How to keep your cash away from the U.S. government...

The key to winning a competitive real estate deal...

Editor's note: We're continuing this week's Digest Premium guest insight from Pensam Capital cofounder Michael Stein. Yesterday, Michael explained how his real estate investment firm generates 8%-9% returns. Today, he talks about the importance of being selective...

 As I (Michael) explained yesterday, managing the capital structure of our real estate deals is the "science" behind generating safe, healthy returns in the current low-interest-rate environment...

But the "art" of the business is really in the operations. I can't stress enough that it's a nickel-and-dime business.

What happens after we buy the deal is the most meaningful part of our "value-add." And consequently, we built up an infrastructure from construction, asset management, design, and the ability to execute.

  In addition to having a good capital structure and watching our operating expenses, it's also important to be selective in today's market.

It's a very competitive market today. There is a lot of capital chasing multifamily housing. The way Pensam Capital has been able to separate ourselves from our competition is through our credibility and the certainty of closure. That's how we win deals.

On every good deal out there, there may be several groups chasing it. You have to be selective in what you pursue. We have 100 or more offerings a month, and from there, we comb through a lot of stuff to get to the one property we really want to take a hard run at.

– Michael Stein

The key to winning a competitive real estate deal...

In today's Digest Premium, featured guest Michael Stein explains how the real estate investment firm he cofounded is able to separate itself from its competition and close on its deals.

To continue reading, scroll down or click here.

Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)

As of 10/21/2013

Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any S&A publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.

Stansberry & Associates Hall of Fame
(Top 10 all-time, highest-returning closed positions across all S&A portfolios)

The key to winning a competitive real estate deal...

In today's Digest Premium, featured guest Michael Stein explains how the real estate investment firm he cofounded is able to separate itself from its competition and close on its deals.

To subscribe to Digest Premium and access today's analysis risk-free, click here.

How to keep your cash away from the U.S. government... One of Dan Ferris' favorite dirt-cheap stocks... Reader feedback: Making money trading options...

 "When you size up our currency, the big picture is – well, horrible."

In his latest issue of True Wealth, Steve Sjuggerud showed readers how hard it is to hold dollars these days...

"We are the largest debtor nation – and we're getting deeper into debt every single day. The U.S. has also been on a money-printing binge to pay its debts and stimulate the economy. Both of these things are terrible for the U.S. dollar in the long run."

 These trends are driving us toward what Porter calls the "End of America" – when the dollar loses its status as the world's reserve currency.

And one of Porter's top recommendations is to move some cash beyond the U.S. government's reach...

 Overseas transfers just got harder to do...

Chase Bank recently sent a letter to customers notifying them that they're banning all international wire transfers in business accounts, starting next month.

Chase is also capping "cash activity" – deposits and withdrawals – at $50,000 per statement cycle.

Other major banks are likely to follow suit.

You can find more news on Chase's announcement in our news aggregator, The Daily Crux.

 If you're looking for a place outside of the U.S. dollar to hold cash, Steve just shared an interesting idea...

Steve wrote his PhD dissertation on how currencies move... He can boil down the most important idea in one sentence: Money flows where it's treated best.

And according to Steve, the U.S. dollar is not treating money well these days...

Steve's answer might surprise you: It's the Chinese renminbi.

 In short, Steve says, "China's currency is deeply undervalued. It would have to roughly double just to get to fair value with the rest of the world." It's also paying interest, unlike the U.S. dollar.

Steve found a safe way to buy the renminbi, collect 2.6%-3.3% a year, and benefit as the Chinese currency appreciates against the dollar.

Out of fairness to Steve's True Wealth subscribers, we can't say much more about exactly how his subscribers are able to own the renminbi with minimal risk... But he did add full details on this idea to his True Wealth currency "seminar."

In his presentation, he details how currency fluctuations work and their impact on every American. He also reveals several unique trades – besides the renminbi – that will allow you to safely build a huge amount of wealth in the midst of currency fluctuations... including what he's calling "The Greatest Currency Trade of the Next 10 Years."

While Steve's recommended trades are related to currency movements, none of them involve risky, leveraged currency bets, like most people think of when they hear "currency trade." These trades don't involve traditional currency trades at all (and all but one can be easily made in a conventional brokerage account).

We're at a major crossroads in the currency markets. Our government is in a "no way out" situation with its finances. You can't afford to sit on your hands and watch your purchasing power decline.

Do yourself and your family a favor: Take us up on our 100% money-back guarantee. Try True Wealth for four months. Read through Steve's report a few times. (It will take you less than 30 minutes.) If you don't think it's the most comprehensive and well-written report on how to protect yourself and your family from the coming destruction of the U.S. dollar, we'll refund every penny.

You can sign up for True Wealth and the special report right here. (There's no long video to watch. You'll be able to access the report in less than 10 minutes.)

 Yesterday, Dan Ferris updated his Extreme Value readers on an iconic American tech stock...

IBM reported earnings last week... They came in under analyst expectations. Shares fell more than 6% the next day and hit a two-year low.

But as Dan points out, analyst expectations don't have any bearing on the long-term health of the business...

Dan figures the stock should be 30% higher than it is today... and he rates shares a "buy."

 Below, you'll find the next installment of our "Three Minute Trading Expert" video series...

Each installment lasts about three minutes... and it teaches an important investment or trading lesson. It's part of our ongoing efforts to help readers (and now "watchers") learn timeless wealth ideas. Let us know what you think – and what other videos you'd like to see – right here.

 New 52-week highs (as of 10/21/13): Becton-Dickinson (BDX), Blackstone Group (BX), Chubb (CB), Chicago Bridge & Iron (CBI), Devon Energy (DVN), EnerSys (ENS), Energy Transfer Equity (ETE), iShares Germany Fund (EWG), Integrated Device Technology (IDTI), short position in J.C. Penney (JCP), KBR (KBR), Kohlberg Kravis Roberts (KKR), ProShares Ultra KBW Regional Banking Fund (KRU), Laredo Petroleum (LPI), 3M (MMM), National Fuel Gas (NFG), Sturm, Ruger (RGR), ProShares Ultra Technology Fund (ROM), RPM International (RPM), Sanchez Energy (SN), ProShares Ultra S&P 500 Fund (SSO), Steel Dynamics (STLD), Constellation Brands (STZ), and Targa Resources (TRGP).

 We had a couple folks write in to report that they'd received a letter from Chase restricting their ability to wire funds internationally. Thanks for that... and let us know if you see any other capital restrictions from your banks or brokerages.

We also saw a couple notes we couldn't resist publishing... We're suckers for positive feedback. Of course, the negative notes are a lot more fun. As always, send anything you have for us to feedback@stansberryresearch.com.

 "I just wanted to say thank you for all the hard work you do. I'm a novice investor and I'm 26 years old, I'm breaking your rules of waiting and saving my money before investing since I saved a lot of cash bar tending from the time I was 21. This year I earned a few thousand dollars following your put and call options selling strategies on a few different businesses such as Intel, Microsoft and a few others. I've even closed out of a few positions early as well (and you're right, if we stuck with trailing losses we could have earned more!) The calendar year isn't even over yet and I have two more months to realize even more gains!

"With the profits I have gained I decided to join the Private Wealth Alliance through a promotion I received in the mail. I'm pumped to have all the goodies and have even more access to genius investing ideas. Lucky for me I have the whole rest of my life to learn timeless investing wisdom to benefit my family and its future generations – even though the economic and social future is quite dire... Thanks for all you do. And to all you folks out there who are on the fence about taking S&A's advice; not every idea is a winner (unless you're Doc Eifrig), but you won't learn this stuff in any business school! Take a chance, learn the strategies and profit!" – Paid-up subscriber J.C.

 "First, the quotable quote for advertising purposes (and your personal feeling of altruistic satisfaction): Your research is terrific and makes great reading – informative, comprehensive, entertaining, and astute – and has resulted in many profitable transactions. But in the larger scheme of things, the SINGLE best investment I have EVER made, or probably will make, is my Alliance membership itself, roughly a 15-bagger over a 4 to 5 year period. Without the in-depth analysis you provide, I likely would not have made many of those investments, or even been aware of those opportunities.

"Second, an observation about your options strategies: I do understand the mechanistic way in which you must calculate percentage gains (or losses) through the monetary margin requirements, but for someone like me who keeps 5- 10% of their account in cash anyway, these strategies are like free, found money, to wit:

"So far just this year, I have pocketed about $12,000 from options trading." – Paid-up subscriber Dave R.

Regards,

Amber Lee Mason and Brian Hunt

Delray Beach, Florida

October 22, 2013