Where are your funds kept prior to an investment?

[Kurt Granroth]

A common way to kick-start a real estate investment is to wire the funds to wherever they need to be.  Maybe it's $25k, or $50k, or $100k.  It's money that you have in an account that is then transferred to somewhere else.

My question is: where do you keep that money prior to the time it needs to be wired?

In my case, the money tends to be either in very liquid form in simple savings accounts (up to maybe $50k for a few months) or it's in the stock market and I simply sell some shares in advance of the cash demand; transfer that to a bank account; and transfer it from there.

It seems like there should be a better way of handling these funds in the short term.

So yeah... you have a funding call in two weeks (or three months) -- where is that money now?

[Kurt Granroth]

Quote from @Jacob Rosenkranz:

I am currently setting aside cash in a savings account, with the rest of the required capital likely coming in the form of a margin loan from my taxable brokerage account so that I don't have to sell the stocks. What are you currently doing? I see this was posted several years ago. 

I've ended up mostly just keeping the "pending" cash in a saving account. My original question was hinged on the idea that the money would be sitting for a good amount of time and thus not earning on it would be noticeable... but as it's turned out, I have a big enough pipeline of potential deals that the cash isn't sitting for long enough to make an appreciable difference. And I realize that I like the flexibility of having purely liquid cash. That definitely helped when I invested in one deal the last week of 2021 -- if it was in stocks, there would have been no way of funding the account until after the new year and I would have missed out on 2021's passive losses.