Long have individuals purchased and sold land as a form of long-term investment. Yet, with the restricted quantity of land and, by extension, structures everywhere, many governments and nations have highly severe restrictions around it. Their unit costs are relatively expensive because of scarcity and increasing demand; after all, every (also expanding) population wants a place to live and work.
KODO Assets introduces and applies tokenization to simplify the administration of all interactions with blockchain networks, such as the retrieval of token data and the operation of smart contracts. This in turn provides those interested in dipping their toes into the market a platform that mitigates some key problems discovered in the traditional real estate market.
Real Estate’s Perceivable Gap
The potential of the real estate industry is clouded by a set of peculiarities that permeate the space. From an investor’s standpoint, properties appear to have shot up in price around the globe, especially in Sao Paulo. With the existing barrier to entry, a lot of investors who wish to allocate a small fraction of their equity in a high-liquidity asset find themselves discouraged from this increasingly demanding space.
The high transaction costs and the time required to process them do not make matters any easier either. A purchase of real estate in Brazil is a formal legal transaction, which can lead to a waiting period of up to ten days. The industry requires acute sensitivity in detecting the best opportunities for one to take action, it is a meticulous process that can impede an investor’s time and money.
Through the capabilities of tokenization, KODO is able to mend the gaps that haunt the real estate sector and bring new light to those that wish to participate in this hard-to-reach industry.
KODO’s Solution: Tokenization of Real Estate
Kodo Assets was born because of the belief that tokenization is the best way to solve the biggest problems in the real estate market, such as low liquidity, high barriers to entry, high transaction costs and bureaucracy that keep many investors from getting into the real estate market.
With tokenization, sensitive information is converted into anonymous "tokens" that can be stored and used in a system behind the firewall. The tokens are pieces of information that can be exchanged for other, more important data. Data that has been tokenized cannot be deciphered or undone. For this reason, even if a tokenized environment were to be compromised, the original sensitive data would remain secure.
As the underlying asset is a low-risk investment compared to stocks or cryptocurrencies, it is reasonable to expect KODO1 tokens to have higher liquidity than those that are invested directly in real estate. Compared to the real estate market, getting into the token market is easier because the minimum investment ticket is lower and the market is open 24 hours a day, 7 days a week, all over the world.
Without the need for title transfers or property registration fees, the costs of buying and selling tokens will be lower than the costs of buying and selling real estate.
Lease Logistics Handled by KODO Team
A large multinational company is renting the property right now, and their lease will end on June 14, 2025. After deducting the IPTU and condominium fee, the lease's present value is US$ 19,979.84.
The KODO team will handle the lease logistics during the turnover. It is also important to note that the IGP-M (Brazil’s general price index) reviews this sum on the contract's anniversary and makes any necessary adjustments.
Rent Income Distributions as Dividends
Once the property is acquired, profits will be sent to people who own tokens using USDC, which is the most trusted and open stablecoin on the cryptocurrency market. KODO1 tokens will be paid back into the wallet where they were originally stored at the time of distribution. This stablecoin was chosen because a large global independent accounting firm checks it every month. Even if it's not a decentralized coin, this is a safer way to set up the asset's backing.
The rents will be paid directly to the owner of the property, Kodo FL1 Administracao de Bens Próprios Ltda, and will be taxed at a rate of 14.53%.
It is agreed that 6% of the pre-tax gross will go to the property management firm and 10% will go into a reserve fund for reasons that will become clear later. Kodo Limited, which made the tokens that represent property rights, will get dividends equal to the amount left over after discounts (VRD) are taken out. Lastly, Kodo Limited will be in charge of dividing the money made from the sale of tokens between the investors who bought them.
A Strong Project with A Strong Team
KODO Assets is backed by a passionate team of experts in the business and Blockchain field. The CEO, Ciro Iamamura, holds a bachelor’s degree in Production Engineering and Financial Management as well as a degree in Civil Engineering. An aspiring lawyer, Iamamura plays a strong role in the consolidation of KODO, with ample experience to lead the company to new heights.
His impressive feat is closely followed by KODO’s CTO, Andre Daher, who holds a degree in computer engineering from USP. An engineer familiar with all things web development and cloud-based applications, Daher is also an expert in blockchain technology, having familiarized himself with asset tokenization initiatives, digital wallets, and Web 3.0 applications.
The two form the backbone of KODO with their extensive entrepreneurial experiences, promising a sturdy solution for the future of tokenized real estate.
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