Top Level Takeaways
Millions of people want to buy homes that do not exist. The housing shortage has been worsening for decades, and we are on an important mission to right-size the housing market by leveraging unique assets to build more homes more efficiently and transparently, aligning values and incentives from investors all the way through the construction supply chain:
We’ve built financial infrastructure that enables us to list new projects, raise equity contributions seamlessly (Collective) and transparently process payments to our building supply chain (Rigor).
We’ve enlisted a trusted, world-class homebuilding supply chain that has contributed to the construction of 50,000+ homes, earning $2 billion in topline revenue over its 12-year lifespan in fast-growing Central Florida, where we are focused at launch. Today, they are building at a pace of 8,000-10,000 homes per year for large and small developers alike.
Combining these construction assets together with the Collective team’s business experience across tech, construction, and private equity investing, we’ve produced a new channel to build more homes.
Here, we invite you to get familiar with the critically important supply chain that builds the homes on behalf of our investors and the future families who will live in them! It consists of businesses that I, Collective co-Founder Isaac Lidsky, founded 12 years ago.
For each of the initial projects listed on Collective, we, the Collective Founders, are both serving as the Project Sponsor and investing our personal capital. This strategic decision is meant to demonstrate unequivocally our conviction in Home Construction Collective and its important mission to tackle the housing crisis.
Why are we so confident that we can successfully plan and implement these new home construction projects? Because I’ve worked in the residential construction industry for more than twelve years now, I’ve built several businesses in the space, and as a result, we at Collective have a wealth of proprietary data and access to a world-class construction supply-chain.
The companies I co-built over the last 12 years, ODC Construction and Commence Logistics, have succeeded beyond all imaginings when my partners and I first began the journey in 2011. Since then, they’ve contributed to the construction of more than 50,000 homes, earning more than $2 billion in top-line revenue. (Today, they build at an annual pace of ~8-10 thousand homes.) More significant than the numbers, these businesses have contributed greatly to innovation in new home construction, meaning we can build quality homes at volume, more quickly and less costly.
The projects Collective has listed for investment benefit directly from our relationships with ODC Construction and Commence Logistics in at least two critical ways:
- First, we hire Commence Logistics as the general contractor, using ODC Construction to build the architectural shell of each home. There is a dozen years’ experience in world-class construction management behind each Collective investment opportunity we list, coupled with a vast, proven and trusted supply-chain to perform the work in the field.
- Second, our relationships with Commence Logistics and ODC Construction give us access to proprietary data on thousands of homes annually, so we know what to build, where and why. We map Commence Logistics homes’ cost data, for example, to public sales data, so we know which homes sell the fastest, at the greatest margins, county by county. When we design projects to list on Collective, we’re often building the same exact (or very similar) model home that has best met homebuyer demand in a given county. In short, we’re betting on the consistent winners. (Disclaimer: With new home construction, as with every speculative investment, past performance is not a guarantee of future success. Please refer to the disclaimers at collective.investments, incorporated herein by reference.)
Home Construction Collective is a unique innovation in the financing of new home construction, conceived and built by proven innovators in the construction of new homes. To launch Collective, we’re personally investing in the great promise of this synergy, listing and investing in our own projects. We invite you to join us. You can start here today!
In Part 2, you can read more about the history of Commence Logistics and ODC Construction. Check it out here!