Dallas Tx · Member since 2021 · 112 posts · 31 votes
Hey guys, so I'm saving to invest in my first home here in the next 10 months, I was thinking putting my savings in the bank doesn't do me any good, maybe for liquidity and stability
However 10 months is a while and so I was wondering.
Dearborn, MI · Member since 2019 · 124 posts · 41 votes
4y
Hate to say it because i'm in the same position, but the right answer would be in a high yield savings account. HYS are probably around 1% if you're lucky. Since you need your money in ten months, think of inflation as your cost of safety. Inflation is what it's costing you to keep your money safe.
The worst thing that could happen would be to invest in index funds and they end up dropping more than inflation will be over those ten months period, which is a real likely possibility. ( not predicting the market will go down, but its very possible!
Specialist · Denver, CO · Member since 2015 · 85 posts · 29 votes
4y
@Juan Campos this is a great question. I’ve found that a money market account works decently for temporary or short term holding. Also find someone to lend it out to. I know I’m personally always looking for small amount lenders for the rehab costs for example. There’s bound to be someone you can find to lend it out for a 6-9 month period as a second on a promissory note etc. Best of luck in your adventures!
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
4y
NNN properties are real estate investments where you buy the property that already has a tenant in place. That tenant will pay you NNN (which is taxes, maintenance, and insurance costs). This is an addition to the rents.
P.S. where do you cash out your gains of stablecoins?
Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
4y
For mor significant amounts (+ $100k) I know that both BP members and contributors, Brian Burke (Praxis Capital) and Dave Van Horn (PPR Notes) have note funds that pay 6-10% depending on your time frame. You can hold for as little as 6 months. Most of our projects will take most of that time and we can borrow from other lines of credit if need be until the fund matures.
I’ve found that for smaller amounts it doesn’t really matter. Once we get into a deal it more than makes up for a bit of lost interest.
Hey guys, so I'm saving to invest in my first home here in the next 10 months, I was thinking putting my savings in the bank doesn't do me any good, maybe for liquidity and stability
However 10 months is a while and so I was wondering.
Where do you guys park your savings?
Cd?
Bank?
Index funds ?
Thanks in advance
as you have a definite use in the near future for these funds - you will want to keep them safe and liquid ....don't look to find the highest return if this has a chance to decrease your asset amount .... in months you wont be looking at much growth at all if you want to keep it safe
Lender · Orlando · Member since 2020 · 4 posts · 1 vote
4y
I agree with whats been said. When saving stategically on a fixed income, having money in an investment account can lengthen the time to save if you experience losses.
Also, some lenders may want to see that money seasoned in a non-investment account when considering DTI.