"Obama Needs to Embrace the Promise of US Cities"  blared the headlines of a recent article by Edward Luce in the Financial Times.  More than just President Obama, all would do well to "embrace" real estate investing!

 History proves this point!

Over the last two centuries, gains in real estate have produced about 90% of the world's millionaires.  That just did not result from bull market surges, either.  Real estate performs well under adverse economic conditions, too.  Over the course of The Great Recession, rental income in the United States actually rose as stock and bond prices plummeted!

There are many different ways to profit from high yield real estate investing.  The best way is to be a passive investor for the long term.  That ensures that time is on the side of the real estate investment, which is critical.

Being a passive investor ensures that others involved in the transaction benefit from the experience of all.  As real estate often times entails a 30-year mortgage attached to a property, that is a wise way to proceed.  That level of risk management is best for all investing, especially real estate.

For those who want to invest to real estate but do not want the responsibilities of the actual ownership, private mortgage notes are appealing.  

Private mortgage notes result from when a party finances the purchase of a property by another.  It can be done by an individual funding another's buy of a single property.  But it is far better advised to participate in a consortium of investors.  Doing that will protect a passive investor due to the broad diversity of properties being financed.

Again, that is risk management at its best being practiced in high yield real estate investing.

Along with "embracing" real estate investing, it is way to place the assets in retirement accounts.  When a piece of property or private mortgage note is held in a retirement account such as an Individual Retirement Account (IRA), the investment income is tax free.  If it is rental real estate, the rental income is untaxed, too.  Should the real estate asset be sold for a profit, there are no capital gains taxes when it is held in a retirement account.

The real estate market in the United States has rebounded under The Obama Administration.  The policies from Washington, DC have done much to bring back the housing market from The Great Recession.  All should "embrace" real estate investing to profit from the gains ahead, as 90% of the world's millionaires have over the last two hundred years!