There are many challenges that real estate developers usually face when starting a new project. Getting the necessary permits is usually a huge task, but securing affordable financing can be almost impossible. This is because the vast majority of lenders usually shy away from real estate projects that have not yet been completed due to the huge risk involved. After all, the project can stall and fail to attract any tenants, making it impossible for the borrower to service the loan. Fortunately, there are some lenders who can offer affordable and convenient financing early on in the construction project. Alex Kleyner ABK Capital offers a wide range of real estate financing options.
ABK Capital Financing Options
Alex Kleyner & his Miami, Florida team at ABK Capital now offers debt financing for real estate projects in South Florida. This is in addition to the senior debt financing offered by ABK Capital. Alex Kleyner has been financing projects in the state of Florida, mostly in Miami, for a long time. ABK Capital has the expertise and experience needed by real estate investors to prosper in the industry. The team at ABK Capital can easily appraise construction projects and quickly decide whether or not to finance the project as well as the terms and conditions.
The senior secured financing options offered by ABK Capital are fully secured as the land in question is used as collateral for the loan. It is important to note, however, that this financing is often insufficient as it cannot finance the construction project to completion. When more money is needed, developers often look for mezzanine financing. Many lenders and real estate financiers can offer similar financing, but not with the friendly terms and conditions as those offered by ABK Capital.
ABK Capital Mezzanine Financing
To qualify for this type of financing, a construction project must have started and progressed up to at least the first floor. The mezzanine floor is usually above the first floor, so only projects that have commenced and progressed successfully up to that level can be considered.
This type of financing is best suited for real estate developers who need funding, but do not wish to give away any equity in the property. It falls between senior secured real estate loans and equity financing. These loans pose a greater risk to the lender because they are not secured. The team at ABK Capital is able to assess projects to identify potentially profitable opportunities and offer sufficient mezzanine financing.
ABK Capital Offers Structured Loans
Alex Kleyner and the team understand that there is need to balance between profitability and investors’ interests. That is why they offer loans that are structured to meet the demands of different types of projects. Real estate developers who run out of cash after starting a project can apply for mezzanine financing.
Other Financing Options
In addition to senior secured lending and mezzanine financing, Alex Kleyner ABK Capital also offers equity financing. ABK capital offers flexible financing to help improve the potential of a property to generate huge profits. The main objective of ABK Capital is to get as much money as possible into the right hands for the mutual benefit of both clients and ABK Capital. This type of funding best serves the needs of commercial real estate developers.
Alex Kleyner is the co-founder of ABK Capital and also a serial entrepreneur. The computer engineering graduate has founded a number of companies that have experienced immense success. His business acumen together with a strong team can be attributed to the success of ABK Capital. The company has been opening new offices all over Florida and several other states in the country. This means that more real estate developers are going to access affordable funding more easily. While mezzanine financing may not be secured, the team at ABK Capital knows how to secure their investment while ensuring the borrower gets the best results.
