Hi All--I currently have one six plex and it took all of our cash to purchase it. We now have a nice little emergency fund for the property and want to start investing the additional money so it can get some returns. We have about 5k we'd like to invest, and we'd like it to be accessible so we can use the money if another deal comes by, since the ultimate goal is to use this money for RE investments. We just don't want it sitting in a bank acct.
My Q: Any advice on which platforms are the best for small amounts of cash, and offer short terms (such as 1 yr or less)? I've considered fundrise and lending club, but would love to hear everyone's experiences.
I am not an accredited investor, which I'm sure is obvious, but thought I'd clarify anyway.
The peer-to-peer lending platforms such as Lending Club and Prosper are going to be very good options for small invested amounts of cash invested over a short term.
If you need access to your money for a deal, you maybe limited to a bank account. But if you use one might as one be with a bank that pays decent interest like Ally bank or Marcus by Goldman. I'm sure there are other ones out there. Good luck!
@Jennifer Jackson personally, I’ve received and heard more horror stories using p2p lending sites. Accepting complete losses on various loans seems to be more of a norm vs. irregularities with any sort of volume.
I'd look at CIT bank savings short term for 2.45% APR while you find a place to park it. This way you have full access to your money.
@Jennifer Jackson I have both fundrise and realty mogul in my SD IRA. Both are great, pay dividends and sent regular updates.
You can also look into groundfloor.com, a P2P site exclusively for RE. You could even buy stocks of home builders or home related companies.