Rigor, a new decentralized finance app for building homes, to solve the “affordability crisis” plaguing housing markets

ORLANDOFlorida and MIAMI, 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” beta program in Central Florida with a supply chain of lenders and home builders eager to modernize this vital industry and increase production. Built on the Ethereum blockchain, Rigor is an easy-to-use app that decentralizes new home construction lending and provides the entire supply chain with web-based tools that coordinate real-time capital flows with logistics. of construction on the ground, a technical challenge. particularly suitable for a blockchain solution. With Rigor, home construction loans are digital assets.

By some estimates, the United States faces a housing shortage of up to six million homes, the result of decades of underconstruction. Housing starts as a share of the population have declined dramatically since 1970, falling 39% since 2006 alone. As a result, more people than ever are locked out of homeownership as house prices rise 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 on the risks endemic to the homebuilding industry’s notoriously opaque supply chain. In the United States, only three percent of all real estate 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’ plaguing homeownership is a lending crisis,” said Isaac Lidsky, founder and CEO of Rigor. “The scale of investment is simply inadequate – and that’s understandable when you look at the realities of a fragmented, uncoordinated and inefficient supply chain plagued by misaligned incentives. Rigor’s audacious goal at launch is to end this decades-long crisis so that more homes can be built for people.”

By leveraging the latest technologies in decentralized finance (moving away from traditional bank finance models) and coordination, Rigor harmonizes the entire residential construction supply chain, revitalizing the asset class. Rigor combines transparent loan flows with on-the-ground workflow and payment management, minimizing risk for lenders and increasing productivity for homebuilders – all areas important to investor confidence. With Rigor, lenders pool their capital in a digital asset, find and finance quality residential construction projects, gain transparency on their projects’ loan flows, and are repaid digitally. Homebuilders manage funds with detailed job-level budgets that are updated and disbursed in real time to their supply chain as work is completed.

Rigor has inaugurated its first six houses, as part of its inaugural “100 Houses” beta. The application is used to find loans and coordinate the construction of these houses in Central Florida. A supply chain of beta partners including lenders, home builders, contractors and subcontractors put the app to work.

“Home construction lenders face a variety of risks,” said John Starra private investor in Central Florida which lends through Rigor as part of its beta. “The homebuilder community is large and fragmented, making it difficult to aggregate large-scale investments. Once capital is deployed, lenders like me are limited in our understanding of project progress, reasons for delays , and who to trust and work with. . Expensive manual checks and controls on loan streams are the only way to track and they ultimately limit growth. Rigor will change all that. I am excited about the access to the flow of transactions, as well as by the financial controls and the transparency that I benefit from the application.”

The Rigor team finds that the cumbersome controls of the traditional loan and administration model slow down work and payments. Contractors, subcontractors, and suppliers are often forced to delay completing projects — or abandon them altogether — in favor of working on projects that have the potential to be written off and delivered sooner. This dynamic only adds to lending risk and a culture of mistrust throughout the supply chain.

“From where I’m standing, you wouldn’t know there was such a demand for homes given the relentless challenges builders face in obtaining and managing construction loans,” said DK Kim, builder of houses and operating partner of FL Pro Brokers in Orlando, who participates in the beta of Rigor and is an investor in the company. “We build about 80 homes a year, have a great balance sheet, and have built a strong reputation for quality homes that sell. Our biggest constraint to growth is scaling up sources of capital – and we’re not not the only ones. Rigor gives me the tools I need to expand my lending partnerships and streamline my operations into one app so I can build more homes.”

In today’s environment, once capital is committed by a lender, the existing payment dynamics on the ground lead to friction, inefficiency, and misalignment throughout the supply chain. According to a recent business survey, 80% of construction professionals say they spend a lot of their time seeking payments for completed work, with 50% getting paid within 30 days of invoicing and 43% getting paid within 31-60 days. days following invoicing. Some vendors and companies say they are “rarely or never paid” in full for their work.

According to Brian MontgomeryPresident of Commence Logistics, a Central Florida contractor (who also uses the Rigor app as part of its beta), “We all have to fund our running costs to keep the lights on, and that hurts. It increases the cost of construction and creates a culture of resentment and mistrust. With Rigor, the work is checked and there is no ambiguity about what has been completed. Rigor solves the fundamental problems that prevent us from building more houses faster.

“We seek to increase investment opportunities in home construction by creating a new digital asset class accessible to both traditional lenders and new investors in digital assets,” said Erich Wassermann, founder of Rigor and president of business development. “The homebuilding industry can expect significant value recovery, making the home market more profitable for invested capital and producers, while ultimately reducing the cost to homebuyers.”

EVENT NOTE: Rigor will be present and speak at the Miami Crypto Experience at the James L. Knight Center in Miami November 11, 2021. The team will share a preview of Rigor, provide updates on the construction of “100 houses” to Central Floridaand detail the investment opportunity for participants.

About Rigor
Rigor is a decentralized finance (“DeFi”) platform for building homes. The company built and deployed the Rigor app, which is now being used to build the first “100 Homes” beta in Central Florida. The company recently raised nearly $2 million seed funding from private investors to fund initial growth strategies, and welcomes additional investors. Current strategic investors span the existing and new home construction ecosystem and include crypto-native asset funds, traditional home construction lenders, home builders, contractors and sub-contractors. Rigor Founders Include CEO Isaac Lidskya serial entrepreneur in technology and home building, New York Times best-selling author and former Clerk of the Supreme Court; Erich Wassermann, founder of advertising technology success story MediaMath; and Web3 technologist and product manager Jonah Weinstein.

To get involved and learn more, please visit: www.rigor.build and follow on Twitter: @Rigor_HQ

CONTACT

Greg Peverill-Conti
RP for Rigor
[email protected]
508-878-4103

SOURCE Rigor

Related links

http://rigor.build