Updated over 5 years ago on . Most recent reply
High-Yield Cash Account Backed by Real Estate
Disclaimer: This is not intended to be an advertisement, so I will intentionally not be naming any names! If I'm in violation of any rules, please let me know and I will delete or edit this post immediately to adhere to community guidelines.
I currently work at a start up that is creating a high-yield cash account that would allow people to park their money in an account that yields more than a typical savings account (about 3% APY). The thought process is that many of us spend a long time saving money to purchase that first (or next) investment property. If you're just tucking it away in a savings account however, it only earns a fraction of a percent in interest as long as it sits there. Since we already believe in the power of real estate to generate wealth, why not use an account where your funds are being redeployed in rental property loans in order to provide a higher return?
My question is: Would there be any interest in a product like this? And if so, what would you want to know about it before you were willing to try it out?