The Crays Fund Ecosystem

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.

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