Passive real estate investing through the long term is the best way to profit from the revitalized US housing market.  In "Housing Play the Rebound," an article in the Investment Guide issue of Money magazine, Lisa Gibbs reviewed the other options.

Passive Investing Longterm

While Gibbs wrote an excellent article in Money that all should read who are considering real estate investing, a passive approach for the long term has proven itself for those looking to profit from buying and selling assets, no matter type.  Study and study reveals that those trying to gain from a short term approach lose the great majority of the time in all asset classes.  When investing it is always best to put the power of time, the most dominant force in the universe, on your side.

There should also be every effort to have the benefit of seasoned professionals on your side, too.  That is what passive real estate investing accomplishes.  There is a wide range of real estate deals to consider: foreclosures, flipping properties, turnkey properties, small apartment buildings, and the financing of private mortgage notes.    

While it is possible to eventually match the experience of seasoned real estate professionals, it is highly unlikely.  It would also cost the consumer a great deal of time and money.  Those resources would be much more efficiently and effectively deployed as a passive investor with a long term approach in high yield real estate investing. 

Passive investing for the long term not only puts time and expertise on your side, but also creates a needed buffer of risk mitigation.  No matter what the investment or how successful the participants, risk management is needed.  As John Briet, the formerly the top risk manager for Merrill Lynch, stated, "If its profitable and seems riskless, its a business you don't understand."  Investing for the long term helps mitigate the risks of an investment.  Investing with experienced professionals who have been successful is an even higher form of risk management.

After reading the article by Gibbs in Money magazine, which all should do, the passively investing through the long term becomes more and more appealing in real estate.  Profits are made from the experience and expertise of the professionals in real estate.  That results from real estate being a business that they do "understand" and have the results to show for it.