Savings for mortgage (20% down)

4 Replies

Hi BP Family, I hope you all are having a great week. I have to say thank you to the BP community here. There’s a ton of information and it has helped me in starting my real estate investing journey. This is my first post on BP, and I’m not sure if this is the right place to ask this question. Please bear with me. My husband and I are starting our journey in real estate investing. We have $35K that we’ve saved up in cash throughout the years. We haven’t put that money in our account yet. In regards to obtaining a mortgage, how should we put the money in the account? We know that deposits over $10K are reported to IRS. Any advice would be great. Any CPAs our there and could offer some guidance would be great or anyone that has been in the same situation. Thank you so much and I look forward to hearing from you all! P.S. we are in NJ! Best, Alicia

@Alicia Collins

Initially, I thought this was going to be as easy just depositing the money in a bank and start investing. However, upon doing research on this subject matter, I realized how much of pickle you guys have put yourself into.

Like you said, any deposit you put in a bank that is above 10K automatically gets reported to IRS and may trigger an audit. What I have come to find out as well is that if you go the other side of the spectrum and place smaller amounts of cash in the bank over a period of time, can also result in you being reported.

Hopefully we have some banking wizards here who can help you. If not, just invest out of state and hopefully find a house you can buy for 35K, and start doing a BRRR strategy with that.

As a general question, in 2018, why would anyone (who expects to interact normally with society) keep accumulating their spare $30k+ under their mattress? For safety reasons? Really?...