There is no doubt that those investing in real estate are doing well as the sector recovers.  In a recent Money magazine article by Lisa Gibbs, "Housing Play the Rebound" focused on ways to profit.Housing Rebound  Real estate investing using retirement accounts is an ideal way to benefit from the revitalized housing market.

When a there is a bull market in any asset class, risk mitigation is the last concept being considered.  Profiting while the time are good is the overwhelming though.  But risk mitigation in the most important factor for profiting in any asset class for the long term.

Real estate investing in a retirement account, such as an individual retirement account (IRA), provides a great deal of risk management.  There can be no mortgage for real estate in a retirement account.  That mitigates risk as the owner never has to worry about missing payments and losing the property in through foreclosure.  With the market strong, that never appears likely: that is surely what the millions who lost their homes in foreclosure though in the years before The Great Recession.

That does not mean there cannot be high yields due to the lack of leverage.  The yields for a the wide array of real estate assets that can be held in a retirement account are very rewarding.  As an example, private mortgage note investing, financing property purchases, with EquityBuild Finance, the funding arm of EquityBuild, a real estate investment, has returned an average of 12 percent.  In addition, there have been no defaults.  That is very solid risk management!ira investing private mortgage notes

Retirement account investing in real estate is also an excellent way to profit from flipping properties.  While that may seem odd as flipping properties goes for short term gains, it can be done on a long term basis as a passive approach.  It is also wise to only finance properties to be be flipped that can rented to cover the mortgage if it does not sell quickly.  That way, the property does not become a cash drain.  This needs are take care of when an investor finances a group that flips properties, such as EquityBuild.  Jerry Cohen, the President and Founder of EquityBuild, has been a principal in more than 1000 real estate transactions since 1984, of which many have been flips.  That Cohen and EquityBuild have been so active for so long is a testament to the success in real estate investing: no one does something that long in a sector as competitive with the capital requirements of real estate unless they excel, especially at providing returns for investors!

No matter what the real estate deal, there will be no taxes on the investment income or the capital gains if it takes place in retirement account.  If a small apartment building is owned in a retirement account, the rental income is tax free.  Should properties be flipped in a retirement account, the gains will not be taxed.  Passive investing with a long term approach makes profiting from the rebound in housing even more appealing as investors are benefiting from the experience and success of others in EquityBuild and EquityBuild Finance.