Rent Distribution Flow

At Liquid Estate, rental income doesn’t just sit in a black box. Every dollar of rent collected flows transparently and efficiently — prioritizing long-term value for token holders. Every property generates rental income, which is distributed in a structured and optimized way.

Step-by-Step

1. Loan Downpayment First

If the property was financed with a bank loan, a portion of the rental income goes toward paying down the principal.

→ This reduces debt and increases the equity backing each property token — a form of leveraged yield for token holders.

2. Taxes & Compliance

We take care of all applicable taxes — property tax, income tax, and any jurisdictional fees.

→ You're never on the hook for surprise deductions or liabilities.

3. Ongoing Operations

Administrative costs, property management, legal, accounting — all paid out of rental income.

→ Keeps the engine running smoothly without external funding.

4. Future-Proofing

20% of all net rent is automatically reserved for future repairs, renovations, and capex.

→ This creates sustainability and avoids sudden cost burdens.

5. Yield Distribution

The remaining profits are streamed directly into the on-chain yield vault (ERC4626) connected to the property token.

→ Token holders can claim or compound their rewards seamlessly.