Announcement

Collapse
No announcement yet.

Where do you keep cash intended for RE investments?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Where do you keep cash intended for RE investments?

    We are saving for another rental property. Right now the cash savings are going straight to our Ally Savings account. There is about $10K in there earmarked for real estate, and we expect that portion to grow by 3-6k/month.

    I'm starting to wonder if this is the best place for our RE fund. On the one hand, the liquidity is great and will allow us to use the money right when we need it. On the other, it may be months or a year or two before we find a deal we want to move on, and the thought of keeping it in cash and earning nothing on it over that time frame doesn't sit great either.

    What do others do when saving for their next real estate investment?

  • #2
    Same place I keep cash for any other future investment: muni bonds.

    Comment


    • #3
      Originally posted by xraygoggles View Post
      Same place I keep cash for any other future investment: muni bonds.
      Interesting. Would you include savings for future personal residence improvements, cars, vacations, etc. in this group as well? What about your emergency fund?

      Right now all of these things are bunched into our savings account at Ally and I feel like it could be a missed opportunity.

      Comment


      • #4
        Originally posted by llmgwc View Post

        Interesting. Would you include savings for future personal residence improvements, cars, vacations, etc. in this group as well? What about your emergency fund?

        Right now all of these things are bunched into our savings account at Ally and I feel like it could be a missed opportunity.
        efund no.
        everything else is in bonds/stocks.

        Comment


        • #5
          Originally posted by Peds View Post

          efund no.
          everything else is in bonds/stocks.
          How do you pick an allocation for your short-term investing that isn't retirement?

          Comment


          • #6
            Originally posted by llmgwc View Post

            How do you pick an allocation for your short-term investing that isn't retirement?
            its more conservative. you have to be ok with a 50% loss of the stock portion and sell munis (also likely at a small loss) when you need the money.

            Comment


            • #7
              Originally posted by llmgwc View Post

              Interesting. Would you include savings for future personal residence improvements, cars, vacations, etc. in this group as well? What about your emergency fund?

              Right now all of these things are bunched into our savings account at Ally and I feel like it could be a missed opportunity.
              An emergency fund is separate than future investments. I keep both my e-fund and other cash in muni bonds, but they are for different purposes.

              You could also do what Peds suggested and put your cash for future investments (1-5 years) into a 50% muni/50% SP500 fund. more volatility, but more returns too.

              Comment


              • #8
                Originally posted by xraygoggles View Post

                An emergency fund is separate than future investments. I keep both my e-fund and other cash in muni bonds, but they are for different purposes.

                You could also do what Peds suggested and put your cash for future investments (1-5 years) into a 50% muni/50% SP500 fund. more volatility, but more returns too.
                When people do this, do they use a brand new account? Or do they keep track of their investments inside their brokerage account and just know which ones are earmarked for which purposes?

                Also, and this is a newb question, but how do you even go about purchasing a muni bond at Vanguard?

                Comment

                Working...
                X