Real Estate Investing

Firstly, I want to preface this article by saying I am not a financial advisor. This info is simply to give you a little insight for you to do more research on your own or speak to an expert to make the best choice for you.

Is it time to diversify your portfolio? With the volatility in the stock market and the low rental inventory, it’s certainly something you may want to consider. Short-term rentals, VRBOs, – think beach properties -are also very popular!

Though it may seem intimidating, buying and owning real estate is an investment strategy that can be both satisfying and lucrative. Prospective real estate owners can use leverage to buy a property by paying a portion of the total cost upfront, typically a 20% down payment.

There are many other ways to acquire a property, for instance, you could borrow under a very specific lending program called a debt service loan. Some loans will qualify you by counting the current rental income.

There is also an option to self-direct your 401k. If your job has a 401k account, then you can redirect that money into investing in your property. The rental money must go right back into your 401k and any repairs or improvements will come out of that account too. To self-direct your 401k account, you would need to set it up with a third-party company, similar to a 1031 exchange.

What makes a good real estate investment? A good investment has a high chance of success or returns on your investment. If it is a high-risk investment, it should be balanced out by a possible high reward. Investments with a high probability of success are not always guaranteed.

What is guaranteed is the house. The duplex, the land, whatever the real estate investment may be, is tangible. The idea is to gain a positive cashflow, while you’re building equity and the tenant is paying down your mortgage!

I have Real estate investments and have helped many people get into it as well. I am available for a free consultation at 856-297-5790 or email me at patsettar@gmail.com.

I recommend speaking to your accountant about the tax benefits of owning investment properties, such as property depreciation which can offset your tax burden. Be sure to do your homework to understand the market on current rent values, municipal requirements, your landlord responsibilities, and tenants’ rights. Working with an experienced Realtor and looking for local real estate investment groups can provide you with good insight.

Happy investing!

---

About the Author

Pat along with her husband, Mike Settar, have been Harrison Township residents for 31 years. Pat and Mike raised their three daughters, Meryl, Carly, and Paige in Mullica Hill. All three Settar girls attended the highly-rated Harrison Township Elementary Schools and graduated from Clearview Middle and High School. Pat and Mike love being residents and raising their family in Mullica Hill.

Pat Settar is a prominent member of the community. She is the Chair of the Harrison Township Beautification Committee, a proud supporter of the Harrison Township Historical Society, an annual sponsor of Harrison Township Day and Lights on Main, and supports a variety of other causes in our town.

Pat has been recognized with several Real Estate industry accolades, including the Top 1/2% in the BHHS Network, a member of Philly Magazine’s Who’s Who for Top Producers, and a Platinum Award from the Board of Realtors, and many others. Her most cherished industry honor is the Don Brogan Peer Appreciation Award. Pat was chosen for this prestigious award by her peers from the Gloucester/Salem Counties Board of Realtors for her high ethical standards, maintaining cooperation with others in the industry, having a spirit for the Real Estate business, and her knowledge of the profession. Pat Settar has built an all-female team and is proud to mentor and support these incredible women in their Real Estate careers. The Pat Settar Team has a 5-star rating on Zillow, she says that making her clients happy, makes her happy!