30d • General discussion
Where to park your cash BEFORE you deploy it into real estate
One of the most overlooked questions in real estate investing: where does your capital live while you're waiting to deploy it?
Most people let it sit in a Savings account earning 0.05%. That's dead money. And in a market where deals take months to materialize — you're leaving serious yield on the table.
Here's the framework I use for capital that's earmarked for real estate but not yet deployed:
The 3 rules for staging capital:
① It must be liquid. You need to move fast when the right deal shows up. No CDs, no 6-month lockups.
② It must be earning yield. Even at a 3–4% APY, $100K earns ~$400/month sitting still. That's real money compounding while you wait.
③ It must be FDIC-insured. This is dry powder, not a bet. Keep it safe.
The solution I've been using and recommending is a High Yield Savings Account (HYSA). Specifically, I've been using Wealthfront's cash account — it checks every box: competitive APY, FDIC coverage up to $8M through partner banks, and same-day liquidity.
Think of a HYSA as your real estate deal fund that earns its keep while it waits. Every month your capital sits idle earning 5% is a month your acquisition costs are being partially offset — before you even close.
This is especially powerful during the due diligence phase. Instead of rushing a deal because your cash feels "stuck," you can be patient, selective, and let the right opportunity come to you — all while getting paid to wait.
If you're not already doing this, this is one of the easiest wins in your capital stack. Takes 5 minutes to set up.
I set up my account through Wealthfront — use the link below and you'll get a rate boost for the first few months (good deal while rates are still elevated):
Drop a comment if you have questions about how I structure my capital stack at different stages of a deal cycle — happy to break it down.
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Where to park your cash BEFORE you deploy it into real estate
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