For those who follow the investing columns of Jeff Reeves, the headline says it all.  For those who prefer their own evidence, there is more than enough verification from independent sources that are reputable.real estate investing  All lead to once unmistakable conclusion: the real estate market in the United States, both residential and commercial, is well on the road to recovery from the crash of The Great Recession.

 

Reeves (pictured sidejeff reeves - real estate investing), the Editor of InvestorPlace, writes in his piece for MarketWatch, "It's official: Housing has Recovered," that, "...while there's no single item that states definitely whether housing is back, there are a host of data points that, collectively, tell a compelling story."

For Reeves, these include:

  • Prices: ten consecutive months of gains with price up in 41 states;
  • Starts: up 13%, as reported by the Census Bureau;
  • Permits: now at the highest level in five years;
  • Builder Confidence: now at the highest level since February 2007, as reported by the National Association of Home Builders;
  • Housing Stocks: publicly traded companies in the sector have soared, with many rising over 100%; and
  • Distressed Sales and Foreclosures are falling, particularly in hard hit markets such as Phoenix.

Concluding this partial summation of his bullish posture on real estate, Reeves states, "This list is just from the last two weeks.  I could go on, but you get the idea."

For investors, even though housing is recovering there are still gains ahead, particularly from passive investing for the long term.  There are many opportunities to minimize the risks yet still profit.  Turnkey properties are ideal for those looking to start.  These are from housing that is found by experienced professionals, fixed up, then rented out to a solid tenant with management in place.  A turnkey rental property minimizes the risks of investing in real estate for those who are not that experienced.

If actually owning real estate is not alluring, investors can prosper from financing the purchase of properties by funding private mortgage notes.  These are mortgages that private investors, either individually or in a group with others, furnish to selected borrowers.  Private mortgage investing can allow for double digit returns without having to actually own a property.

Holding real estate investments in a retirement account will take the return even higher.  All the income and capital gains will be tax free.  In addition, there is more flexibility afforded to the owner from a retirement account, particularly when the property is sold.

"We see the recovery every day in markets where we are active, particularly in Chicago," noted Jerry Cohen, the President and Founder of EquityBuild, a real estate investment firm.  "The returns are certainly there, too, as we are averaging 17% for our transactional deals and 12% for private mortgage financing.  Those returns prove the value of passive investing for the long term."

In terms of long time periods, over the last 200 years, real estate wealth has created about 90% of the world's millionaires.  During The Great Recession, as stock and bonds plunged, rental income in the United States actually rose.  When the housing market back, as Reeves writes from his office and Cohen attests from the street level, there should be even greater wealth created for investors in the years ahead.