Fact Sheet

Kubera Black Technologies: Changing the Real Estate Landscape

This report provides a comprehensive and detailed breakdown of the Kubera Black Technologies real estate platform, outlining its core functions from property selection to the post-sale liquidity of tokenized assets. The report also addresses the advantages of investing in the U.S. market and how the platform makes this accessible to a global audience.

1. The Global Real Estate Market and the U.S. Advantage

The global property market, valued at over $235 trillion, is a significant asset class with inherent inefficiencies. Traditional real estate is often characterized by low liquidity, high fees (6-10% of total property value), a lack of transparency, and high barriers to entry, making it inaccessible to many investors.¹ Kubera Black Technologies aims to solve these problems by transforming real estate into a modern, liquid, and transparent asset class.

The U.S. real estate market, in particular, presents a unique and compelling opportunity for global investors. The country is currently experiencing a severe shortage of affordable housing, which has driven up home prices and rents. This creates significant opportunities for strategic investment in both residential and commercial properties. Kubera Black Technologies' platform allows anyone, anywhere on the globe, to invest in valuable U.S. real estate at any financial level and amount. This democratizes access to U.S. properties, providing global investors with the stability, potential for appreciation, and the ability to invest and receive returns in either digital or traditional currencies—a major advantage over traditional investment methods. Foreign investors can now get the value and security of U.S. real estate without facing the traditional problems of finding and operating properties from a distance, or navigating the complex legal, tax, and financial pitfalls typically associated with foreign real estate investment.

2. The Business Model: Investment Pillars

Kubera Black Technologies' strategy is built on three distinct investment pillars, each offering a unique risk and reward profile. Our in-house team uses a combination of AI software and decades of real estate expertise to find and value prime and undervalued U.S. real estate. The AI software assists our seasoned professionals by rapidly analyzing vast datasets, including historical sales, market trends, and demographic information, but the final valuation and selection are made by our experts who can interpret nuanced factors the AI cannot, such as a property's unique features, neighborhood feel, or potential for future development. We set up, manage, and oversee these properties, and then distribute a dividend to investors. These investments can be funded with stablecoins or traditional fiat currencies, providing global access from any corner of the world.

• Premier Tokenized Rental Assets: We acquire income-producing properties in strategically identified, undervalued U.S. markets. These are chosen for their potential for long-term appreciation and sustained rental income. The return for investors is a predictable and consistent passive income stream through monthly fractional ownership dividends, distributed in stablecoin via transparent smart contracts. This eliminates the hassle of property management, tenant relations, or local tax and legal compliance for a foreign investor.
• High-Potential Tokenized Development Projects: This pillar focuses on new development ventures where optimized land and construction costs create significant arbitrage opportunities against projected market values. This is a high-risk, high-reward strategy that aims for robust returns, which are distributed in stablecoin as a direct share of the substantial profits generated upon the project's completion and sale. This gives global investors access to the high-yield potential of development projects without needing to be physically present to oversee the process.
• Rigorous Strategic Hard Lending: This pillar provides meticulously structured short-term, asset-backed hard money loans, exclusively secured by undervalued real estate. We will digitize the interest in the loan portfolio. Hard money loans are known for their high interest rates (8-15% annually) and additional fees. This allows for a targeted portfolio return of 7-10% for investors. All loans are secured by a first mortgage with a conservative 50% Loan-to-Value (LTV), which provides unparalleled downside protection for investors' capital.

3. The Technology: How the Platform Works

The Kubera Black Technologies platform is a highly-scalable, fast, and secure blockchain-based property transaction platform built on a Layer 1 blockchain optimized for speed, security, and scalability.

• Phase 1: The Off-Chain Process
  1. Selection and Vetting: Our team of real estate professionals uses proprietary AI software to analyze market data and identify properties that meet our investment criteria. The AI processes millions of data points, including sales history, local demographics, and economic indicators, to provide a preliminary valuation and highlight potential opportunities. The human team then conducts in-person inspections, assesses the property's condition and unique features (e.g., curb appeal, recent renovations, neighborhood context), and uses their decades of market knowledge to make the final valuation and selection. This human-in-the-loop approach combines the speed and data-processing power of AI with the irreplaceable judgment and nuanced understanding of experienced professionals.
  2. Legal Incorporation: The property is incorporated into a Limited Liability Company (LLC) or a Decentralized Autonomous Organization (DAO). This legal entity holds the physical asset, and token holders become the owners of the LLC DAO. The LLC cannot be resold or removed, ensuring the security of the underlying asset. All legal documents are audited and can be verified on the public blockchain registry, providing foreign investors with complete transparency and an immutable record of ownership that is secure from international disputes.
• Phase 2: The On-Chain Process and Initial Investment
  1. Token Generation: The property is tokenized and fractionalized. Each individual LLC/DAO has a fixed number of tokens, which is directly correlated to that specific investment. The tokens are minted on the blockchain, creating a digital representation of the ownership shares.²
     
  2. Initial Investment: This is a fixed-price, first-come-first-serve process. Investors purchase the tokens at a price determined by our internal valuation, pegged to the underlying asset's value. This ensures the initial price is transparent and directly tied to the real-world asset. Funding for projects is accepted only through stablecoins and traditional currencies, which streamlines the payment process and eliminates the high fees and delays of traditional international wire transfers and currency conversion. Once the funding target is reached, the ownership is transferred, and the tokens are distributed to the participants.
• Liquidity and the Secondary Market
  1. Grace Period: Following the successful funding of the initial investment, a 4-month grace period is enforced. During this time, fractional ownership is fully tokenized and recorded on the blockchain, but it is not yet available for trading.
  2. Auction Network: After the 4-month grace period, the tokens are available for secondary market trading on the Kubera Black Technologies proprietary platform. A key mechanism for this liquidity is the "auction network," where tokens are traded via a peer-to-peer (P2P) system. An automated order book facilitates price discovery through competitive bidding.
  3. The Role of the Auction Network: This mechanism provides investors with unprecedented liquidity, allowing them to sell their holdings quickly without the delays and high costs of a traditional real estate sale. The price is set by the market through competitive bidding, empowering investors to enter and exit positions freely.
• Core Technology
  1. Underlying Blockchain: The platform is built on an underlying blockchain known for its safety, speed, and security. The use of a decentralized, immutable ledger ensures that all transactions are tamper-proof and transparent, creating a reliable audit trail.³
     
  2. Smart Contracts: Self-executing, tamper-resistant smart contracts automate transactions, such as the monthly distribution of rental income and profits in digital currency, eliminating the need for intermediaries and reducing the risk of human error.
  3. Global Registry: The public, open-source Propbase Registry records an immutable history of every property transaction, providing a verifiable and transparent record of ownership that is accessible to all stakeholders.

4. The Platform's Native Utility Token and Ecosystem

The platform's native utility token is central to its functionality and business model.

• Utility: This native platform token is used to facilitate all transactions and interactions with smart contracts. Fees for all transactions and registry updates are paid with this token.
• Incentives: A rewards protocol, funded by a portion of the token supply and transaction fees, is designed to incentivize new users and reward existing ones. Additionally, a staking platform allows holders of the native token to earn rewards, which helps to lock up a portion of the circulating supply and increase scarcity.

5. Conclusion

Kubera Black Technologies is a transformative force in the real estate industry, leveraging blockchain technology to create a new, more efficient, and accessible asset class. By providing a fixed-price initial investment followed by a liquid secondary market via its auction network, the platform addresses the most significant challenges of traditional real estate. It makes the lucrative U.S. market accessible to a global audience, regardless of investment size, and provides a secure and transparent environment for building a diversified real estate portfolio. This eliminates the traditional pitfalls and logistical nightmares for foreign investors, giving them the same opportunities as large investment funds and a secure way to build wealth.