Best places to invest cash between deals

3 Replies

I have been trying to find places to put extra cash between deals, while building reserves, or when I have a large rehab budget but won't need the cash for a few months. Stocks are out since I don't want to have to sell if the market is down and I need the cash soon. There has to be something better than leaving the money in a money market or savings account making 0.50% interest. I don't have a HELOC on anything currently. Any suggestions are greatly appreciated

This has to be the toughest time for rates I can remember. Liquid and risk-free these days? You are most likely looking at 1% on it using an online savings account. I'm sure you are aware, the traditional laddering of treasuries won't yield crap right now. 

Try CIT, VIO, or Marcus, all are about 1%+ if you want a general savings account. Sofi was great, till they went down to .2%. These will continue to trickle down though as rates remain at record lows. 

Diversify into gold, silver, mining stocks of same, & keep track of the price of both metals, ready to sell, if both go down in prices, so you don't loose too much when you sell. But both are likely to continue to climb in 2020 & into 2021, as long as the fear is up, with the COVID-19 virus, & you might realize some profit in doing so. Also, for more diversification, buy a mutual fund in bonds, of nations which are not likely to default on making pay outs on the bonds said nations issue. And bonds are good, although they don't pay much return, in that at least you can get your money back, you paid in to buy bonds. Of course, these are places to stash cash, in a short term time frame, of say 6 months. And after 6 months; then re-think where you next want to put cash, that might offer advantages. The thing about this COVID-19 virus, is that there is no certainity that remedies will be found for it, even in 2021, despite the best efforts of scientists in laboratories. So the rising gold & silver prices could last into 2021. (I wish the U.S. will pursue a testing-tracing regime, as a stop-gap against this virus. South Korea has this going, with good results, keeping South Korea from going into an health care crisis.)

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