Reigo Investments, which has developed a platform for the residential real estate debt market, announced the closing of a $13 million Series A funding round led by Caesarea Medical Inc. Reigo also announced the closing of a $100 million securitization of residential bridging loans led by Cantor Fitzgerald. The transaction marks the company’s second securitization completed since June 2021, reaching a total of $200 million.
Riego is an investment manager focused on the real estate bridging loan market. Its platform uses AI in the underwriting process to enable fast and safe investment decisions within 24 hours. Reigo partners with private real estate lenders in the United States to purchase and participate in residential real estate investment loans offered by the lenders. Since 2019, the company has participated in more than 850 loans.
According to a recent study by Realtor.com, the United States is now short of 5.24 million homes. However, despite the housing market expected to remain highly competitive for buyers in 2022 amid tight supply, the mortgage industry is expecting lower trading gains. To keep lenders competitive, the need for flexible lending options has been a major driver of the success of Reigo’s platform.
“The way real estate underwriting is done hasn’t been updated in years and is based on a limited number of parameters managed in old Excel spreadsheets,” said Yariv Omer, CEO and co-founder of Reigo. Investments. “The lending community has realized these archaic systems are not capable of allowing them to reach their full potential. With our AI-powered platform, we strive to help lenders avoid non-performing loans, to make faster investment decisions and create ultra-diversified portfolios across the United States to set apart among their borrowers.