With the American housing well on its way to recovering from The Great Recession, the Treasury Bond market is in a free fall.  In recent column in Barron's by Kopin Tan, "The Market Starts Taking its Medicine," investors were warned that, real Estate Investing Soars"Treasuries are on course for their worst year since 1978..."

What the excellent piece by Kopin Tan in Barron's once again demonstrates is what has been detailed in many articles on this site: real estate investing is far superior to buying Treasury Bonds.  It is not just the overall return, but the variety too with individuals able to profit from high yield real estate investing in foreclosures, property flips,small apartment buildings, and turnkey properties.  For those who want to gain from real estate investing but do not want to own properties, profits in the double digits have been registered through financing private mortgage notes.

Investing in private mortgage notes is the real estate transaction most like buying bonds.  A private mortgage note is a loan from an individual investor or group to another to finance the purchase of real estate.  While an individual can fund a private mortgage note to finance a single transaction, it is far wiser to join in a with other investors to finance a wide variety of properties.  That way diversity is provided as hedge against just one property going bad.

Buying any property can provide the investment income of bonds, though.  

Turnkey properties are particularly attractive for generating investment income.  A turnkey property is when an seasoned real estate professional buys, fixes up, finds a tenant, and then manages the unit so that the maximum amount of rental income is produced for the owner.  For the individual investor, this is a low risk way to profit in real estate as those with far more experience and resources select and prepare the property for profit.  Jerry Cohen, President and Founder of EquityBuild, a real estate investment firm, has been a principal in more than 1000 real estate transactions since 1984, many of which were turnkey properties.

For all the different types of real estate investing there is, the best way to profit is passive investing approach for the long term.  That provides the ultimate in risk management along with putting time on the side of the investors.  Risk management results from investing with those who are more experienced in real estate.  Staying with the investment for the long term allows for rental income to increase along with the value of the property.  The market for Treasury Bonds may be the worst in more than three decades, but real estate is performing the best it has in years!