All Forum Posts by: Alexander Wardell

Hello everyone!

My name is Alex Wardell and I live in Sandwich, Massachusetts. I am very new to real estate and the only experience I have is from buying my primary residence back in 2014. I am currently a state employee for the state prison system and I am looking forward to adding that to the list of previous work experience rather than current.

Prior to living in Massachusetts I lived on the New Jersey coast until I enlisted in the United States Marine Corps in 2008. After five years of active duty I deiced a change of scenery was a good idea, which lead me to Cape Cod.

My goals in real estate are buy and hold rental properties, mainly multifamily. I am looking forward to learning from others in the business as I start this path to the ever so elusive financial freedom!

Thank you all

Hello everyone!

I am VERY new to this market and other than my house that I "Own", 99% of my knowledge on real estate has been stuffed into my head over the past two weeks from this podcast, the Rich Dad series and YouTube. I consider my situation to be different from what I have found on the web, so I am hoping someone could throw out some ideas.

I am currently an MBA student getting paid monthly by the VA through VocRehab which is tax free and not considered a source of income for bank purposes. Although my education benefits are enough to cover my cost of living it is still not "real" income in the eyes of the bank. As I mentioned before I "own" a house on the Cape with a $1,700 mortgage payment. I am very interested and eager to start my real estate investing venture but like all newbies the thought of funding is the focus, other than finding a sweet deal of course. I am confident in my ability to get funding, whether it be private or hard money, but my question is related to following through with the BRRRR method which I have set my eyes on.

Say for instance I find a sweet deal for 200k and fix it up and find a great tenant that creates a cash flow of 1000 a month. My end goal is to refinance and get out of the high interest rate loan with the private or hard money lender ASAP. When I go to the bank to refinance I am afraid that they will hold my primary residence mortgage payment against me which will hold me back from the refinance. Even though I have over 4k of nontaxable income and now the 1000 cash flow from the rental a month, they will only count 75% of the 1k as income which is well below the debt to income requirements.

Should I start an LLC and purchase the rental property under that business? Would that separate the two house and make it possible to follow through with the BRRRR method? Or is there another way that my newbie mindset hasn't even started to understand.

If you have made it this far into the post I want to thank you for your time and I am hoping one day in the future I can be the guy who answers a newbie with some great ideas!