b'Recovery continued from page 11dip in value in 2020, and the bottom forthe Great Recession was devastating for theThese are indeed turbulent times, and it is that dip isnt predicted to come for somereal estate market, it was private money impossible to predict fully what the close of time, according to a recent Bloomberggathered from private individuals, pension2021 will look like in the economy or the U.S. News Report.Also, people are rethinkingfunds, IRAs, and other private investors real estate market.What we can say with where they are living and working, bothwhich proved a source of key capital duringsome confidence is that history has shown because of the pandemic and becausethe recovery.For example, In 2012, privatelythat private investors may be the lubricant companies have been forced to realize thatfunded multifamily property loans in thethat keeps the gears of the real estate sector technology allows a dispersed workforce toUnited States went up 22% over 2011, andfrom locking up in times of crisis, and they work effectively and, in some cases, moreprivately funded loans for retail propertylikely will be called on to play a large role efficiently than they would in an office.increased by 17%. in this latest recovery effort.This means that investments in urban and office real estate, once sure bets, are nowPrivate lenders are able to navigate moreOdell Murry is founder and president of MAI on shakier ground.turbulent terrain because their definitionsFinancial Services Inc., a private-mortgage of risk and success are fundamentallycompany and institutional commercial All this may spook institutional investorsdifferent from traditional mortgage lending.mortgage broker.He is also a board member from putting money down on large-scalePrivate loans are typically based on theand past president of the California Mortgage projects.However, there may be a needamount of equity in a property, rather thanAssociation.Murry originates institutional for more small-scale lending for housing inon the borrowers individual credit score,and private-mortgage loans on apartments, the suburbs and rural America, as peoplefor example.And private investors areindustrial, retail and most other income-flee to places with more space and are nomore concerned with seeing a solid planproducing commercial real estate.He also longer tied geographically to their jobs. for a good rate of return on investmentserves as chairman of the National Advisory than with credit scores, and that may leadBoard of the University of Massachusetts Filling the Void them to find good investments whenW.E.B. Du Bois Center.You can contact Odell Private lenders have proven they can stepinstitutional investors turn their back onMurry at OMurry@MAIFunding.com or (866) in when institutional lenders waver.Whilecertain borrowers in the real estate market. MAI-FUND.Page 12 Spring 2021'