The Evolution from REITs to Rhove
By giving you total control of your investments, Rhove is revolutionizing the real estate game.
May 13, 2021
It's no secret that real estate can be an excellent investment. Historically, though, the wealth created by new developments in our communities has been reserved for a small, exclusive group of investors. If average Americans want access to invest in the places they care about and to partake in real estate's well-established cash flow, the traditional path has been to invest in real estate investment trusts (REITs).
REITs are companies that do the investing for you. They were originally established by Congress in 1960 to give small investors an unprecedented ability to earn value from real estate. Since then, over 200 REITs have registered with the SEC and traded on one of the major stock exchanges. To qualify as REITs, these companies have to invest primarily in long-term, income-generating commercial properties, and they distribute the majority of their taxable income in the form of shareholder dividends.
Companies that expand access and opportunity for everyone to own real estate… we love that, right? Well, kind of. REITs were an innovative blend of policy and market forces that gave more investing power to The People for half a century. The problem is, they don’t go far enough.
Rather than putting money into communities that you believe in, REITs only let you invest in the portfolio their managers put together for you. They require layers upon layers of middlemen, raising the barrier to entry and limiting the investor's role in the decision-making process. Many private REITs even exclude non-accredited investors, meaning those who make less than $200,000 per year and/or have a net worth of less than $1 million.
More from Rhove
Unlocking Multifamily Investment
You can see it, touch it, and feel it. You can live there, shop there, even raise a family there. Multifamily real estate is a growing sector in urban neighborhoods across the US. These iconic assets that often come to define neighborhoods can also be highly attractive opportunities––for accredited investors. We’re here to bring these opportunities to The People.
So, in a system that already excludes everyday people from participating in the value created in our communities, REITs don't exactly expand access for everyone to experience ownership.
What if anyone, anywhere, could invest in the places they love and have total control of their investment? What if you could walk by a building that inspires you, pull out your phone, and invest in it in under a minute?
Now you can, with Rhove.
Rhove is the only investing platform that expands access to the value created by real estate developments while giving investors the freedom to vote with their dollars at scale. For the first time, real estate developers can tap into everyday citizens' enthusiasm and passion for supporting their community. And the public can reward developers who add value to the community beyond the numbers that fit nicely into a spreadsheet.
By empowering 100 million new investors to own $100 billion in real estate equity, Rhove is on a mission to rebuild the world in a more equal and cooperative way. Join the waitlist and become one of the first new investors to experience a whole new kind of ownership.