Saving for an Investment Property

[Tom Gallagher]

How do you all go about saving money to have an ample security net before investing in a property? Do you throw your money into a basic savings account? Does anyone use mutual funds, etc. to let your money grow while you save? Just wondering what everyone thinks works best.

[John Warren]

@Tom Gallagher I use CD's through my credit union. They always have specials that let me get around 3% for one year. They also occasionally have larger specials that allow me to get the 3% on larger chunks of money. This is a challenging issue for sure. I know a lot of investors that like to borrow from their 401K's so they don't have to lose all the potential gains while waiting for a good deal to come along. I also like to use HELOC's to purchase so that I am not actually using cash, but instead am using equity I have created.