Kataba

According to recent studies, a large majority of first-time homebuyers in the United States regret their purchase, with the most common regret being that the home required more maintenance than expected. Despite this, 77% of millennials still view homeownership as a part of the American Dream, though 96% express concerns about the costs associated with it. Specifically, 43% worry about paying for major repairs, 41% are concerned about hidden costs, and 32% fear their home's value will decrease.

Unfortunately, people with fewer resources, who are often younger and people of color, are disproportionately affected by housing disrepair, as maintenance costs are often too expensive. 

Although all homes need repair over time, disrepair disproportionately affects people with the fewest resources because maintenance is expensive.

Unexpected expenses, which can result from a lack of transparency in the condition of the home, trigger nearly two-thirds of all mortgage defaults, surpassing other issues such as job loss, illness, and paying other debts, according to a recent study by the United States FDIC. 

Underserved borrowers are often left unaware of the condition of the home they are purchasing, leading to unforeseen and costly repairs that can be especially burdensome for those with limited financial resources. Discriminatory lending practices can also lead to underserved borrowers being steered into subprime loans or charged higher interest rates, making it harder to keep up with mortgage payments and repairs.

Moreover, the lack of transparency can create a cycle of disinvestment in historically excluded neighborhoods. Buyers may be hesitant to invest in these areas due to a lack of information about the condition of homes, causing property values to decline and making it harder for homeowners to sell or refinance their homes.

Given these concerns, it is vital that people, especially those from marginalized communities, have access to transparent information about the condition of the homes they own or are considering purchasing.

Kataba utilizes blockchain technology to simplify and bring transparency to the buying and selling of real estate. Our platform provides secure, digital contracts with all necessary legal and property information, streamlining the process and empowering informed decisions. We also offer access to funding through our credit approval system, mitigating bias against applicants and allowing for smaller investors to participate through tokenization.

In addition, our marketplace features LejaBlox, a digital ledger that provides property records, including titles, deeds, repair history, warranties, and maintenance plans. This allows buyers to verify a property's condition before making an offer and serves as legal protection for all parties involved.

Homeowners can also subscribe to Kataba Pay for future upkeep records, which automatically update the LejaBlox, providing valuable information for investors. When it's time to sell, homeowners can re-enter the marketplace to list and sell their property.

Kataba offers comprehensive solutions for every stage of homeownership, making the real estate process faster, transparent, and more efficient.

Here is a link explaining Kataba in detail.

Kataba's solution is designed to serve individuals and communities looking to buy, sell, and maintain real estate properties. Our platform is particularly beneficial to those who are currently underserved by the traditional real estate industry, including first-time homebuyers, individuals with limited financial resources, and historically excluded communities.

For first-time homebuyers, navigating the complex and often opaque process of buying a home can be overwhelming and intimidating. Kataba's platform simplifies this process by providing access to secure digital contracts that include all necessary legal information and details about a property's condition. This streamlines the process and gives buyers the confidence they need to make informed decisions.

Individuals with limited financial resources often face barriers when it comes to obtaining funding for property purchases. Kataba's modern credit approval system helps to mitigate bias against applicants, providing access to funding for property purchases. This allows borrowers to shop for homes that are within their means using funds borrowed from a securities pool funded by lenders who have purchased our Adaptable Securities Token (KATA). This allows smaller investors to participate in the real estate market through tokenization.

Historically excluded communities often face discriminatory lending practices that make it more difficult for them to obtain financing for property purchases. Kataba's platform provides access to funding and information about the health of homes in these areas, giving buyers the confidence they need to invest and improve the overall health of these neighborhoods.

Overall, Kataba's solution serves individuals and communities looking to buy, sell, and maintain real estate properties. We aim to directly and meaningfully improve the lives of those who are currently underserved by the traditional real estate industry, providing access to information, funding, and a streamlined process that makes the home buying and selling experience more transparent and accessible to all.

The colonial house was a stunning 125-year-old brick property located in an up-and-coming area, the Key Coalition neighborhood in Midtown Kansas City. The newly renovated home had updated electrical, new plumbing, renovated kitchen, fresh paint, brand new HVAC, and a roof. My family was drawn to the home's natural light and old-fashioned charm, so we made an offer that the seller surprisingly accepted. We then underwent a home inspection, which revealed some issues that we were able to use to negotiate the final price.

Although the HUD Consultant reported no issues, two weeks after closing, we experienced a small leak in the bathroom that quickly escalated into a bigger problem. It turned out that a minor crack in the cast iron plumbing was not properly repaired, causing water to leak from the attic bathroom toilet. 

The cost to fix the issue was $2500.00. In addition, the PEX pipes installed without proper insulation froze and burst during the winter, costing us another $1500.00 to replace them. We also discovered a bat infestation in the attic roofline and rotten fascia that the seller did not pay to replace, costing us another $700.00. Furthermore, we found out that the upgraded electrical work was not done to code, and we had to spend $2100.00 on repairs.

Within the first four months of owning this home, we found ourselves under more than $10,000.00 of debt and spent cash reserve. 

Unfortunately, our experience was not unique, as we learned from interviewing 100 other first-time homeowners and investors who had similar experiences with purchasing so-called "lemon houses."

We know firsthand the pain and frustration of buying a property that comes with hidden costs and endless repairs. It's been a nightmare that we're currently living through, but it's also what gave birth to the Kataba platform. We're not just a group of people who came up with an idea; we're individuals who have experienced the hardship of owning a property that turned out to be a financial burden. 

We're passionate about making sure that no one has to go through what we went through, and that's why we're confident in our ability to deliver this solution. We've lived it, and we know how to fix it.

We have a built prototype that is mostly functional as it relates to our record-keeping aspect. We have a list of beta testers signed up. By the time this application is reviewed, we will have a small number of users.

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Like many startup ventures, securing funding is crucial to our success. However, beyond financial support, we are seeking assistance in amplifying our message about the significance of equitable outcomes in the realm of real estate. As a bootstrapped company with limited resources and skills, we are in need of help connecting with blockchain developers to join our team. We are currently building a blockchain-based solution and require the expertise of a skilled developer or blockchain architect to ensure full compliance, ethical practices, and responsible development. Additionally, media coverage would be immensely helpful in spreading awareness and conveying our story to a wider audience.

Carfax revolutionized the auto industry by providing a platform that allows buyers to access the history report of a vehicle they are interested in purchasing. Before Carfax, buyers had limited information about a car's history and could be easily misled by sellers.

In the U.S., home seller disclosure laws require homeowners to disclose any known defects or issues with their property to potential buyers. However, unfortunately, many sellers still choose to lie or omit information about known problems in order to make their homes seem more attractive to buyers. This can result in buyers unknowingly purchasing a property with serious issues, such as a leaky roof or faulty electrical wiring, which can lead to costly repairs and even safety hazards.

The enforcement of seller disclosures as part of closing documents depends on state laws. Additionally, the language "to the best of my knowledge..." in the seller disclosure statement creates a legal loophole. However, Kataba's LejaBlox, a digital ledger that displays a property's records including titles, deeds, and maintenance plans, provides legal protection and accountability for all parties. 

By using blockchain technology, Kataba's innovation offers transparency in real estate transactions, motivating people to take better care of their homes and be honest about their condition. Kataba's certification of a property can increase its value compared to non-certified ones. Similar to how Carfax changed the auto industry by providing vehicle history reports, Kataba can change the real estate market by emphasizing transparency and accountability.

One-Year Impact Goals

1. Increase access to affordable housing: Kataba could aim to make home-buying more accessible and affordable for a wider range of people. This could be achieved by expanding the credit approval system and providing more funding for property purchases.

2. Improve transparency in the real estate industry: The Kataba platform already offers transparency in the form of digital contracts and LejaBlox, but the company could further increase transparency by incentivizing home sellers to be more honest in their disclosures. For example, Kataba could offer discounts on transaction fees for sellers who provide accurate and comprehensive disclosures.

3. Encourage sustainable homeownership: Kataba could aim to encourage homeowners to take better care of their properties by offering incentives such as lower interest rates or discounts on maintenance services to homeowners who participate in Kataba Pay. This could help create a culture of sustainable homeownership. 

To achieve these impact goals, Zanago will focus on expanding its customer base and increasing awareness of its platform. This will be achieved through targeted marketing and partnerships with real estate agents and brokers.

Five-Year Impact Goals

1. Increased Access to Homeownership: Kataba could aim to increase access to homeownership for marginalized communities by leveraging its blockchain technology to create more transparent and equitable real estate transactions. This could be achieved through partnerships with affordable housing organizations, financial institutions, and government agencies.

2. Improved Environmental Sustainability: Kataba could work towards improving environmental sustainability in the real estate industry by incentivizing property owners to invest in energy-efficient upgrades and renewable energy systems. This could be achieved through partnerships with environmental organizations and government agencies that offer incentives for green upgrades.

3. Enhanced Economic Mobility: Kataba could focus on enhancing economic mobility for underserved communities by leveraging its blockchain technology to create new opportunities for small-scale real estate investors. This could be achieved through partnerships with community development financial institutions and investment funds that focus on supporting small-scale investors or simply tokenization of the liquidity pool (properties).

4. Increased Transparency and Accountability: Kataba could work towards increasing transparency and accountability in the real estate industry by expanding its platform to include additional features such as public property records, data on property ownership, and details on the sale of properties. This could help to prevent fraud, reduce corruption, and increase trust in the industry.

5. Improved Disaster Resilience: Kataba could aim to improve disaster resilience in the real estate industry by leveraging its blockchain technology to create a more accurate and up-to-date picture of the state of a property. This could help homeowners and investors to better prepare for natural disasters and other emergencies and could be achieved through partnerships with disaster relief organizations and government agencies.

Zanago plans to achieve this through a multi-faceted approach that includes expanding the use of its platform among home buyers, sellers, and investors, as well as collaborating with industry partners to promote transparency and ethical practices in the real estate market.

At this point, it's challenging to provide a specific answer to this question. Nevertheless, Kataba is exploring several ways to track its progress toward achieving its impact goals. These methods may include monitoring the number of properties registered on the platform, completed transactions, buyer funding, and Kataba Certified homes. Furthermore, Kataba may gather feedback from its users to assess the effectiveness of the platform in simplifying the real estate process and delivering transparency to all stakeholders involved.

To measure our impact goals and social impact, we will use existing data from reliable sources such as the Census, National Association of Realtors, and FDIC as a benchmark. We will compare the number of historically excluded individuals who have gained homeownership through Kataba with the overall number of successful homeownership achieved through our platform.

Kataba is driven by a theory of change that centers on the idea that increasing transparency and accessibility in the real estate market can create more equitable opportunities for historically excluded populations to enter homeownership. Kataba aims to achieve this goal by using blockchain technology to create an immutable, secure, and transparent digital ledger of a property's records. This can increase transparency, streamline the home buying process, and reduce the risk of fraud and misrepresentation.

The immediate outputs of Kataba's solution include the creation of a digital platform for real estate transactions that allows for easy access to property records and other important information. By providing buyers with a secure and transparent way to verify the health of a property before making an offer, Kataba can reduce the risk of costly repairs or unexpected expenses after purchase.

In the long run, Kataba expects to increase homeownership rates among historically excluded populations by reducing barriers to entry and increasing transparency in the home-buying process. By providing a secure and transparent way to verify property records, Kataba aims to increase trust in the real estate market and create more equitable opportunities for all.

The significant disparity in homeownership rates between different racial and ethnic groups is a critical issue that Kataba seeks to address. Recent data from the U.S. Census Bureau reveals that the homeownership rate for white households in the United States was 74.5% in 2020, while the rate for Black households was only 44.1% and the rate for Hispanic households was 49.4%. This disparity has existed for decades and has contributed to significant wealth gaps between different racial and ethnic groups.

The adoption of digitization in the financial services industry has significantly improved processing capabilities, providing better consumer services and insights. However, despite these advancements, historically excluded people still face barriers to entry in the real estate market. This is where blockchain technology comes in.

By using blockchain technology, platforms like Kataba can create a more transparent and equitable real estate market. The immutable and decentralized nature of blockchain ensures that all parties involved in a real estate transaction are held accountable and can trust the authenticity of the data provided. This increased transparency can help historically excluded people feel more confident in entering the real estate market.

Moreover, Kataba's use of blockchain technology enables the creation of smart contracts that can automate certain aspects of the real estate transaction process, making it more efficient and cost-effective. This can help reduce the financial burden on historically excluded people and provide more equitable opportunities for them to enter the real estate market.

Overall, the adoption of blockchain technology in the real estate industry has the potential to create more equitable opportunities for historically excluded people. By increasing transparency, reducing costs, and automating certain aspects of the transaction process, platforms like Kataba can help level the playing field and provide access to the benefits of homeownership for more people.

Artificial intelligence (AI) and blockchain technology are two of the most transformative innovations in recent years, and their convergence has the potential to revolutionize various industries. One such industry is real estate, where the integration of AI and blockchain could offer numerous benefits to homebuyers and owners. Zanago is at the forefront of this convergence with Kataba, and its innovative solution aims to provide a more transparent, efficient, and equitable real estate market.

AI is a powerful technology that enables machines to learn from data and improve their performance without explicit programming. In real estate, AI can be used to analyze vast amounts of data, such as property prices, local demographics, and market trends, to provide insights and recommendations to homebuyers and owners. For example, AI can analyze a home's energy consumption and provide suggestions on how to reduce energy bills or identify potential maintenance issues before they become costly problems.

On the other hand, blockchain technology is a decentralized, immutable, and transparent digital ledger that records transactions in a secure and transparent way. In real estate, blockchain can be used to create a digital record of a property's ownership, history, and other relevant information. This can help reduce fraud, streamline the home buying process, and increase transparency, which can be especially beneficial for historically excluded populations.

When AI and blockchain are combined, they can create a powerful solution that offers numerous benefits to homebuyers and owners. For instance, AI algorithms can analyze data from blockchain-based property records to provide personalized recommendations to homebuyers based on their preferences and financial situation. This can help homebuyers find properties that meet their unique needs and budget, making the home-buying process less overwhelming and more accessible.

Additionally, AI and blockchain can work together to reduce fraud and increase transparency in the real estate market. Blockchain-based property records can provide an immutable and transparent record of a property's ownership and history, which can help prevent fraudulent activities like title fraud or double-selling. AI algorithms can analyze this data to identify potential red flags and alert homebuyers and owners to potential issues.

Kataba is a prime example of how AI and blockchain can work together to revolutionize the real estate industry. The solution uses blockchain to create an immutable and transparent digital record of a property's ownership, history, and other relevant information. AI algorithms then analyze this information to provide personalized recommendations to homebuyers, reduce fraud, and increase transparency.

By leveraging AI and blockchain, Kataba is creating a more transparent, efficient, and equitable real estate market. Their solution can reduce the financial burden on historically excluded populations and provide more equitable opportunities for them to enter the real estate market. Additionally, Kataba's use of smart contracts can automate certain aspects of the real estate transaction process, making it more efficient and cost-effective.

At Zanago, diversity, equity, and inclusivity are at the very heart of our work. We don't just pay lip service to these values; they are ingrained in our very being.

Our mission is to create cutting-edge solutions that are grounded in ethics, inclusivity, and sustainability. We are passionate about building a future where equity is the norm, and we are fully committed to driving towards this future through our innovative technologies.

As two Black founders who hail from underserved Midwestern communities, we intimately understand what it means to be historically excluded. Having grown up in a city that epitomizes the systemic issues of oppression, disparities, and various forms of "isms" that are pervasive in the United States, we have made a solemn pledge to leverage our expertise as designers, engineers, and researchers to create a social impact enterprise that harnesses technology to tackle the numerous challenges affecting not only our local community but also our global neighbors.

We are deeply devoted to establishing a company culture where diversity, equity, and inclusivity are not just buzzwords, but are values that permeate everything we do and embody who we are. To this end, we have developed a framework that governs how we approach our work. We continually study cross-cultural psychology, inclusive design, and responsible innovation to create internal systems and processes that challenge the status quo in technology development, and company culture. 

Our belief is that culture starts with the founders. Even with only two employees, we have begun documenting our company culture values, ethos, and frameworks that will guide Zanago's growth into a technology, social impact powerhouse that reflects the diverse world in which we live.

Following the Business Model Canvas

Key Partners:

• Developers to build and maintain the Kataba platform
• Real estate agencies and agents to market and promote the platform
• Financial institutions to provide funding options to users (Note: This may be approached in a decentralized manner)
• Data providers to gather information on property listings

Key Activities:

• Building and maintaining the Kataba platform
• Partnering with real estate agencies and agents to increase platform visibility
• Securing partnerships with financial institutions to provide funding options to users
• Gathering and analyzing data to improve the platform

Key Resources:

• Skilled developers
• Robust real estate network
• Access to financial institutions
• Comprehensive data gathering and analysis tools

Value Proposition:

• Kataba provides an efficient and user-friendly platform for buying, selling, and financing real estate properties
• Offers access to funding options and comprehensive data analysis tools
• Provides a seamless and transparent transaction process for all parties involved

Customer Segments:

• Homebuyers and sellers
• Real estate agents and agencies
• Financial institutions

Customer Relationships:

• Providing excellent customer service  and transparency through the platform
• Ongoing communication with customers to improve the user experience
• Regular updates and new feature releases

Channels:

• Website and mobile app
• Real estate agency and agent partnerships
• Social media and digital marketing campaigns

Cost Structure:

• Development and maintenance costs for the platform
• Marketing and advertising costs
• Employee salaries and benefits
• Legal and regulatory compliance costs

Revenue Streams:

• Commission fees from real estate transactions
• Subscription fees for access to premium features
• Report fee for LejaBlox for expanded access to property records

Overall, Kataba aims to provide a comprehensive and innovative platform for shopping, buying, selling, and upkeep of real estate properties. By offering a deeper level of transparency, access to funding options and data analysis tools, Kataba is poised to disrupt the traditional real estate industry and provide a seamless and transparent experience for all parties involved.

To ensure long-term financial sustainability, we have devised a multi-pronged approach for funding the development of Kataba. Firstly, we will continue to bootstrap the business to provide a strong foundation for growth. Additionally, we will seek out grants and participate in pitch competitions to secure funding. Finally, we will leverage the earnings from our HXD Studio™ services, where we focus on helping medium to large-size enterprises authentically connect with diverse audiences and improve their business through the application of Human Experience Design. This strategy allows us to fund the development of Kataba while also providing valuable services to our clients and contributing to the growth of our overall business.

Our consulting business serves as our primary revenue stream. Additionally, one of our founders is a sought-after public speaker, sharing insights on inclusive design, responsible innovation, and human experience design. While we have managed to bootstrap our entire operation thus far, we are proud to have received small grant awards from Kava and the Harvard African American Student Union Pitch competition to help support our mission.