An exclusive group of Stansberry & Associates subscribers just safely pocketed 91% profits in real estate… through the stock market.

Today, I’ll share with you EXACTLY how we did it – with unprecedented access to some of our most expensive research.

I’ll also share the best way for you to safely make money in U.S. housing now – again, through the stock market. It’s a fantastic way to own real estate, without all the hassles of buying actual property…

[ad#Google Adsense 336×280-IA]It typically takes months to conduct a real estate transaction.

But you can buy and sell property in seconds through the stock market.

You can also get a diversified portfolio of properties for a couple thousand dollars or less.

And you know the price you can sell your property stocks for every day.

Let me show you a real example of how I made money for my paid subscribers investing in real estate through the stock market…

In July 2010, I wrote a special issue of Phase 1 Investor. This newsletter features Stansberry & Associates’ most in-depth (and most expensive) research. I occasionally contribute to Phase 1 when I come across a fantastic stock that is simply too small to share with my regular True Wealth subscribers.

I recommended shares of Alico (NASDAQ: ALCO), which owns over 100,000 acres of land in South Florida. At the time, the stock was trading around $22. That price valued Alico’s acres at only $1,600 per acre… and assumed the rest of its operations were worthless.

Back then, I believed that real estate was bottoming in Florida and that Alico was super-cheap. Here’s what I told readers…

Something I’ve been writing for months is to look for real estate deals where you can buy for $0.40-$0.50 on the dollar, and sell for $0.80 on the dollar. I’ve said to find deals that do not rely on the price of the land going up. Alico qualifies as such a deal…

At this point, I believe your downside risk is simply time. Your investment is backed up by the land. That’s why I recommend holding just three years… Sell when you’re either up 100% or three years has passed, whichever comes first.

By the end of last month, Alico had risen above $44 per share. So Phase 1 editor Frank Curzio told readers to sell Alico in his latest issue, out earlier this week.

Could Alico go higher from here? Absolutely. But there’s no need to get greedy. We bought for $0.40 on the dollar and sold for $0.80. That’s fine with me.

Where can you get a deal like Alico today?

Sean Goldsmith asked me that question on the phone this week. Sean writes the S&A Digest, an excellent daily letter for paid Stansberry subscribers. He published my answer on Tuesday.

I told Sean that my favorite opportunity is still residential real estate. Prices are still cheap, and mortgage rates are still ridiculously low. Here’s what I said:

The “V” bottom is behind us in the housing market. But there are still good values… And I think the best route for people now is Silver Bay (NYSE: SBY) [the portfolio of homes spun-off by Two Harbors]… It’s a national portfolio of homes that were all bought at low prices that are mostly paying rent already.

It’s the most direct trade… And it hasn’t run up nearly as much as anything else.

Regular readers should be familiar with this opportunity… I described it in a December DailyWealth. In short, Silver Bay owns thousands of homes, bought at distressed prices in distressed markets including Florida and Arizona. You are not paying a premium for these properties.

By buying Silver Bay, you own a national portfolio of properties that were bought at cheap prices and are currently earning rental income. I expect Silver Bay will start paying dividends out of this rent.

Between capital appreciation and dividends, you could do very well in this stock. And I believe your downside is limited, as Silver Bay simply owns the homes, debt-free.

As I’ve explained, I like owning real estate through the stock market… You can own a diversified portfolio of real estate by buying just a few shares. And you can buy and sell those shares at any time.

Silver Bay (NYSE: SBY) is the most direct way for you to play the housing recovery in the stock market. Check it out…

Good investing,

Steve

P.S. I’ve asked my publisher to “unlock” my original recommendation of Alico in the July 2010 special issue of Phase 1 Investor. You can’t miss this write-up. Access it here.

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Source: DailyWealth