There was a time when people considered real estate to be the safest investment a person could make. And why not? During the big real estate boom of the late 1990s through the first half of 2006, home values across the country shot up. People who bought condos or single-family homes in most major cities saw their housing values skyrocket sometimes by 200 percent or more.

Of course, those days are long gone. Today, a growing number of homeowners are watching in horror as their housing values continue to fall. The Wall Street Journal recently reported that nearly 25 percent of U.S. homeowners were underwater in the third quarter of 2009. This meant that they owed more on their mortgage loans than what their homes were worth, a financial situation no one wants to be in.

That leads to one big question: Is real estate still a sound investment?

The answer, not surprisingly, is complicated. It all depends on how quickly you want to make money.

With the real estate boom ended, flipping real estate properties is no longer an effective way to make big money. This was a big trend in the late 1990s, early 2000s: Investors would buy condos or single-family homes in trendy city neighborhoods or in communities that were in the middle of becoming trendy. They’d renovate these often dumpy residences – adding such touches as new hardwood floors, updated kitchens and larger master bedroom suites – put them back on the market and sell them for double what they paid.

Flipping made a lot of people very wealthy very quickly. Today, though, real estate investors have to exhibit a different kind of skill: patience.

Today’s investors must hold onto a home for five, seven or 10 years to see any serious price appreciation. This may seem unfortunate, but it’s actually the way real estate investing used to work. You’d hold onto a property, either living in it or renting it out, and then sell it for a solid profit of $50,000 or more. That’s not bad for an investment that you hold onto for seven years or so. Historically, housing values have increased. And by holding onto a home for seven years, you can increase your odds of riding out any real estate slump or slowdown that might occur.

So, yes, real estate investing is still a positive option for your investing dollars. Just don’t expect to make a fortune overnight. Real estate today is truly a long-term investment.