In the investment book, "The Beardstown Ladies Stitch-in-Time Guide to Growing Your Nest Egg," the most important piece of advice given was to "start saving."  Funds should be tucked away right now so that investing for future gains begins immediately!Flipping real estate  A rewarding way to convert that capital into greater profits is through flipping properties.

While there are many ways to flip properties, the most productive way is with a passive approach for the long term.  Flipping properties, while potentially very rewarding, is also very risky.  That is the risk reward tradeoff there is for every investment: the higher the potential reward, the higher the potential risk.  And as Michael Lewis says in his book "Boomerang," every investment has a risk.

Even though flipping properties for a profit is risky, it can be lucrative over time. Following the advice of the Beardstown Ladies, it is best to get started as an investor with a long term outlook. That puts time on the side of the investor, which provides the ultimate in risk mitigation: a critical element in all investing.  

There are other ways to mitigate the risk in flipping properties, too.  Only investing in property flips that could be rented out to cover the mortgage if the real estate does not sell quickly is another.  That way the rental income from the property will cover all of the operating costs if it does not sell immediately.  That prevents the real estate from becoming a cash drain.  A property with a tenant in it paying rent is also easier to sell to those looking for investment real estate.

Flipping properties with a retirement account also reduces risks and increases the net income.

When an asset is held in a retirement account, there are no taxes.  When the property is flipped for a profit, there are no taxes.  If rental income is received, that is tax free, too.  As there can be no mortgage on real estate that is part of a retirement account, there is no cash drain if it does not sell immediately.

To profit from flipping properties, the Beardstown Ladies were correct in that getting started is crucial: the sooner the better.  That puts time on the side of the individual.  Passively investing in flipping properties with experienced professionals the practiced success of those experts in the individual's corner, too.