Join the Future of Investing: Rally Road’s Fractional Ownership Platform Allows You to Invest in Rare Collectibles and Exotic Assets starting at $25 per share.
Quick Summary:
Rally Road is an alternative investment platform that allows users to invest in shares of rare collectibles and luxury assets.
Overall Rating:
PROS
Access to rare and unique assets
Investors can buy a fraction of an asset, starting at $50
CONS
Limited liquidity
Unclear fee structure
What is Rally Road?
Rally Road is an alternative investment platform that allows users to invest in equity shares of rare collectibles and luxury assets. The concept behind Rally Road is to make alternative asset investing accessible to a wider audience by allowing users to invest in assets previously only available to high-net-worth individuals and institutions.
In this Rally Road review, we will look at Rally Road’s investment process, user experience, and whether Rally Road is the right alternative investing platform for you.
The company was founded in 2016 and is headquartered in New York City.
Who should use Rally Road?
Rally Road is good for…
Investing with Rally Road may be a good fit for individuals interested in alternative investments and comfortable with the risks associated with investing in collectibles and rare assets. These individuals should have a long-term investment horizon, as the value of these assets can fluctuate over time.
Rally Road is not good for…
Risk-averse investors: Investing in collectibles and rare assets can be volatile and subject to fluctuations in value. Investors uncomfortable with this level of risk may want to consider more traditional investment options.
Investors who need liquidity: Collectibles and rare assets can be illiquid, making them difficult to sell quickly. Investors needing immediate funds access should consider more liquid investment options.
How does Rally Road work?
As an alternative investing platform, Rally Rd helps individuals invest in shares of rare collectibles and luxury assets. Rally Road aims to make alternative asset investing accessible to a wider audience by enabling users to invest in assets previously only available to high-net-worth individuals and institutions.
From account sign-up to asset sales, Rally Rd makes it easy for users to invest in unique assets.
1. Sign up
Sign-up on rallyroad.com or download the Rally Road app for Apple or Android and create an account. You’ll need to provide some personal and financial information, including your Social Security number, to complete the registration process.
2. Browse available offerings
Once you sign-up, you can browse available investment offerings. Each investment opportunity represents a unique asset, like a classic car or a rare baseball card. The site makes it easy to quickly browse offerings a review relevant details like price per share and details about the asset.
Rally Road identifies rare and collectible assets that they believe will appreciate in value over time. They then acquire the assets and have them professionally stored and maintained.
Rally Road conducts an independent appraisal of each asset to determine its value. This appraisal is based on factors such as the asset’s rarity, historical significance, and condition.
3. Buy shares
After Rally Road buys an asset, they divide it into shares, with each share representing fractional ownership in the asset. The asset’s value and desired offering size determine the number of shares.
Once you find an offering you’re interested in, you can purchase shares through the Rally Road website or app. Rally Road typically sells shares in each asset for $5, $10, or $25. You can buy as many shares as you’d like, up to the maximum number of shares available for that particular asset.
4. Track your investments
Once you’ve invested in an asset, you can track its performance through the Rally Road app or website. You’ll receive updates on its value and any relevant news or events that could impact its value.
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5. Generate returns
Investors receive returns on their investments in two ways, through buy-outs or selling their shares on Rally’s secondary market.
Buyout
An asset is eligible or buyout offers at any point after the completion of that asset’s Initial Offering.
In order for a buyout to occur, shareholders must vote either “yes” or “no” on the decision to sell the asset. A poll is conducted via email and contains all pertinent buyout details, including potential returns.
Upon conclusion of the poll, results are distributed to Rally’s 3rd-party Advisory Board, which is composed of experts across the industry and our various asset classes.
The Advisory Board takes into account both individually weighted and share-weighted poll results as well as market conditions when making a decision.
To date, the Advisory Board has only voted yes when either the individual-weighed results, share-weighed results, or both indicated “Yes”, but reserves the right to do otherwise if appropriate.
Secondary Market
Another way investors can exit their investments is by selling their shares on Rally Road’s secondary market.
This provides liquidity for investors who want to sell their shares before the asset is sold or reaches maturity. After 90 days, investors have the chance to sell shares through bid/ask trading on Rally’s secondary market.
There may be some restrictions on when you can sell your shares, plus there may be selling fees.
Pros Explained
There are several advantages to investing in collectibles through Rally Road.
- Diversification opportunities. Investing in an asset that is not correlated to the fluctuations of the overall stock market provides an opportunity for investors to diversify their portfolio and make potentially outsized market returns.
- Access to rare and unique assets. Money aside, It’s pretty cool to own part 0.25% of a Warhol or 1% of a Porsche, especially if you are an enthusiast in those categories.
- Low investment minimums. Another great benefit of Rally Road is its low investment minimums. Rally Road is democratizing how collectibles can be bought and sold by everyday individuals.
Cons Explained
While there are several advantages of investing through Rally Road, there are also some disadvantages investors should consider.
- Limited liquidity. Because the assets offered on Rally Road are collectibles, there is no active market to quickly sell your investment. While they do offer a secondary market, shares certainly will not sell as quickly like a stock or bond would.
- Unclear fee structure. Rally Road does not charge any upfront fees but instead bakes the fee into an asset’s offering price, making it difficult to truly understand the fees you are paying without digging into the offering documents.
- The reason they may not disclose fees upfront is that illiquid assets tend to have large fees, hence disclosing a 10% upfront may turn away several potential investors. That’s not to say their fee structure is unreasonable, but seeing such large fees could be unsettling for some individuals.
User Experience
While there is a wide range of alternative investing platforms available, Rally Road engages its users by creating a seamless user experience by offering a well-designed investment platform, transparency in its investment process, and top-notch customer service.
Platform ease-of-use
Rally Road’s platform is user-friendly and easy to navigate.
When I signed up on my desktop, I had no issues understanding how to navigate the platform and reviewing asset offerings.
At the same time, the mobile app provides an intuitive interface that allows investors to browse available offerings, view asset details, and invest in just a few taps. The mobile app also offers features like push notifications, so investors can stay up-to-date on their investments.
Asset Information
Rally Road provides detailed information about each asset on its platform.
Investors can view high-resolution photos of the asset, read a description of its history and provenance, and see the independent appraisal that determined its value. The platform also offers a Q&A section where investors can ask questions about the asset and receive answers from Rally Road’s team.
Transparency in the investment process
Rally Road aims to be transparent about the investment process and the risks involved in investing in collectible assets. The platform provides information about the appraisal process, the expected holding period, and the potential risks and benefits of investing in each asset.
Investors can also view the terms of the investment offering and the legal disclosures associated with each investment.
Customer Service
Rally Road offers customer support through its mobile app, email, and phone. Investors can reach out to Rally Road’s support team with questions or concerns about their investments. Rally Road aims to provide prompt and helpful responses. The platform also offers an FAQ section that covers common questions about investing on Rally Road.
Investment Options Explained
Rally Road offers a wide range of investment options, including:
Rally Road Investment Options:
- Luxury cars: Ferraris, Porsches, and BMWs
- Watches and Luxury goods: Rolex, Audemars, Birken bags
- Books and Art: Andy Warhol, Declaration of Independence, Batman comic books
- Sports Memorabilia: Baseball cards, signed basketball jersey
Before investing, there are several key features you should identify to ensure it is a high-quality investment opportunity.
- Rarity and uniqueness: Rare and unique items tend to hold their value better over time, making them attractive investments. For example, a limited edition sports car or a rare piece of artwork may appreciate in value over time as demand for these items increases.
- Historical significance: Items with a rich history or cultural significance may hold greater value than more common items. For example, a sports memorabilia item associated with a historic sporting event or a vintage car associated with a famous historical figure may hold greater appeal for collectors and investors.
- Condition and authenticity: The condition and authenticity of an item can greatly affect its value. Investors should carefully consider the condition of an item before investing in it, as items in poor condition may not appreciate as much over time. Additionally, it is important to ensure that the item is authentic and has not been tampered with or altered in any way.
- Market demand: The demand for an item can greatly affect its value. Items that are in high demand among collectors and investors may appreciate more quickly than items that have less appeal. Investors should consider the current market demand for an item before investing in it.
- Expert analysis: Rally Road employs a team of experts who carefully evaluate each item before it is listed on the platform. Investors should carefully review the expert analysis provided by Rally Road before making an investment decision.
Alternatives to Rally Road
If you’re not quite sold on Rally Road, there are several alternatives to Rally Road that may better suit your needs.
Otis
Otis is a mobile app-based platform that allows investors to buy and sell shares of rare collectables and contemporary art, while Rally Road offers a wider range of assets, including classic cars, watches, and sports memorabilia. Otis charges a 10% fee on the total price of an asset when it is sold, while Rally Road adds in any fees to an investment’s offering price.
Yieldstreet
YieldStreet is an alternative investment platform that offers alternative investment opportunities to accredited and non-accredited investors. The company’s platform provides access to a variety of asset classes, such as real estate, art, commercial loans, and legal finance. Unlike Rally Road, Yieldstreet does not offer investment opportunities in collectibles like sports cards, cars, and memorabilia.
Masterworks
Masterworks is another alternative investment platform. The key difference between these two platforms is that Masterworks focuses solely on fine art, while Rally Road offers a wider range of assets for investment, including classic cars, sports memorabilia, and rare collectibles.
The company purchases blue-chip artwork, such as paintings by Pablo Picasso or Claude Monet, and then offers investors the opportunity to invest in a share of that artwork. Investors can purchase fractional ownership in these pieces, similar to buying shares in a company. When the artwork is sold, investors receive a portion of the proceeds proportional to their ownership stake.
The Bottom Line
Rally Road provides a unique opportunity for individuals to invest rare and unique collectibles with a low minimum investment. At the same time, given the illiquidity of such of assets, I certainly wouldn’t liquidate 401k and invest in in a Ferrari.
That said, the design and ease of use of the platform and opportunity for diversification makes it quite enticing to invest with Rally.
Afterall, it’s kinda cool to say you own 0.10% of a Ferrari.
Frequently Asked Questions
Is Rally Road legit?
Yes, Rally Road is legit. All its investment offerings are registered with the SEC.
Do I need to be an accredited investor to invest?
No, the vast majority of the investment opportunities on the App are available to all investors, provided that you do not invest more than 10% of your annual income or net worth in any of our offerings. If you are accredited, that limitation does not apply.
