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Updated almost 13 years ago on . Most recent reply

User Stats

6
Posts
5
Votes
Michael Willis
  • Appraiser
  • San Diego, CA
5
Votes |
6
Posts

Saving for a down payment/preserving capital

Michael Willis
  • Appraiser
  • San Diego, CA
Posted

Hello all. I am new to this community and I am trying to soak up all the great information and ideas that this site provides. My question is specifically regarding saving for a down payment. I am trying to save as much as I can while I am looking for my first deal. I wanted to know where does everyone stash their down payments. Mine is currently in a "high yield" savings account but that only pay .075%. I was wondering if opening up a mutual fund/index fund or a CD for my downpayment may be a better route. Obviously there is going to be more risk when opening up a mutual/index fund as opposed to a normal savings account. The last couple months have been great for my retirement funds and I wish my real estate down payment had similar gains. I am just curious how others have done it. Thanks in advance for any replies or insight.

Most Popular Reply

User Stats

1,573
Posts
928
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David Beard
  • Investor
  • Cincinnati, OH
928
Votes |
1,573
Posts
David Beard
  • Investor
  • Cincinnati, OH
Replied

Place the funds where it will leverage a relationship. You need to identify the couple of banks that are investor-friendly in your area, and keep the funds and other accounts there. This will help you down the road far more than the piddly little extra interest.

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