Prepare for "Returns for US Stocks ...to be Dismal" with Real Estate Flipping:- For the experienced and adroit real estate investor, the outlook for property flipping will always be bright.

That is not so much for those preferring to purchase securities.Property Flipping Gold  "The Long Term Returns for U.S. Stocks and Bonds Turn Out to be Dismal"  was the title of a Penelope Wang piece in the Money magazine Investment Guide 2013.

In her Money magazine article, Wang quoted Rob Arnott, Chairman of Research Affiliates, as stating that,  "Stock returns are likely to average 4% to 6%."  That certainly is "dismal" and pales in comparison to the double digit returns posted by flipping properties.  With proper due diligence and risk management, investors with a passive approach should continue to do well over the long term with flipping properties.

The most important step to take to profit from flipping properties is to invest with a seasoned professional.  That is the best way to ensure high yield real estate investing gains by teaming up with those who are experienced like Jerry Cohen, President and Founder of EquityBuild, a real estate firm.  Cohen has been a principal in more than 1000 real estate transactions since 1984.  

Many of these deals have been flipping properties.  The length of time and number of transactions successfully executed by Cohen are testaments to his effectiveness in property flipping, and other forms of real estate investing.  No one would be doing this as a hobby for over three decades if they were losing money on the deals! 

In passively investing with an expert like Cohen, the necessary due diligence and research tasks are taken care of by EquityBuild.  An individual cannot replicate the experience and team that comes from a company like EquityBuild.  In addition to being satisfying the diligence and research needs, there is also a degree of risk management taking place in investing with EquityBuild.

Even more risk management and downside protection can be secured by just investing in properties to be flipped that are rentals.  That way, if the real estate does not sell, the rental income will coverage the monthly expenses.  While waiting for a buyer, investment income will still be booked.

To enhance the return of flipping properties, funds could be used from retirement accounts.  Doing that will result in the gains from the sale being tax free.  If it is an investment property is being flipped, there is no taxes on the rental income, either.  

There is an additional layer of risk management when property is held in a retirement account.

No mortgage is allowed for real estate in a retirement account.  As a result, there is never a worry about foreclosure.  If a property is not flipped immediately, the retirement account prohibition against having a mortgage prevents it from becoming a cash drain for the investor.  That allows for the passive investor to be patient and wait for the long term, when the biggest profits are made for any asset class.

Over the last month, the Dow Jones Industrial Average is down 2.77%.  Arnott's prediction looks to be accurate, based on that performance.  But for passive investors looking to profit over the long term, flipping properties with EquityBuild has proven to be a double digit winner!