Bank accounts erode purchasing power. Move cash to money-market accounts earning 4.5% APY while you plan to deploy it into commercial real estate, which typically returns 15% to 35% annually through value-add strategies that boost net operating income.
Chapters
If all your money is sitting at a bank right now, you're losing money every single day. And here's what I would do with it. So having a cash position is a position, and it can be a good position if you have a plan to deploy the capital. So I do keep cash in a bank and money market accounts, not just in a checking account. Want to make sure I'm getting that 4.5% interest and that way it's still earning money while I have it before I deploy it into a deal. But you really want to have a plan for that money. So you make more than a 4% or 0% return if you, if it's sitting in the bank to use it to acquire or invest in commercial real estate assets. Whether you want to go buy your own asset, manage your own asset, whether you want to invest that capital with a trusted sponsor, syndicator or fund manager who will go put that money to work and generate returns for you. In commercial real estate, the returns are different and it's always at your own risk. Of course, it's not quite as safe as it is in a bank, but who knows how safe banks really are anyway, especially now with AI. But anyway, they'll generate returns anywhere from 15% IRR per year, so 15% return per year or up to 35% return per year, sometimes even higher than that, just depending on the investment opportunity. Or you could go out and buy your own commercial real estate assets on your own, add value to them, increase the noi, your net operating income, increase the value of the property, and then generate cash flow and wealth that way as well. So don't just leave your money sitting in a bank. Make sure it is always working for you. Because if it's sitting in the bank, all that's happening is it's just losing value.
