Lenders and homebuilders lay the foundation for ‘100 Homes’ in Central Florida using syndication, digital payments, and workflow coordination software
Orlandoand Florida MiamiAnd November 10, 2021 /PRNewswire/ — Rigor, a new DeFi app designed to end the long-running “affordability crisis” plaguing housing markets, today launched its “100 Homes” pilot program in Central Florida With a supply chain of lenders and home builders keen to modernize this dynamic industry and increase production. Built on the Ethereum blockchain, Rigor is an easy-to-use application that decentralizes lending to building a new home and provides the entire supply chain with web tools that coordinate real-time capital flows with on-the-ground construction logistics, a technical challenge uniquely suited to a blockchain solution. . With Rigor, home building loans are digital assets.
By some estimates, the United States faces a housing shortage of up to six million homes, as a result of decades of construction shortages. The number of housing starts as a proportion of the population has fallen dramatically since 1970, down 39% since 2006 alone. As a result, more people are being excluded from home ownership than ever before because home prices are rising faster than wages in 80% of US metro areas. Rigor’s founders argue that the lack of growth is primarily due to investors’ reluctance to take risks endemic to the home construction industry’s opaque supply chain. In the United States, only three percent of mortgage financing supports the construction of new homes. Rigor’s management team has over a decade of experience in Florida home building market.
“The affordability crisis that has plagued home ownership is a lending crisis,” he said. Isaac Lidsky, founder and CEO of Rigor. “The scale of the investment is simply not enough – which is understandable when you look at the realities of a supply chain that is fragmented, uncoordinated, inefficient and riddled with uncoordinated incentives. Rigor’s bold goal at launch is to end this decades-old crisis so that more homes can be built for people.”
By leveraging the latest technologies in decentralized finance (moving away from traditional bank financing models) and orchestration techniques, Rigor coordinates the entire homebuilding supply chain, revitalizing the asset class. Rigorous pairs transparent lending flows with on-the-ground workflow and payments management, reducing risk for lenders and increasing productivity for homebuilders – all important areas of investor confidence. With Rigor, lenders pool capital in a digital asset, find and finance high-quality home construction projects, gain transparency in their project lending flows, and get paid digitally. Home builders manage money with detailed task-level budgets that are updated and pushed in real time to their supply chain when work is complete.
Rigor has launched the groundbreaking for her first six homes, and is part of the opening of the “100 Homes” beta. The application is used to obtain loans and coordinate the construction of these houses in Central Florida. The supply chain of BETA partners including lenders, home builders, contractors and subcontractors is putting the application to work.
“Home construction lenders face a variety of risks,” he said. john starr, a private investor in Central Florida Which lends through Rigor as part of the beta. “The home builder community is vast and fragmented, and this makes it difficult to pool investment on a large scale. Once the capital is deployed, lenders like myself are limited in our understanding of how projects progress, why delays occur, and who to trust and work with. Manual and costly controls and oversight of lending flows. It’s the only way to continue and it ultimately restrains growth. Rigor will change all that. I’m excited to get to the deal flow, financial controls and transparency you gave me the implementation.”
Rigor’s team believes that cumbersome controls in the traditional lending and management model slow down business and payments. Contractors, subcontractors, and vendors often have to delay completing projects – or abandon them altogether – in favor of working on projects that have the potential to pay off and deliver sooner. This dynamic only adds to the lending risk, and the culture of mistrust across the supply chain.
said DK Kim, home builder and operating partner of FL Pro Brokers in Orlando, a participant in the beta version of Rigor and an investor in the company. “We build around 80 homes a year, have a proven track record, and have built a solid reputation for quality homes that sell. Our biggest obstacle to growth is scaling up our sources of capital — and we’re not alone. Rigor gives me the tools I need to expand my lending partnerships and streamline my operations. In one app so I can build more homes.”
In the current environment, once the lender commits the principal, the payment dynamics on the current ground lead to friction, inefficiency, and misalignment across the supply chain. According to a recent business survey, 80% of construction professionals said they spend a significant amount of their time chasing payments for completed work, with 50% being paid within 30 days of billing, and 43% paying within 31-60 days of billing. Some sellers and companies report that they “rarely or never get paid in full” for their work.
according to Brian Montgomery, President of Commence Logistics, A Central Florida Contractor (who is also using the Rigor app as part of their beta), “We all need to fund our operating costs to keep the lights on, and that hurts. It adds to the cost of construction, and it creates a culture of resentment and distrust. With Rigor, the work is verified. And there is no ambiguity about what has been accomplished. Rigor is solving the fundamental problems that prevent us from building more homes faster.”
“We seek to increase the opportunity for investment in home construction by creating a new digital asset class that can be accessed by both traditional lenders and new digital asset investors,” he said. Eric WassermanRigor’s founder and head of business development. “The home building industry can expect significant value recovery, making the home market more profitable for invested capital and producers, while ultimately reducing costs for home buyers.”
Event Note: Rigor will attend and speak at Miami Crypto Experience At the James L. Knight Center in Miami On November 11, 2021. The team will share an overview of Rigor, and provide updates on the creation of “100 Homes” at Central Florida, Details of the investment opportunity to attend.
about rigor Rigor is a decentralized finance (“DeFi”) platform for home construction. The company has built and published the Rigor app, which is now being used to build the first beta version of “100 Homes”. Central Florida. The company recently raised nearly $2M Seed funding from private investors to fund initial growth strategies, and additional investors are welcome. Existing strategic investors spanning the existing and new home building ecosystem include native crypto-asset funds, traditional homebuilding lenders, home builders, contractors, and subcontractors. Among the founders of Rigor CEO Isaac Lidsky, a technology entrepreneur and home builder, The New York Times best-selling writer, and former Supreme Court clerk; Eric Wasserman, founder of ad technology success story MediaMath; Web3 Technologist and Product Leader Jonah Weinstein.
To participate and learn more, please visit: www.rigor.build Follow on Twitter: @Rigor_HQ