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.

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox

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

Iowa police hope new website helps solve Realtor Ashley Okland’s murder

(REAL ESTATE) A tragic end to a young Realtor’s life brought Realtor Safety to the forefront for so many practitioners. While still an unsolved case, police hope a new website will generate interest, tips, and hopefully the missing puzzle pieces.

Published

on

okland

Eight years ago this week, Iowa Realtor, Ashley Okland was brutally gunned down in a model townhome while she worked. She was only 27 years old. Open houses in the city were immediately shut down, as it was thought it could be a serial killer targeting agents in the field. That theory has since been put to bed.

But the case continues to plague the officers that have spent nearly a decade investigating, and despite hundreds of leads and interviews, it remains an open case.

Local police say they are still getting tips trickling in, but “It’s like a puzzle that you’re trying to put together and you’re wanting to find those last few pieces to complete it,” West Des Moines Police Department’s (WDMPD) Lt. Anthony Giampolo, told KCCI.

In hopes of finding those final pieces, WDMPD has set up a website called Answers For Ashley where people can submit relevant tips anonymously online.

The site appears to be a work in progress, as only the “submit a tip” feature works, but the wish is that offering an additional outlet for tips could solve this murder.

Okland’s murder inspired the industry to revisit (and establish) safety plans, and several Realtor safety apps were born. Her situation was one that was so relatable, it generated a lot of conversation and idea sharing, making a long-lasting impact on the real estate industry.

Okland is not the first or last Realtor to be murdered – beloved Jacksonville Realtor, Derrick Hartley was gunned down in a road rage incident this month, leaving behind five children. Asheville Realtor, Tina Kessinger was savagely stabbed to death with a screwdriver and tossed into a dumpster. And we’ve lost others – an El Paso Realtor recently died in an ATV accident, a Kentucky Realtor died in a hit and run auto accident, and a Florida Realtor died in a freak accident, falling from a boat. An unnamed Chicago Realtor was recently attacked with a stun gun in what would have been a sexual assault had she not gotten away to call police. The list is far longer, but these recent incidents have scarred the industry.

Okland’s case has always been on the industry’s mind is because it is thought to have happened in conjunction with her career, while she was at work. Potentially similarly to another high-profile case, Beverly Carter’s 2014 murder.

Realtors are often in a vulnerable position, spending time alone in the field, and while Okland’s murder very well could have had nothing to do with her profession and being alone in a model, it is worth considering how your team is educated on the topic of Realtor safety.

The National Association of Realtors offers ample Realtor safety resources and recently launched an alert system, akin to Amber Alerts (read about the Realtor Safety Network and know how to file an incident report).

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox

Continue Reading

Real Estate Brokerage

The game doesn’t matter until you keep score

(BROKERAGE) How you collect feedback can determine whether your service actually improves or not. #science

Published

on

Every significant endeavor utilizes measurements and scorekeeping to record activities and progress. The most trivial of human pursuits often involves record keeping and statistical analysis.

While the sales and production side of real estate services are measured in-depth, the service side of the business enjoys less measurement, scorekeeping, and analysis than one might find associated with the performance of a neighborhood Little League team.

What does this truly say then about the importance many brokers, owners or managers place on service delivery, customer satisfaction, consistency and service performance?

It’s true that a few organizations do attempt to measure service performance by means of a customer satisfaction survey. Most of these programs are produced and administered internally. The surveys are sent under the company banner and the company tabulates the results.

First, when a customer is asked directly by the professional or the company for performance/satisfaction feedback, that feedback is always more positive than what is obtained by an independent, third-party asking the same questions.

This is known as the halo effect. Consumers are more diplomatic in their response to the person or company that provided the service.

Second, internal service/satisfaction assessment programs typically develop standards and objectives to validate the belief that good service is already being delivered. Thus this positively biased feedback data suits the objectives of the internal program just fine.

It’s just that measurement of those areas of service performance that sellers and buyers feel are important is not taking place.

For those more serious about customer service satisfaction and service performance assessment, there is recognition that the halo effect lessens the value of the data for internal use, and that keeping score of one’s own results has less credibility externally.

Instead, they seek the objectivity and credibility that third party validation of service assessment can provide.

Ironically, even without expert resources and objectivity the attention that measurement brings to the organization will effect positive results and performance improvement. This phenomenon is known as the Hawthorne effect.

The effect was first noticed in the Hawthorne plant of Western Electric. Production increased not as a consequence of actual changes in working conditions introduced by the plant’s management, but because management demonstrated interest in such improvements.

Unfortunately, this phase of initial improvement is not sustainable. Sustaining improvement requires more than measurement and leadership interest. Action steps that result in the actual improvement of the situation must follow collection of data.

Measuring service results and satisfaction in the real estate organization is an important first step. It will certainly gain the attention of the organization and send a serious signal.

Sustaining organizational interest and performance improvement requires more.

It requires systematic and timely feedback, objectivity, systems and service delivery processes, coaching and recognition/awards. But it really all does start by keeping score.

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox

Continue Reading

Real Estate Brokerage

Google’s secret formula for the perfect team (that you should emulate)

(BROKERAGE NEWS) Google is famous for building high quality teams that change how technology works, so let’s talk about what they do well so you can emulate them.

Published

on

dot com .realtor

Google is infamous for having highly functional work teams, and for being a great company to work for. What accounts for the success of Google’s teams?

It’s relatively easy to discern the effectiveness of an individual employee. It’s a bit more challenging to figure out how to study what makes a group thrive or fail – but Google has done it.

A few years back, they released the results of an internal two-year study of their own teams.

Google conducted 200 interviews, and analyzed 180 of its teams using a list of 250 attributes in order to see what characteristics are most important in making teams successful.

The results show that the attributes of individuals on the team are less important than how they work together. The single most important factor in determining a group’s success turned out to be something called “psychological safety.”

In teams with a high degree of psychological safety, members are unafraid to take risks, and are unembarrassed to ask questions and make mistakes.

In other words, people can be vulnerable with one another without fearing negative reactions.

Said Google, “Individuals on teams with higher psychological safety are less likely to leave Google, they’re more likely to harness the power of diverse ideas from their teammates, they bring in more revenue, and they’re rated as effective twice as often by executives.”

Other factors that made a big difference were dependability (team members can rely on one another), structure and clarity (the goals, roles, and plans of the group are clear), meaning (the goals are important to the individuals on the team), and impact (the team members believe that what they are doing is important).

Factors like how much the team members have in common and their experience and education levels were much less important than one might think.

In a nutshell, great teams aren’t as much about great people as they are about great teamwork.

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox

Continue Reading
Advertisement

Our Parnters

Get The Daily Intel
in your inbox

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

Emerging Stories

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox