Investor · Aldie, VA · Member since 2015 · 28 posts · 13 votes
Hello,
I'm getting closer to purchasing my first investment property. I absolutely hate the idea of having money sitting in a nearly worthless savings account or CD, though I understand some must be immediately available.
I read a blog post on Financial Samauri blog (http://www.financialsamurai.com/ranking-the-best-passive-income-investments/) the other day that made be consider using P2P lending rather than my go-to Vanguard index funds to store my reserves because the results are far more predictable than that market. Note the nearly 2% swing in the market today.
I'm considering moving perhaps 75% of my reserves to a P2P lending company (probably Lending Club). Although this is a long-term commitment, they do have liquidation options should it be necessary. Has anyone done something like this or have any thoughts on the idea? Thanks!
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
11y
As long as it is someone liquid I like the idea. When flash funding started my friends and family jumped in loaning transaction funding. It was definitely the way to go, each deal was $500 dollars. 2% fee and the money was out of our hands for only a day or two. We were doing 2 a week so getting a 200% return on our funds for the year.
Now days I maintain a small savings account for emergency funds, when I get the statement each month I call myself an idiot and then think gee if I keep it there I can double my money in 72 years. I'm sure that account will be marked closed by May 1st.