''Maimondelen' managed to save a real estate developer 1.68 million NIS in annual interest: Here's how it happened

In the competitive world of real estate, the window of opportunity for profitable deals sometimes closes in a flash. Many entrepreneurs find themselves facing a broken trough when the banking system hesitates or refuses to provide financing, and they are forced to make fateful decisions under time pressure.

This is exactly what happened recently to a client of the Maimondeln company, an entrepreneur who identified a golden opportunity to purchase a strategic plot of land in Jerusalem - a deal that carried a profit potential of tens of millions of shekels.

The story began some time ago. The entrepreneur, who wanted to implement the deal, knocked on the doors of several banks and used various consultants, but was repeatedly refused. The danger of losing the deal hung in the air. At this critical stage, with time running out, and in order not to miss out on the enormous profit potential, the entrepreneur turned to a non-bank financing body to save the deal.

The price, as expected, was high. In order to obtain the high percentage of financing required for the purchase, the developer was forced to mortgage not only the purchased plot of land, but also two additional private properties he owned.

In addition, the monthly repayment for interest alone was an astronomical sum of 340,000 shekels per month. The client, who believed in the project, paid the enormous payments in order.

The real drama occurred recently: the client contacted Maimondeln, who identified an opportunity and embarked on a renewed opening process with the banking system.

This time, they reached the bargaining position by presenting one of the largest banks in Israel with a solid, proven portfolio, and the tremendous future potential of the construction project that will be built on the lot.

The bank, which understood the size of the business opportunity and the strength of the project, agreed to provide sponsorship and provide the entrepreneur with new, full financing.

Maimondeln's move led to financial results that are difficult to remain indifferent to:

• Lowering interest rates: The huge monthly repayment, which was 340,000 shekels at the non-bank financing company, was cut in one fell swoop and now stands at only 200,000 shekels at the bank. This is a direct and immediate savings of 140,000 shekels each month - and 1,680,000 shekels per year.
• Lien release (economic oxygen): While the non-bank loan "strangled" three of the developer's properties, the bank recycling was carried out in a smart way that allowed the full release of the two additional properties. Today, only the plot itself is mortgaged, which gives the developer tremendous financial freedom to continue his business, and opens the door to additional real estate transactions.
• Smart Payment Mechanism (Grace): Beyond the interest savings, the 'Meimondelen' consultants managed to tailor a unique suit for the entrepreneur - a special mechanism that grants him a complete exemption from paying interest for the coming year (until he enters the banking support phase for construction), without absorbing "compound interest" or future fines.

• The bottom line, say company owners Matityahu Veshel and Eli Rabinowitz, is that once again, 'Maimondelen' has demonstrated in practice how even a customer who was previously rejected and reached the limit of his financial capacity in the non-banking market can make his way back to center stage on the banking stage under attractive interest rates, save the deal of his life, save millions of shekels, and open up new business opportunities for him.