In the Investment Guide 2013 of Money magazine, Sarah Max and Donna Rosato wrote about revising financial planning in the article, "Makeovers: Five Families Start Fresh." A major requirement was purchasing long term care insurance to protect assets of the families against nursing homes costs.  

As Max and Rosato pointed out in the Money magazine piece, not only are long term care expenses costly, so is the insurance!  Property planned, however, flipping properties can provide for long term care expenses.

While many television shows and other stories in the media glorify and glamorize those who buy a property, fix it up, and then sell it for a quick profit, most are destined to lose money in the end run.  No matter what the asset class, report and report reveals that those trying to book short term profits end up as losers.  The best way to profit from property flipping is as a passive investor with a long term approach.  That also comports well with funding long term care expenses.

Companies such as EquityBuild, a real estate investment firm, allow for passive investing in the flipping of profits.  This can be done with a long term approach.  In terms of extensive periods of time, Jerry Cohen, the President and Founder of EquityBuild, has been a principal in more than 1000 real estate transactions dating back to 1984.  That is "long term" no matter what the standard of measure!

As with all investing, there needs to be significant time paid to providing for risk management in flipping properties to provide for long term care.  Financing property flips with EquityBuild is probably the best way due to the experience of Cohen and others with the organization.  That experience helps prevent costly mistakes, which is the essence of risk management.

Another way is to only flip properties that can be rented to cover the expenses.  That way, if the real estate does not sell in time, it can be rented to finance the monthly costs.  That prevents the property from becoming a cash drain when it should be providing for long term care.  There is no reason that small apartment buildings or rental houses cannot be flipped for profit.  Having the tenants in place will make the property even more appealing to a buyer.

More risk management can be practiced by only flipping properties with funds from a retirement account, such as an individual retirement account (IRA).  No property held in a retirement account can have a mortgage.  That is ideal for property flipping as there is never the burden of mortgage payments if the property does sell immediately.  When the real estate is sold, the profits are tax free when it is part of a retirement account.  If rental income is produced before it sells, that too is tax free when the property is in a retirement account.

Real estate is a wonderful investment due to its flexibility.  While flipping properties may seem risky, passive investing with a long term approach can make this suitable for financing long term care and other retirement costs.  This needs to be accounted for for in advance, of course.  Investing with a firm like EquityBuild is needed here as all aspects of financial planning for flipping properties have already been addressed.