A passive approach to real estate investing with turnkey properties is an excellent way to profit for those worried about the stock market.  In a recent article in Money magazine by Penelope Wang, Returns for US Stocks with Turnkey Real Estate InvestingRob Arnott, Chairman of Research Affiliates, warned that, "Stock returns are likely to average 4 to 6%."  Concerns about stock returns for the future are certainly not unfounded!

Wang's excellent Money magazine piece, "The Long Term Returns for U.S. Stocks and Bonds Turn Out to be Dismal" was in the Investment Guide 2013 issue.  As there is much concern about the future of the stock market with the Federal Reserve preparing to end its support program that has the Dow Jones Industrial Average so shaky, the real estate market continues to perform well.  Nothing new here, as that is the history of investing: over the last two centuries, gains from real estate have created about 90% of the world's millionaires.

What has also been proven are the rewards from high yield real estate investing in turnkey properties.

Investing in turnkey real estate results from a seasoned professional in real estate buying, fixing up, renting out, and then managing a property.  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 these have been turnkey property deals.  Buying a turnkey property allows for a real estate investor to profit from Cohen's expertise and gain from his experience.

To make the returns even higher, turnkey properties could be held in a retirement account, such as an individual retirement account (IRA).  That results in the investment income and capital gains being free of taxes.  If any rental income is earned from the turnkey property, it is tax free.  Should the turnkey property be sold for a profit, there are no taxes on the sale.

While the profits of Turnkey Real Estate Investing are compelling, so is the risk mitigation.

That is a critical part of investing.  Investors must always protect against the downside.  Buying turnkey properties from an organization with the history of EquityBuild offers a great deal of risk management.  The decades of experience in more than 1000 transactions of all types is a significant amount of protection for the investor.  Holding the property in a retirement account adds even more protection as there cannot be a mortgage.  While that takes leverage out of the transaction, the investor does not have to worry about missing payments and losing the real estate to foreclosure should tough times ensue.

It has been a strong stock market in recent years.  But much of that has been due to the support from the Federal Reserve.  It cannot go on forever: Jeremiah Stern, a Federal Reserve Board Governor, recently called for the Federal Reserve to pull back from its current program in September.  If the returns from stocks and bonds become "dismal," investing in turnkey real estate offers a rewarding alternative that has proven to be profitable.