Saving for a down payment/preserving capital

[Michael Willis]

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.

[David Beard]

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.