Closing the financing gap

Real Estate Weekly, May 22, 2002

Obtaining a short-term mortgage just got easier -- and faster -- for small to mid-sized investors across the country. As banks and other traditional financing sources continue to set more restrictive financing parameters, Gala Resources is filling the gap.

Over the past year, Gala closed over 400 short-term loans to investors who are purchasing, rehabbing or constructing a range of property types from single-family homes to multi-unit apartment buildings. In the last six months, the firm closed a $4.75 million loan for a condominium project in Brooklyn, a $1.2 million construction loan for the renovation of a 100-unit apartment complex in Tennessee and a $2 million bridge loan for five apartment buildings in Connecticut. Gala expects to close more than 600 loans in 2002.

"We understand that there are experienced, qualified investors who simply can't wait for the lengthy bank process or who are working on projects that traditional banks don't entertain," said Alan Haberman, Gala Resources' COO. "But that doesn't mean their projects are not worth funding. We recognize that every deal comes with a unique set of circumstances and we are dedicated to developing a customized solution for each client."

Founded in the early 1980s, Gala originally focused on one-four family homes in the New York City area. Today, the firm arranges funding for a variety of property types all over the country. One of Gala's most active sectors currently is conversion financing. The $4.75 million loan in Brooklyn was for the conversion of a commercial building to 21 condominium units in Prospect Heights, a recent deal in Chicago involved two condo conversions, and the Tennessee deal involved the renovation of a 100-unit apartment complex in Clarksville.

Gala Resources arranges financing through its team of experienced lending officers. Howard Haberman prides himself on securing capital for his clients quicker than anyone else in the business. He recently arranged a $2 million bridge loan for the acquisition of five apartment buildings and a $900,000 loan for the renovation of three apartment buildings in Hartford.

"We've built an extensive network of contacts throughout Connecticut and continue to seek out other qualified investors, said Haberman. "But, while the Northeast, and specifically New York City, remain our core, we're expanding into the Midwest and Southeast as well."

Alan Haberman, a 40-year industry veteran, has long been respected as one of New York City's top real estate experts. He credits Gala's growth to the firm's strong principles. Although the firm has a national presence, Gala is a family business at heart -- in addition to Howard, his son Richard works for Gala as well.

"I'm an old-fashioned guy and we provide old-fashioned personal service to every one of our clients. By helping our clients realize their dreams we get to play in role in rebuilding neighborhoods across the country."

Gala Resources was founded by Aaron Ziegelman to meet the needs of the smaller, up and coming investor/developer. The firm remains committed to this mission.

"Gala Resources was created to serve as a partner for those borrowers in need of a quick and reliable source of capital to build their portfolio," said Ziegelman. "With a 25% referral rate, we're proud to share in the success of our clients as they graduate to more complex transactions and make their own mark on the real estate market."