Rally Rd Lets You Invest like Great Gatsby
You’ve probably seen Jay Leno’s car collection. Leno’s car collection, at the latest count, has over 130 automobiles. His collection includes classic cars and modern vehicles. Lastly, they are all very expensive, but you probably already knew that. The total value of these cars is likely to worth at least $50 million.
This car collection is just a small part of his overall net worth.
Yet it is something many would have to aspire to in their life and would still fall shy of their goals. Indeed, rarity and beauty give it value as it always seems just out of reach, like the green light in Great Gatsby.
So what are the majority of the population to do?
Live their lives without ever having the opportunity to invest in expensive iconic vintage cars?
In a past era, most could only stand and gawk, but today, with Rally Rd., they can invest like the rich.
What is Rally Rd?
Rally Rd is an entity headquartered in New York and runs a mobile application that lets you invest in masterpieces like a rare old school Lamborghini. Rally Rd enables you to have access to investments that were just out of your reach in the past. It is an investing platform for rare vehicles.
The founder, Chris Bruno, created Rally Rd with his longtime friends to allow everyone to participate in investing and in collecting classic cars.
Rally Rd is a part of the fractional investing movement that is slowly becoming a popular investing method with applications such as Robinhood, Square, Acorns, and other applications rolling out fractional stock investing.
Bruno has experience in the venture capital domain in various segments; his partners have also worked in the financial sector in positions such as investment banking. Luckily, they added one more partner who focused on design, which helped them create the Rally application.
Creating Rally Rd was far from simple.
They had to assess a portfolio of collectible cars and understand which ones would rise in value over time. They couldn’t just pick any car; they had to choose the best by understanding the overall market.
Of course, critical components in this process include provenance, scarcity, and originality.
The Type of Cars on the Rally Rd Market
The Rally Rd. Collection consists of around 40 cars and includes a 1988 BMW M3, a 1963 Chevrolet Corvette, among other compelling and fascinating vehicles. The firm hopes to increase its stable to more than a hundred and have a physical presence in the future.
Rally Rd and Interesting Aspects
I’m interested in Rally Rd because of two things, the fact that it is alternative assets, and two because of its provenance, authenticity and originality aspects.
The founders like to think of the application as one that caters to categories that may seem if they are passion oriented, like cars, coins, wines, and art. Rally Rd wants to give more people access to collectible vehicles. Investors can buy pieces of art and have a secondary market to get liquidity. People can buy and sell pieces of ownership of these rare items with minimal hassle. The firm handles buys and sells by having the market meet on an item once per month, according to a Rally Rd founder. The reason why these assets are supposed to be a good investment is that other rich people appreciate them and like them.
There is a demand for the product.
These cars are not used in a utilitarian manner, no, they are there to behold, to aspire to, and invest in.
Rally Rd has hopes of crossing over into other categories and becoming just Rally as a result. Potential asset categories include political, sports, and celebrity memorabilia to other assets.
Is Rally Road Legit?
The firm does work with the SEC and regulated broker-dealers to create a market and parallel the equity market. Finally, it is only open to US investors at the moment.
Investors can start with as little as $50, be over 18, have an i-phone, and be able to provide a social security number.
But should you invest?
Rally Rd As a Real Investing Option
Will Rally Rd offer superior returns over the long run? How much of your cash should you allocate to these collectibles?
Rally Rd is an interesting concept in an era where people are choosing alternative investments to find yield. But how do you value these assets? Do you do so by looking at low interest, repo activities, and quantitative easing, allowing for more demand for yield and alternative asset classes?
The valuation is the tough part, and it is difficult to understand if your investment will appreciate over time.
So far, a good majority of cars on Rally Rd have trended up, but we’re in an unbelievable market where equities are said to be overvalued and have been in a period of low-interest rates for some time.
Will someone always be there to make a bid?
Rally Rd, is maybe for some investors, but I don’t know if it is for me. I might change my mind if I visit their showroom at 250 Lafayette St 3rd floor, New York, NY 10012, but I think I’m mostly happy holding my bitcoin. I know I’ll probably buy if they happen to become distressed assets with a larger chance of going up.
Lastly, I think Rally Rd is about telling a compelling aspirational story, it’d be a creative birthday gift or Christmas gift, you can proudly say (while sipping your Perrier), I just purchased a portion of ownership in a 1981 De-Lorean DMC-12 or a 1971 Ferrari Daytona 365 GTB/4 and I’m giving it to you. Remember, its only a portion of ownership, you’ll have to figure out how to own the rest of it.