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.
Global Travelers
Own luxury homes across the world in places you love to visit
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without the complexity and hassle of home ownership, operations and maintenance
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without worrying about the legal and tax details
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without taking on the cost burden alone
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while diversifying your investment both geographically and averaging over time
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while accessing the flexibility built into our platform
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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.