"Housing Play the Rebound"  was the title of an article by Lisa Gibbs in the Money magazine Investors Guide 2013 issue.  In a fine piece, Gibbs wrote about how the readers of Money should profit from the recovery of the housing market in the United States.  One of the best ways is through passive investing in flipping properties.

 There is certainly no shortage of television shows or articles about how to get rich from property flipping.  There is actually no better way to lose everything than trying to flip properties, if you do not know what your are doing...which few do!  This is true for every asset class, not just flipping properties.  The biggest profits are made from passive investing for the long term.  As Warren Buffett, considered by many to be the greatest investor ever who is worth over $50 billion, has stated many times, my preferred holding period is "forever."

That be done with flipping properties by investing with seasoned professionals.  Those experts in the field, such as Jerry Cohen, President and Founder of EquityBuild, a real estate investment firm, have decades of experience.  Cohen has participated as a principal in more than 1000 real estate transactions since 1984, of which many were property flips.  Investing with Cohen in flipping properties is needed risk management, which is critical for the buying and selling of all asset classes.

Another way to practice risk management in flipping properties is to all invest in those that can be rented.  If the rental income covers all expenses, a property flip that goes unsold will not be a cash drain.  If there are tenants in a property paying rent, it could also be more attractive to buyers.  This type of property can provide needed downside protection.  Almost any property will work here so long as it selected with that requirement in mind, no matter if it is a condo, single-family house, small apartment building, or turnkey property: all can be flipped with being fully rented!

The returns on flipping properties with someone like Cohen can be high, in the double digits.  These returns can be enhanced by placing the properties to be flipped in a retirement account, such as an Individual Retirement Account (IRA).  When an asset is held in a retirement account, there are no taxes.  So if the property is flipped for a profit, there are no taxes.  If there is rental income from the real estate, it is tax free, too.

Property flipping can be very flexible, and very profitable.  

To maximize the gains and minimize the risks, it is best to passively invest with a long term approach.  Property flipping deals can be financed, which results in diversity, which leads to higher levels of risk management.  Property flipping can be very risky, but when done properly as a passive investor, it can be even more rewarding.