Non-Bank Real Estate Financing Needs Deeper Risk Assessment

Moshe Peledmer, VP of Marketing, Sales, and Business Development at Adit Finance, stated that while real estate growth is impressive, the focus must shift to the quality and stability of financing. He emphasized that the past two years, marked by interest rate changes, war, slowed sales, rising construction costs, and economic and security uncertainty, have tested the real estate sector and its financiers. Peledmer highlighted that projects appearing perfect on paper can face harsh realities, underscoring the need for thorough due diligence, calculated risk management, and accurate pricing over speed and flexibility.

He explained that a financing company's true test lies not in its ability to quickly provide credit, but in its comprehensive support throughout a project's lifecycle. This includes understanding developer and project needs, scrutinizing cash flow, monitoring sales, identifying warning signs, and adapting solutions to changing circumstances. Peledmer stressed the importance of accurately assessing risk, differentiating between projects based on developer experience and location, and tailoring financial structures to on-the-ground realities to ensure sustained industry growth.

Peledmer also noted a trend of top professionals moving from large banks to non-bank financing entities, viewing this as a sign of the sector's maturation and professionalization. These professionals bring rigorous banking discipline and expertise to a more flexible, less bureaucratic environment, offering significant added value to developers and construction companies. He believes the combination of banking fundamentals and agile entrepreneurial thinking creates a powerful tool for navigating the market.

Looking ahead, Peledmer stated that success will be measured not just by credit portfolio growth, but by the quality of people and deals chosen, the trust earned from developers, and demonstrated professionalism. He urged a self-assessment of decision-making, pricing, and early problem detection, ensuring that current deals remain sound in the future. Achieving this will solidify non-bank financing as a stable, essential partner in the Israeli real estate landscape, rather than just a hidden alternative to banks.