All Forum Posts by: Marcus Brown

Here's a great video on the topic from Brad Lancaster who spends his time educating others on maximizing water use in the desert.

"Here in the desert community of Tucson, AZ, we only get 11 inches of rain a year. Yet more rain falls on the surface area of Tucson in a year than all of Tucson and all its inhabitants consume of municipal water in a year."

https://www.youtube.com/watch?v=I2xDZlpInik

Several years ago I was listening to a BP podcast, don't remember the number, and the hosts were saying that a common mistake a lot of new home owners make is that they get approved for a mortgage and instead of buying a house that's significantly below that, they go and buy as much house as they are approved for, and they may end up being over leveraged.

Should the same advice apply to a small multi family house hack, let's say 3-4 units? 

I want to learn about investing in small warehouses, are there any good references on that?

@Brock Freeman when considering a loan for commercial property, what do you want to see in an applicant(s) as far as experience, liquidity, and net worth?

I hope to be in Tucson in a month or so, don't have much experience yet, only flipped a few pieces of vacant land.

@Michael Ablan I've heard that B class properties are popular for this reason. In good times, people in C properties want to upgrade their lifestyles and moved to Bs, and in bad times people in A class properties want to save money and move down to Bs. I don't have any first hand experience with this theory but it makes sense.

If SFR 1-4 units are based on comps and multis are based on the income they produce, when the market corrects, do the multifamily properties take a hit in value like SFRs?

Thanks, I'm trying to learn what those different rules would be that way there are fewer surprises later. :)

Also, while I think of it, is it possible to get pre-approved for a commercial loan or are they originated based on the deal?

Yeah I'm not opposed to a 4 plex, but I was curious about the lending requirements for a 5+ since that is considered commercial.