In complex projects, the funding body is an essential part of the ability to successfully complete the project. It is, in fact, the main partner along the way.
Entrepreneurs Elior Houshmand and Daniel Ben Abu tell why it is important to work with someone who provides flexibility, personal support, and speed of response.
What is really important for a real estate developer when choosing the body that will accompany him along the way?
Elior Houshmand, head of Ofakim: "In the Israeli market, which lives from one 'earthquake' to another, speed of response is becoming a key player. In just the last few years, we have gone through a global pandemic, war, changes in the real estate market, a shortage of workers, economic and social crises, rising interest rates, and more, and as an entrepreneur I have to adapt to the changing speed while on the move. This is almost impossible if you don't have a strong financial backing, one that flexes with you, understands your needs, and allows you to adapt time and time again to the changing reality."
Houshmand, who used the services of Barkat to finance a residential project in Petah Tikva, emphasizes the tremendous added value that the right financing body brings in a time of crisis.
"On the eve of the outbreak of the war, when I had to advance payments to suppliers to advance things and to avoid delays in the project, I was exposed to the significant difference between a banking system and a flexible and efficient financing body," shares Hoshmand. "Things that could take weeks in the banking system took Barkat two days, the processes progressed quickly. In a project that consists of a combination of many different suppliers, subcontractors and service providers, it is very important to have a rhythm and an accessible flow, and to have an ongoing and stable relationship with the financing entity that supports the project."
At a time when the real estate industry is forced to deal with an unprecedented series of challenges – an ongoing war, a severe labor shortage, soaring construction costs, and a high interest rate environment – the ability to respond quickly to changes and unexpected needs becomes a critical strategic advantage. In times of crisis, when many of the standard processes go awry, entrepreneurs find themselves in need more than ever of a financing body that can think and act outside the normal framework.
"Things are moving in a completely different way"
Developer Elior Houshmand is currently in the final stages of completing an urban renewal project in the 'Quiet Center' neighborhood in Petah Tikva. The project, located at 68 Shmuel Salant Street, includes the reinforcement of 9 existing housing units and the addition of 9 new units for marketing, and is currently in the 90% execution phase.
"I started the project with my own funding, but along the way, a quality collaboration was forged with Barkat," says Houshmand. "These are highly skilled professionals who know how to provide a substantive response and understand the need to provide a quick response. I felt like I had a real partner, and that gave me confidence. The connection was so successful and effective, that I also chose to continue working with them on another project that we are promoting on Rothschild Street in the city.
"I was debating whether to choose a bank or a financing company, and when I saw the process that Barkat facilitates, it was clear to me that this was the right path for my project," Hoshmand describes the decision-making process in choosing the financing body. "In the banking system, there are elements that have procedures that are so long and cumbersome, and in contrast, when working with a financing company, there is both real personal support and a completely different pace."
The entrepreneur emphasizes that in the world of real estate, especially during challenging times, availability and rapid response become an asset that cannot be given up. According to him, "These are critical parameters that help and make the work easier. Especially when it comes to a project that is a chain of events, and any delay could affect the entire project."
With a finger on the pulse
The quarry project in Mevaseret Zion presents a different kind of challenge.
Developer Daniel Ben Abu, who is leading the project, describes the project that is currently being built, "The building we are building will include three floors of underground parking in an area of 4,500 square meters, and another 4,000 square meters of offices. We are currently in the execution phase of 60% of the project," Ben Abu explains.
"Before we came to Barkat," he says, "we looked at several banks and financing entities. In the end, we chose to move forward with Barkat because from the very beginning they knew how to offer a real solution to our needs. They understood the project when we presented it, they understood our unique needs, and we were able to find a partner who was efficient, available and creative, and who knew how to provide a solution quickly."
According to him, beyond the initial process of receiving funding, the funding body plays a significant role in the success of the entire project and reaching its finish line. "For me, one of the things that is most important to me is the ongoing support, the address I have to contact and the great availability. Since we started working with Barekat, we have received ongoing monthly support, in which every month we receive a report from their supervisor on the progress of the execution on the site, and then a process is carried out to release funds and make payments to suppliers, which is done quickly and in a regular and orderly manner."
The unique complexity of the project required flexibility of thought on the part of the financing body. "Our project is complex from a planning perspective," explains Ben Abu. "In addition to the original planning, we are promoting construction additions in various planning processes. Bareket understood this, and although this is a closed project with specific planning, they also understood the requirements for planning flexibility and were open to the possibility that the project will grow and change along the way."
"Beyond that," continues Ben Abu, "this support and availability encourage us to stick to schedules and create certainty for all partners in the project. For example, a supplier working on site knows that a transfer will be made to him every 25th of the month, and that we always meet deadlines. In cases where we need advances or payments before the 25th of the month, they adapt and release the funds quickly - everything just runs smoothly and progresses efficiently."
True partnership in times of crisis
The most significant challenge today, especially in commercial projects, is marketing.
Ben Abu describes the complex situation: "We, fortunately, entered the project with 50% sales. But since the war, sales have stopped, both here and in Israel in general. But despite the great challenge, Barkat continued to demonstrate flexibility and assist in implementing the project. In the end, this is business, and they live this industry and understand the reality on the ground, and they were with us even in more complex and difficult times."
What makes working with a financing company unique? Ben Abu summarizes simply: "The banks exhaust you. With Barkat, things are simpler, they respond quickly, understand the terrain and know how to find creative solutions if necessary. It's much less exhausting than working with the banks. The trust is mutual, for me they are part of the project and it is very important to me that they come to the site, and when I ask them to come to the site, they come to see, even though they don't have to, we make sure to involve them in the progress of the construction."
In the real estate world of 2025, with new challenges joining the market almost daily, the choice of a financier is increasingly becoming a strategic decision that goes far beyond the interest rate. As the developers working with Barkat attest, in times of uncertainty and changing market conditions, speed, flexibility, availability, and professionalism are the factors that make the real difference between a project that gets stuck on the road and one that manages to get through the turbulent period and reach the finish line safely.
emerald, controlled by Dr. Gil Deutsch, Roni Biram - Chairman of the Board of Directors and Adi Gazit - CEO of the company, is a public financing company traded on the Tel Aviv Stock Exchange, one of the pioneers and leaders in the real estate credit industry, which focuses on construction support for developers according to the Sales Law, as well as construction support for purchasing groups and landowners.
English 
Hebrew