Rhove is a platform for fractional investing in real estate. They aim to enable renters to profit from their apartments by giving $50 in shares to anyone who moves into a Rhove property. Additionally, anyone can invest in Rhove projects, ranging from renovations to new builds. Fees are paid from the total amount raised by project sponsors so that Rhove users don’t take on the brunt cost of investment.
How you make money
While each Rhove deal is different, return is commonly generated through excess cash flow from operations. Payments are variable, and happen when there is income after liabilities and debts have been paid. Rhove investors also make money as the value of their real estate investments increase over time. Value increases are realized when there is a capital event like the property being sold, so it can be a while for Investors to make a sizeable return. Renters of Additonally, those who move into Rhove properties are given a $50 stake in their building, and are can invest in additional shares on the Rhove app.
How Rhove makes money
Rhove charges low fees to the real estate projects themselves. There is an initial fee of $5000 to list with Rhove and a 2% fee on the total amount raised for a project. So, when you buy one share of a project $.98 of your $1 investment goes to the project and $.02 goes to Rhove. This means investors have more cash to buy shares, but there is less capital for the projects themselves.
Is it safe?
Rhove has been successful so far and continues to partner with top real estate developers, but the nature of the asset makes it quite risky. No secondary market for Rhove shares currently exists, and since returns aren’t guaranteed, there's no set payout structure. Additionally, some projects listed on Rhove are pre-build and run the risk of serious complications during the building process. However, the platform has an incredibly low minimum investment and ultimately charges fees to the project instead of the investor, which eases some of the asset risk.