> For the complete documentation index, see [llms.txt](https://usvp-token.gitbook.io/english-ver-usvp-rwa-backed-in-real-state/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://usvp-token.gitbook.io/english-ver-usvp-rwa-backed-in-real-state/usvp-rwa-backed-by-real-estate/problem-definition.md).

# Problem Definition

Definición del problema

####

1. **Prohibitive Entry Barriers**
   * **High Minimum Investment**
     * Premium properties start at $1M+.
     * Legal costs: 3-5% of the property value.
     * Due diligence expenses: 1-2%.
   * **Operational Complexity**
     * Property management.
     * Tenant handling.
     * Maintenance and repairs.
     * Regulatory compliance.
2. **Structural Illiquidity**
   * Average time to sell: 6-12 months.
   * Transaction costs: 5-8%.
   * Inability to sell partial ownership.
   * Limited buyer market.
3. **Market Inefficiencies**
   * **Asymmetric Information**
     * Lack of price transparency.
   * **Multiple Intermediaries**
     * Slow, manual processes.
4. **Geographic Limitations**
   * International legal restrictions.
   * Challenges in remote property management.
   * Language and cultural barriers.
   * Cross-border tax complexities.