12% Letter - December 2006 - How To Collect Yearly "Rent" from the World's Most Successful Business... and Make 200%-250% over the next 5 years

How to Collect Yearly
“Rent” from the World’s Most Successful Business… and Make 200%-250% over the next 5 years – for doing nothing at all…

Dear Reader,

I’m writing today because I’ve just discovered a way for you to own – and profit from – the most spectacular real estate in the world…

I’m not talking about some promising but unnoticed plot of land in rural Florida, just off the highway…

I’m talking about acres and acres of the most prime commercial real estate available anywhere – land that’s already been developed… and whose owners collect a constant stream of royalty checks from what is arguably the world’s most successful business.

I’m talking about a way to collect a yearly “rent check” from the millions of acres on which one of the most popular fast-food restaurant chains in the world is built.

That’s the kind of opportunity I’m writing you about today. And there’s a very simple way you can take advantage of it, starting right now…

This company’s name is the most widely-known word on the planet, after “okay” and “Coke.”

And if you’d invested $5,000 in this restaurant when it IPO’d 30 years ago, you’d have nearly $700,000 today.

Simply said: This restaurant is a juggernaut. And – without a doubt – the main reason for its unrivaled success is that they have restaurants everywhere. Sometimes, right across the street from each other.

And what most investors don’t realize is this: You, too, can own a piece of that real estate. And collect a constant stream of income – a yearly “rent check” from this fast food chain – simply for holding it.

This investment is simple – just buying a stock. And you can trade it just as easily. But once you get your first check – and you realize how easy it is to make money on the best commercial real estate in the world – I doubt you’ll want to.

Literally, as big as you want. The more money you invest in this deal, the bigger the return. But here’s the best part:

If history is any guide, the longer you hold on to this investment, the bigger your check is going to get.

How do I know?

Because these payouts have gotten bigger every year but one since 1976. And over the past 4 years they’ve risen more than 200%.

The longer this land stays on the books, the more valuable it becomes – and the more money you’re likely to make as the landlord.

Unless this restaurant suddenly goes out of business – the best is still to come. In fact, if you get in on this deal now, I think you’ll easily make 250% in the next 5 years – just for doing nothing.

But it gets even better…

Right now, for a variety of reasons which have nothing to do with real estate (and everything to do with standard accounting practices), you can own a piece of this amazing portfolio of land… at a 53% discount.

So even if this chain does go out of business – or the company decides to sell this land for any reason – you stand to make even more money, very quickly.

Why the discrepancy? And why haven’t more investors heard about this?

The answer to these questions is exactly what’s given us this amazing opportunity…

And it’s also why – if you’re interested – you should get in soon…

Let me explain…

First off, the reason you can buy this land so cheaply is actually a matter of accounting.

You see, when a company carries land on its balance sheet, it’s valued at the price they paid for it.

Since most of the land this company’s sitting on was bought 20, 30, 40 years ago, the price on the balance sheet is much lower than the land is actually worth today.

While this land is valued on the books at about $30 billion, fair market value, according to most experts, is closer to $64 billion -- more than double what was paid for it.

In other words: If the land was ever sold at this fair market value, it would mean an instant 113% gain on the investment.

As I write this, two of Wall Street’s smartest dealmakers are starting to catch wind of this opportunity – and they’re trying to get in…

One of them wants to buy up enough of the firm that owns this land that he can start influencing company decisions. His ultimate goal is to sell off a large chunk of this land and reap the windfall that this accounting discrepancy has created.

As an investor, I don’t really care if this land gets bought up and sold or stays on the book and provides me with a constant stream of income. Either way, I’m coming out ahead… which is why I think this is the best deal I’ve come across all year.

But if this dealmaker gets his way – and large chunks of this restaurant’s real estate starts getting sold – this opportunity won’t stay good for long.

Which is why I just finished compiling the full details of this amazing deal in a special report I just published last week.

As you can probably imagine, there’s far too much information to tell you the full story here…

My name is Tom Dyson. And for the past year or so I’ve been working with Steve Sjuggerud out of our Florida offices, as a contributor to DailyWealth.

A few months ago, I began writing an investment advisory called The 12% Letter.

It’s published by DailyWealth’s publisher, Stansberry & Associates – a private research firm headquartered in the Mt. Vernon district of Baltimore, Maryland.

My most recent issue, which I just published last week, covers this real estate situation in full. In it, you’ll learn the full details of how this situation came to be – and what to do now to get in on it.

As I said before, taking advantage of this opportunity is as simple as buying a single stock.

If you’d like to read this report, I only ask one thing in return: That you give my advisory, The 12% Letter, a risk-free trial.

Now… I know it’s an unusual name, so let me tell you a little more about it…

Income.

No matter what your style of investing – no matter how much risk you can stomach – income is the ultimate goal for every investor.

You want to make money.

Of course, income means something different to everyone.

Your broker will probably tell you that as you near retirement age (and especially if you’re already there)... you should be more heavily invested in things like government bonds, annuities and CD’s. ‘Safe’ investments that will pay you interest.

This is what the experts call ‘income.’

I agree that investing for income is pretty smart... that’s what collecting “rent checks” from fast food real estate is all about.

But here’s what most investors don’t realize:

A one-year government bond, at today’s rates, pays you less than 3%. The same goes for a 6-month CD. At the end of the year, you’ll be lucky if you beat inflation.

That’s not income. In fact, that’s just the opposite – a slow drain on your finances.

Sure, you can eke out a higher rate – say 4.5%... if you’re willing to tie your money up in treasury bills for twenty years.

Here’s what I say to that: Thanks but no thanks.

The basic premise of The 12% Letter is that you can collect an even greater stream of income by investing in ‘high-yield’ securities – stocks, real estate investment trusts (REITs), master limited partnerships (MLPs) and other vehicles that pay big dividends.

And the promise of The 12% Letter is exactly what the name implies. If you follow the advice in my advisory each month, you could see annual returns of 12% or more – that’s 4-times better that what you’d get by investing in other ‘income producing’ vehicles like bonds and CDs.

Best of all, with the investments you’ll learn about in The 12% Letter, you’re not locked into anything. You can take money out... or put more money in... any time you want.

The investments I write about each month in The 12% Letter – have traditionally been some of the best performing stocks in the entire market...over almost any period.

“For more than two decades,’ reports the New York Times, ‘Dividend payers... have generally done a better job than other companies when it comes to enriching their shareholders.”

The Chicago Tribune report, “...last year dividend payers gained 18 percent to non-payers’ 13 percent. In the first quarter this year, dividend payers declined less than 1 percent, while non-payers plunged more than 8 percent.”

“You’d be silly not to look at dividends when you invest,” echoes John Waggoner of USA Today. “Dividends are an enormous part of the stock market’s return over time. The S&P 500-stock index has risen 1,160% in the past 30 years. Toss in reinvested dividends, however, and you have a 3,251% gain.”

Indeed, according to a study conducted by Gail Dudack, chief investment strategist for SunGard Institutional Brokerage, investors earned more from reinvested dividends than they did from stock appreciation in 13 of the last 20 decades.

You see, A good accountant can fudge 99% of the figures on a balance sheet or a profit statement.

I spent the best part of five years putting together accounting statements for Citigroup by day and attending professional accounting classes by night, so I know.

Sales can be carried forward, costs can be taken off balance sheet, assets can be written down. Even warehouse inventories can be fudged. Accountants can choose to value inventories on a first-in, first-out basis or a first-in, last-out basis. It can make a big difference, but both methods are legal.

There’s only one untouchable number in the corporate accounts: the dividend. A dividend is a fact. When companies pay a dividend, they mail out checks to every shareholder. The money leaves the bank and never comes back. There are no assumptions involved.

As a stock analyst, I place more weight on the dividend payments than any other statistic when I size up a company.

In short, good investing is all about one thing: Make sure you get paid.

Every month, in The 12% Letter, I’ll report on the highest-paying opportunities in the market – like this fast food real estate I recently uncovered.

I’ll show you everything you need to know to make three times as much money as you’d make with typical stocks, with far less risk, and far less work.

As an added benefit, you’ll collect extra dividend checks each and every year – a constant reliable stream of income.

So... how much would you expect to pay for research as potentially profitable as this?

I can tell you one thing: If you went to an exclusive hedge-fund manager or full service broker, you may get some good advice, but you’ll also pay some enormous fees. (S.A.C. Capital for example, run by billionaire trader/manager Steve Cohen, Charges their clients a whopping 50% performance fee on their profits – meaning they’ll keep 50% of all the money they make you.)

Analysts at most brokerage houses are paid anywhere from $200,000 to $1 million a year for research like this.

And I’ll be honest: We charge as much as $5,000 a year for some of the research we offer here at Stansberry & Associates.

I think we could charge just as much for The 12% Letter – and it would still be a bargain. If you sign up for my service today, I’ll show you how you could make more than that in a matter of weeks.

But if you sign up through this special offer, you’ll get an even better deal. And, like I said, you can try it risk-free – for a full 6 months. In the end, if you don’t like my service, I’ll give you back every penny you paid. And any reports you receive between now and the time you cancel are yours to keep, my compliments.

Is The 12% Letter right for you?

While most advisories are constantly trying to find hot "new" ideas, I've spend all my time making sure the ideas I'm presenting in my advisory are the very best ones -- the investments that have been making investors more money for the majority of the last two centuries than any other investments out there.

It seems like such a sensible rule -- crucial really -- and yet, it amazes me how so many investors willingly ignore it... and gladly sink thousands of dollars into regular stocks that pay them absolutely nothing in return.

Just think about that for a minute: The only way you're ever going to make money on most of the stocks you own is if someone decides to pay more for them than you did.

When you buy a typical stock, you have no idea when -- or even if -- you're ever getting your money back.

When you start to look at investing as a way to make money instead of a way to get lucky, I think you'll soon realize: Wall Street is probably the only place in the world where corporations can get away with behavior like this.

Suppose someone approached you looking to borrow some money to get a business idea off the ground. The first thing you'd probably ask is "How much interest will you pay me?" And the second thing you'd probably ask is "When will I get my money back?"

If you didn't get good answers, I hope you'd turn right around and walk away. Any sensible investor would.

But every day on Wall Street, investors willingly hand over thousands of dollars to companies that don't pay them a single penny in return. No interest. And no promise of ever getting their principle back.

Instead of holding on to regular stocks and waiting for the "big payday" (a day that may never come), why not try a different approach? Why not give yourself regular paydays instead -- and start collecting hundreds... even thousands of dollars every month?

If that sounds like a much better idea, then I urge you to try The 12% Letter today.

12 monthly issues of The 12% Letter. On the fourth Wednesday of every month, I'll give in-depth analysis on one of the featured companies in the 12% portfolio -- a company that's paying out big, steady dividend checks.

The S&A Digest – daily e-mail updates and market analysis. Every weekday, you'll receive an e-mail from the other editors at Stansberry & Associates Investment Research containing market analysis and commentary from a variety of investment perspectives (value investing, insider trading, small-cap speculation, biotech investing... and more) – as well as a digest of current investment news – and what it means for you – written by our founder Porter Stansberry.

If you decide to try my research – and you follow the advice I give you every month – I think it will change your whole perspective on what to expect from your investments.

In fact, I believe that once you try The 12% Letter, you'll never want to invest the same way again – which is why I'm offering the best guarantee I can think of:

Sign up for a trial subscription of The 12% Letter today and try it for 6 months. Read what I have to say every month and decide for yourself if my work is right for you. I guarantee I will give you the full details of at least 12 companies that will each return more than 12% in the next 365 days. If I don't meet that promise, you may cancel any time between now and the day your 6-month trial subscription is due to expire, and I'll promptly send you a FULL refund -- every penny you paid for my work.

Read my latest issue on the fast food real estate deal. If you invest in this company today, you could easily make 250% over the next five years, including a yearly “rent check” just for holding this property. If you invest the way I show you and you don't collect these checks, you can cancel your subscription and receive a full refund.

Even if I deliver on all these promises… and you're still unsatisfied with my work for any reason whatsoever... you can cancel your trial subscription any time in the next 6 months and I'll send you a FULL refund -- no questions asked.

If you sign up through this introductory offer, I’d like to offer you a full year of The 12% Letter for just $99.

You'll pay more than twice that for a year of The Wall Street Journal -- and they certainly won't show you how to collect extra paychecks every year.

Again, for the introductory price of $99, you'll receive 12 monthly issues of The 12% Letter… and daily email commentary and investment alerts in the S&A Digest.

You’ll also have free access to any new special reports I write about emerging opportunities in the market.

Again, this fast food real estate opportunity might not last for long. If you’re interested, I urge you to read the full details in my latest report.

Tom Dyson
Editor, The 12% Letter

P.S. Investing in the kinds of opportunities I've been telling you about today is the only way I know of to collect regular paychecks from Wall Street's richest CEOs... without doing a single minute of extra work.

How much could you collect this year? That's completely up to you. One of the best parts of getting paychecks from Wall Street is that you decide how much you're paid.

If you're even just considering a subscription to The 12% Letter, I urge you to try it today. If you sign up through this offer, you’ll get 50% off the regular subscription rate. And remember, if you decide it's not right for you, all you have to do is let me know and I'll send you a full refund. You have 6 full months to decide.

See the order form for more details by clicking below.