Deciding what is the best way to use the proceeds from the sale of your home ultimately depends on your goals and how far you are from retirement. Put it in a savings account. Real estate crowdsourcing allows you to be more flexible in your real estate investments. You can invest beyond where you live to get the best possible return.
Reinvesting profits in real estate crowdfunding after a home sale is good for diversification. In addition, you can go back a lot of your time. If you plan to buy another property with the proceeds of your home, Carter says be prepared to deposit money up front. You may need 3.5-20% of the sale price as a down payment for a mortgage, depending on the loan you choose.
Money market mutual funds offer you the best in the world's security and reasonable rates of return. While money market funds are not insured by the Federal Deposit Insurance Corporation (FDIC), they are considered as secure as bank accounts. Only one money market fund has lost retail shareholder capital in the history of the fund's business, and the amount lost was less than 1 percent. There have been hundreds of bank failures over the decades in which depositors have lost money above the FDIC insured limits on those accounts.
Experts generally recommend staying in a home for at least this long before selling it to avoid losing money on investment. If you're not ready to buy back, you'll need a strategy to help you manage your money after selling a home.