The Portara Ecosystem

Luxury residential real estate is a top choice for high net worth individuals due to its stability and potential for appreciation. Over 50% of UHNW investments are in real estate (2023 Knight Frank wealth report). With a $250 trillion residential market and increasing institutional interest, luxury short-term rentals are the most attractive, scalable and profitable opportunity in real estate today.

Short term rentals add a hospitality layer to luxury residential real estate, increasing yields without compromising asset stability. Our flagship fund unlocks the potential of STRs and brings together a vibrant community of stakeholders. Whether a passive investor looking to have their money put to work, a global traveler, a home owner or a real estate/hospitality professional, we harmonize hospitality and real estate investment with multifaceted a global community.

Return Based Investors

There is far too much capital chasing the same real estate with the same business model, allowing for no true competitive edge and instead leading to cap rate compression, overleverage and increased financial risk with low going in yield hoping the market appreciates in order to make their desired return. Office and retail are in secular decline, multifamily and industrial are stable but overpriced.

A recent study by Revedy in an analysis of over $20 billion of short term rentals found that only 3-5% of the market was professionally optimized, and the study “regularly” found high cap rate opportunities with the ability to optimize by 30-40% within one year. In fact, the research found that 90% of properties are single asset owners and not professionally owned and operated. Further, the top revenue management tools such as Price Labs and Beyond estimate that only 10-35% of properties effectively use dynamic pricing and roughly 80% of listings are only on Airbnb ignoring the dozens of other high yielding channels such as Booking.com and Homes & Villas by Marriott.

These sophisticated revenue management and multichannel distribution strategies have been deployed and honed for decades in the hospitality industry and utilizing skilled revenue management is the norm amongst professional hospitality owners & operators such as ourselves.

We have multiple strategies we employ to identify and acquire assets, one of which is detailed in the base study below looking at a rental arbitrage repositioning opportunity.

It’s no surprise that the majority of investor wealth is gained in bad times. This is where the best deals happen for those who are prepared. With all the pieces in place but no meaningful STR institutional ownership yet, in a recession we can expect to see major opportunity through forced and discounted selling as many individual owners simply are not financially well heeled enough to weather a protracted downturn as are institutions and private equity funds.

While value-add repositioning and management optimization strategies add a profitability cushion to existing portfolio assets, our structure uniquely positions us to take advantage of a distressed environment by discounted buying through the cycle. Improving our investment basis through dollar cost average purchases will allow us to realize wealth building appreciation as the market recovers.

Also, unlike traditional distressed asset funds, we can invest and produce yield without waiting for the distress to happen. Furthermore, with geographic diversity, we are able to cherry pick the best locations to invest at any given moment in time.

This means we are not market timing and are more readily prepared to take advantage of market swings when the opportunity arises. Distress can open the doors to prime markets that may have been previously financially unprofitable, allowing us to build a more desirable and resilient portfolio.

Our investors own true real estate with all the benefits of owning real assets, appreciation, income, and tax depreciation benefits. Through our professionally structured platform, investors gain exposure to international assets through a streamlined, tax efficient, operationally streamlined, SEC compliant structure. All the complexities of international investment are neatly structured in a way only capable in an institutional investment fund.

International Real Estate Investment Fund

By broad measure, luxury residential real estate has outperformed most other asset classes and is an ideal way to gain international exposure. Furthermore, part of the benefit of investing in real assets for wealth preservation is the ability for real assets to transcend the banking system. You cannot replace an asset that has an internationally desirable location, and your investment is not directly exposed to currency collapse or bank failure, but you do get the benefit of diversifying away from your home currency, be it the US Dollar or otherwise, to help protect your wealth. For US investors specifically, the dollar is sitting with a relatively strong value vs an international currency bucket and with a longer term outlook of value erosion, now may be a very well timed opportunity to diversify.

Layering on our technology, our investors are afforded a level of flexibility, personalization, and opportunity previously unavailable or infeasible. With the ability to take a cash dividend, reinvest for compound growth, use dividends for an owner discounts at the properties for further value, grow dividends through simply holding them on platform, and elect your own investment term with the ability to trade even during the lockup period, the opportunities to manage each individual investment the way that best suits the specific needs of each investor are unparalleled in real estate investments. Further, you can elect a Euro or Dollar based distribution, and as we roll out our permissionless debt platform and yield strategies investors will have greater and greater ways to utilize their distributions to manage risk and enhance yield.

Personalization
Investment flexibility suits all types of investors
Dividend investor
Growth investor
Lifestyle investor
Portfolio investor
Digital native

Finally, tokenizing not only the fund investment, but also the distribution allows for digital natives to remain fully digital without needing to directly reenter the banking system.

Finally, one of the more interesting use cases that comes from the unique ability short term rentals offer is that investors are also potentially consumers, which opens the door to generating additional non-cash value through self-use.

This creates a number of beneficial ecosystem dynamics including:

Allows fund to potentially backstop economic returns with non-cash value through nightly stays, giving all investors additional downside support

Value delivered in nightly stays can then theoretically be used, or effectively sold to generate additional cash flow

Free or highly discounted nightly stays also correlate well with demand dynamics, meaning when additional value is most needed, the properties will likely have more open nights available thereby minimizing or completely avoiding guest displacement

Internal use of properties also increases demand which in turn allows us to yield manage tighter to generate higher cash flows

Over time, nightly coupon purchases through a non-ownership vacation club style program could be used to further bolster internal demand and allow the fund to lock in predictable profitability

Global Travelers

Own luxury homes across the world in places you love to visit

without the complexity and hassle of home ownership, operations and maintenance
without worrying about the legal and tax details
without taking on the cost burden alone
while diversifying your investment both geographically and averaging over time
while accessing the flexibility built into our platform
all while making an attractive income with numerous follow on platform yield opportunities and being able to use the properties any time they’re available to be rented without feeling stuck or obligated to use your properties.

Other vacation investment funds lock you into the investment with no opportunity to exit, no income (in fact some groups charge an annual fee on top of your investment), forced use (if you don’t use the property, you don’t get anything in return) and still take on all the risk of investing or worse, you don’t own anything and are simply spending money. Also, closed end funds require a sale at the end of their legal life, which means the portfolio is always in flux. With us, the portfolio has the ability to continue to grow as our fund grows.

While some investment churn is possible, the best assets will never have to exit the portfolio and investors can leave at their election subject to their chosen lock up or even before through secondary trading. Vacation club investments typically also aren’t institutionally structured with a preferred return, which is customary in private equity and serves to help insulate investor’s return.

With us, your investment pays you, and you retain all the benefits of being an owner. Use the properties only when you want, and in the meantime you can grow your wealth not just by hoping the market appreciates, but through passive income generation.

Property Market Community

Luxury Vacation Homeowners

Diversify your risk by contributing your property to our fund. Contribution in lieu of acquisition allows for attractive and creative structuring that can create a win-win for you and the fund, unlocking value for both while spreading your exposure.

Short-Term Property Managers

If any of your owners have an interest in selling or contributing a property that fits our criteria, there are opportunities to make additional income by facilitating the deal and in many cases we can engage you to continue managing the asset.

Real-Estate Professionals

Real estate brokerages and agents in target markets are local experts that can programmatically earn commissions for sourcing quality assets as we grow our portfolio.

Digital Asset Community

With the Portara Earn module, investors can engage with the global decentralized finance network, exploring a wealth of opportunities and platforms. As leaders in this innovative and rapidly expanding sector, we’ve seen growth from $0 to over $120 billion, fueled by smart contract technology on various blockchain networks.

Our technology offers investors unprecedented options and control, including:

100% Self-Custodied Assets: Maintain full control over your assets and investment decisions.

One-Click Borrowing: Enjoy borrowing with no origination or prepayment fees, and no predefined maturity date.

Yield Strategies for Extra Income: Utilize our expanding range of yield strategy options to enhance profits all from your initial investment.

Income Through Participation: Earn additional income by providing liquidity to the Portara digital ecosystem.

Novel Risk Management: Mitigate real estate exposure with investments in the digital asset sector.