motivating one another an integral part of your team’s interactions.

They should be competing against themselves, not each other.

Make team performance a major determinant for compensation and promotion rather than strictly rewarding individual performance. This way the whole team will strive to help each other be at the top of their game every day. This also helps keep egos in check, which is necessary in all-star teams: when everyone’s the best at what they do, they’re bound to get a little cocky sometimes.

There’s no perfect formula for managing a real estate team. As you hire and train employees, keep your standards high and your mission focused.

Do this, and you won’t have to search for the best; the best will come to you.

Continue Reading

Real Estate Brokerage

Realtors in this state are at risk of losing independent contractor status

(BROKERAGE) Realtors in NJ are being threatened to have their independent contractor status revoked. What this means for the industry going forward.

Published

on

New Jersey where Realtors are at risk of losing independent contractor status.

Independent contracting comes with its pros and cons. The major pros are choosing a self-supporting career that doesn’t hold you to a specific time limit, how many hours to work in a period, being liable or loyal to your sole employer, and so on so forth. There’s a lot of autonomy in being an independent contractor and many, both in and out of the real estate industry, have chosen this path in recent years.

However, due to its newfound popularity, independent contractor status has come under fire in the past few years. Most notably was the controversial California legislation, AB-5, which some say devastated the freelance industry in the state. The latest issues over independent contractor status comes from New Jersey, in which a bill was introduced to protect the status of real estate agents as independent contractors. The legislation, A6206, was introduced in December 2021 and passed in both Houses in just two months. A6206 “Codifies right of real estate broker-salespersons and salespersons to define the relationship with the broker as one between broker and independent contractor or employee and enforces current and previous written agreements addressing relationship.”

Will A6206 pass?

A6206 is waiting for the governor to sign it to finalize the legislation. The New Jersey REALTORS® association asked real estate agents across the state to contact the governor to sign the bill. As the bill passed the Senate with governor’s recommendations, it may have been simply a formality. The bill passed unanimously through the State Senate and the State Assembly, but many professional organizations suggested that real estate agents let the governor know they supported the bill.

What this means for the future

According to the NAR, new federal and state legislation threatens IC status, especially that of real estate agents, which is a bedrock in the industry. The federal government is very interested in workers’ classifications, as it has direct implications on taxes. To that end, many states are now looking at workers’ classification and attempting to push through legislation to protect workers. Real estate agents need to be aware of the issue to ensure that their rights to continue to work as independent contractors aren’t taken away.

This could be a sign of things to come across the board. NJ is up against a huge fight, so watch your own state’s legislation closely and if you feel strongly on the matter, don’t be afraid to call your state representative and let them know your thoughts.

Continue Reading

Real Estate Brokerage

The top 5 myths about starting your own business, BUSTED!

(BROKERAGE) Growing your company based on success stories of others can lead to some common misperceptions, don’t believe the myths you hear!

Published

on

desk office scheduling myths

We’ve all seen the dramatic tales of college kids chugging Red Bull, coding a site, and becoming billionaires, and we’ve heard a myths about companies that went from idea to fame in mere weeks, but the truth is that those are exceptions to the normal business rules. We’re all familiar with the success stories of entrepreneurs that were perfectionists and filled with passion.

These exciting stories often become the basis of comparison for many professionals and entrepreneurs, and risks are taken and avoided based on the success journeys of predecessors. So what are the most common myths surrounding how to grow a company?

We asked Himanshu Sareen, CEO at global technology consulting firm, Icreon Tech, Inc. to dispel these myths. Below, in his own words are the 5 most common myths about growing a company:

Myth #1: take every project that comes your way

Although ambition is crucial for growth, it can also be a downfall. For a great deal of up-and-coming businesses, it is fairly easy to bite off more than one can chew. Landing an international Fortune 500 client may seem like the turn-key solution to grow a business, but use caution. The same goes for contracts with monetary value that is below a certain threshold.

While small in size, such projects can quickly take up valuable time and resources.

Remain practical and focus on what is feasible in terms of the organization’s bandwidth. If a business dives in too deep, they may very well find themselves out of their league. My best advice would be to choose projects with a sustainable long-term vision in mind.

Myth #2: ignore culture, it can wait

Holding off on establishing a solidified company culture can equate to significant obstacles down the road. As a company grows and adds on members there is less and less time to focus on establishing a company culture. By focusing on culture, meaning the attitudes, expectations, and environment of a company, a business can better position itself for growth down the road.

And don’t just think about ping-pong tables and trendy branded T-shirts.

As a business grows, founding members are the arbiters of culture. Such critical players are the ones in place that are in charge of approving new hires, and they should live and breathe the essence of the team.

When a business places culture on the back-burner, the major impediment that results rests in the hiring area. Without a team that melds and collaborates effectively, growth is guaranteed to be stymied.

Myth #3: don’t sell until the product is perfect

Maintaining the delicate balance between expanding the sales pipeline while simultaneously building the logistical capacity to deliver, is a constant struggle. There is a pervasive mindset to refine until perfection before heading to market. Although such caution is warranted, focus on a parallel approach to aggressive growth and delivery. Rather than holding off on sales and revenue growth while a product or service is refined, a business should drive forward and build as much as possible.

Although growing and simultaneously expanding to compensate is a challenge, it is preferable to go through the cyclical phases of focusing solely on sales and re-adjusting to attend to growth. The temptation to yo-yo between the two can severely hamper expansion. Such an approach can easily kill positive momentum. There needs to be a constant and vigilant parallel focus on gaining new business and building the resources to deliver.

Myth #4: there is no room for bad decisions

Experimentation is the key to innovating. And with any experiment, there is a chance of failure. But do not fear failure. Although it is a played-out quote, failure is one of the greatest teachers in life. Facebook famously centers their operations on the mantra of ‘Move Fast and Break Things’. Making mistakes is a vital part of the process needed for growth.

Businesses can only expand by stepping outside of the comfort zone.

Expansion requires delving into emerging markets, executing new marketing campaigns, or taking a chance on ‘outside the box’ hiring prospects. Although failure may occur, it should not prevent valuable experimentation.

Myth #5: credentials are everything

While top-tier graduates and stellar resumes may seem like the secret weapon for success, credentials are not the only qualifier for greatness. Often times the qualities of a high-performance rockstar cannot be properly communicated through a resume or cover letter. In-person communication and personality are critical. Flexibility, communication, and work ethic are what you need as a smaller company pursuing growth.

In some instances, focusing too heavily on credentials can end up turning you into the 2008 New York Yankees. This also ties back to the importance of establishing culture from the outset. With an established culture, a business will be able to attract the valuable team members needed to truly meld with the team.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox