The young entrepreneur Alex Kleyner of Miami is showcasing that Dade County can be a hotbed for future startups. ABK Capital is a real estate debt financing and advisory company that helps agencies and investors raise capital for their projects. It also develops sustainable business strategies for its clients not only in Miami, Florida but also in parts of Broward, Palm Beach, and Ulis, Florida.
It was founded by Alex Kleyner back in 2014 to solve a massive funding problem. After the 2008 downturn, property developers had a hard time securing loans because of tighter regulations and higher standards. ABK Capital served as the intermediary to increase the success rate for approvals and get businesses going again. The company has since assisted in many real estate projects that have benefited South Florida. It is continuing to thrive today in a low rate lending environment.
There are four factors that drive the real estate market: demographics, economy, government policies, and interest rates. Demographics refers to vital information about the buyers which changes slightly year after year. Over time, trends emerge that show where the market is headed in the long run. Real estate developers are always interested in the latest statistics about the population in their areas of operation. They want to know the current age distribution, the average income, and the preferences of the buyers. They want to see what kinds of homes are selling well, which neighborhoods are attracting the most attention, and how much homes are usually selling for.
The economy's impact on real estate was on full display during the credit crisis in 2008. Its aftermath left many homeless and in dire financial straits. Those who have been in the industry for a while will know that the economy operates in cycles of boom and bust. The best investors are able to protect themselves from the lows and make the most of the highs. As ABK Capital has shown, it is possible to finance projects even in less than ideal situations. It is all about finding opportunities where they exist and crafting strategies to maximize them.
The government is a massive entity that exerts enormous influence on every industry. Even in a free economy, businesses need to adhere to government policies in order to continue with their operations unimpeded. Legislators can pass laws that are beneficial for some parties and detrimental to others. Local councils can provide tax incentives to attract businesses in a bid to boost economic activity and job creation in their jurisdiction. States can offer subsidies and other perks to home buyers that meet certain criteria. This, in turn, can drive up the demand for homes and encourage developers to make more houses.
Lastly, we have to consider the interest rates on loans. The rates have been low for several years now in a bid to keep the economy growing. When it is considered cheap to borrow money, people and businesses will try to get loans sooner rather than later. Individuals will be more emboldened to purchase a home. Companies will want to finance their real estate projects right away. ABK Capital has been helping more clients than ever to raise the funds they need for items in their pipeline. These could be construction, mergers, acquisitions, improvements, and so on. Anything that can move the business forward is worth the investment.
ABK Capital has been able to build strong relationships with lending and financing institutions over the years. They use these to find the most suitable solutions to any situation that they come across. Most of the projects that they have been involved in are located in the Miami metropolitan area including Palm Beach, the City of Miami, Broward, and Miami-Dade counties. They also have footprints at the southern region of the state including Boynton Beach, Sunset Isles, Fort Lauderdale, Pompano Beach, and more. The company has amassed a wide range of clients from developers to lenders. They deal with private equity funds, family-owned businesses, and REITs as well.
According to Alex Kleyner who’s expanding operations in Miami, ABK Capital has been able to do all of these thanks to the talent inside the company. Its core team is composed of industry experts who have been in the business for a long time. Over the years, they have developed an intuitive understanding of investment strategies, real estate finance, taxation, and accounting. They know how to study various financing solutions and their implications. They can conduct thorough research and analysis for every project from all angles. Thus, the company is able to formulate effective strategies to ensure sustainable cash flow for these projects.
This is what separates a local company like ABK Capital from other national lending and debt companies. It is able to deliver end-to-end solutions with a holistic perspective. After all, securing the seed funding is only the beginning. The business still has to run well and become profitable for the venture to succeed. It is vital to find areas where cost can be reduced and controls can be tightened. Cash flow modeling can also help in forecasting the sources and uses of cash. Everything can be planned ahead to deal with all of the known variables. This leads to a more efficient utilization of this limited resource.
ABK Capital does not just help clients get their projects off the ground with funding. It wants to clear the path towards long-term success so that these businesses can flourish. This is crucial given the high risk and extended timelines in real estate. The team at ABK Capital will work tirelessly with the clients at every stage of the process. Many South Florida developers can attest to their dedication to excellence.
Although the pandemic hit various sectors hard in the beginning, the real estate scene in South Florida has been able to bounce back strong relatively quickly. In Miami, there is a good level of demand for housing, office space, retail space, and hospitality. The resurgence is thought to be fueled by pent-up demand from those who were planning to make purchases before the disruptions. The low mortgage rates are also helping to convince people that it is the right time to take out loans. In fact, the total home sales for the Miami-Dade County has just posted record highs for the second quarter of 2021.
It is clear that buyers have a tremendous appetite for real estate right now. However, many developers are having a hard time getting the loans they need to create enough supply. Lending institutions are still reeling from the pandemic-induced slump. ABK Capital solves this through creative financing solutions such as trading in equity interests, mezzanine loans, and bridge financing. The team can determine suitable applications and help their clients avoid common mistakes.