Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in single-family homes
Invest in collectible assets
The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.
Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.
Investing on Rally carries risks, including fluctuating investment values and no guaranteed selling price. The unique nature of collectible assets also introduces specific risks. Detailed risk factors are outlined in each asset's Offering Circular or Private Placement Memorandum, available in the asset's "Legal" section for investor review.
Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.
Rally's platform offers liquidity through Live Trading, allowing investors to buy and sell shares in real-time during market hours via the PPEX ATS, after a 90-day lock-up period. Shares must be held for 5 business days before resale, with brokerage services provided by Dalmore Group, LLC, a FINRA and SIPC member.
Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.
Rally's historical returns on collectible assets range from 1.35% to 84% over holding periods of 2 to 6 years. These all-time returns reflect the varied performance of different assets within this timeframe.
Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.
Investments on Rally typically have a 2 to 6-year horizon, suited for medium to long-term growth. A 90-day lock-up period post-Initial Offering restricts immediate trading, emphasizing a strategic, longer-term investment approach.
To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.
Rally is open to U.S. residents over 18 with a Social Security number, bank account, ID, and address in the contiguous United States, who pass KYC and AML checks.
Real estate assets on Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.
The collectible assets on Rally, such as collector cars and memorabilia, exhibit volatility due to factors like consumer preferences, rarity, and market demand. Unlike traditional investments, their values can fluctuate unpredictably, reflecting the speculative nature of the collectibles market.
Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.
Rally operates under strict regulatory oversight, offering securities regulated by the SEC and partnering with FINRA and SIPC-member broker-dealers, ensuring investor protection. Its operations and assets are regularly audited for compliance, financial accuracy, and asset authenticity.
Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.
Rally protects its collectible assets with comprehensive insurance to cover damages or losses, ensuring investor interests are safeguarded against unforeseen circumstances.
Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.
Rally primarily offers returns through capital appreciation rather than dividends, with investors benefiting from selling shares at a higher price than the purchase price, based on the asset's value increase over time.
To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.
Investors can get their money back by selling shares on Rally after the 90-day lock-up period, during market hours, via the app. Success in selling depends on market demand. Shares must be held for at least 5 business days before they can be resold.
Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.
Rally charges no commissions or management fees on investments. Initial offerings include a sourcing fee detailed in each asset's offering circular. Instant Cash transfers incur a 1.5% fee with a $0.25 minimum, added to the transfer amount, but new users enjoy a 14-day fee waiver.
Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.
Rally issues 1099 tax documents to investors who sell shares or receive dividends, available in their Portfolio by March of the following year. Investors with active investments receive monthly statements, typically updated by the first week of each month, with new investments reflected within two months.