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Updated almost 5 years ago,
Where to keep cash when not tied up in a private lending deal?
I am starting out as a private lender for home flips. It may take 1-2 months to find a suitable home which meets all criteria based on my deal finders feedback. In the meantime my cash is sitting in my savings account earning .02% interest :( My question is for other private lenders, where do you keep your funds while waiting for the next deal? I am guessing where the money is stored needs to be easily liquidated in short order and not at risk of dropping in value. I do have a Fidelity account where I could move the funds. I could wire the funds directly from Fidelity when the funds are needed once a house comes available.
Looking for suggestions for where other private lenders keep their cash when waiting for disbursement. I am guessing liquidity is a key.
Thanks.