Stack Funding in Hawaii | Swift Deal Funding
Stack (Morby Method) funding in Hawaii
Stack funding supplies the cash needed at the closing table when a seller carry-back note is covering the buyer’s down payment but escrow still requires real funds to close. We wire that cash; the recorded second-position note repays us plus a flat 2.5%, often shortly after recording.
Hawaii is fertile ground for this. Many properties have been held in the same family for decades and carry enormous equity, so sellers are frequently open to carrying paper rather than taking an all-cash payout — the foundation of a Morby Method deal. Activity centers on Honolulu, with creative-finance deals also turning up on Maui and Hawaii Island. Funded amounts here typically run $15,000–$50,000, with capacity up to $10 million per transaction.
How a Stack deal closes in Hawaii
Hawaii is a dry-funding state, so escrow disburses after recording, not at signing. Critically, Hawaii also runs a dual recording system: most property records through the Bureau of Conveyances, but a significant amount of land — especially on Oahu — is Land Court (Torrens) registered and records separately. Your second-position carry-back note must be recorded in whichever system holds the parcel, and Land Court can run on a slower clock.
Hawaii closes through escrow companies, which keeps the note-recording coordination in one place. We require written confirmation from escrow that the carry-back note will record in second position as agreed. Local note: ask your escrow officer early whether the parcel is Bureau of Conveyances or Land Court, since that determines your recording — and repayment — timeline.
Pricing
Flat 2.5% of the funded amount, nothing upfront, collected on the closing statement:
| Funded amount | Fee |
|---|---|
| $50,000 | $1,250 |
| $100,000 | $2,500 |
| $500,000 | $12,500 |
| Up to $10,000,000 | $250,000 |
What you’ll need
- Executed purchase contract with seller-financing terms
- A carry-back amount large enough to cover the down payment plus closing costs
- A Hawaii escrow company ready to record the seller-carry note in second position
- Written confirmation from escrow that the note will record as agreed (Bureau of Conveyances or Land Court)
A typical Hawaii Stack scenario
A longtime owner of a Kaneohe home with deep equity agrees to sell subject-to and carry back a note covering the $60,000 down payment. Escrow still needs cash in hand to close. Stack wires the $60,000; escrow records the carry-back note in second position. Because the parcel is Bureau of Conveyances land, recording confirms the same day, and the note repays our $60,000 plus the 2.5% fee ($1,500). You acquire a high-equity Oahu property with none of your own cash at the table.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate with your escrow company on the carry-back recording.
Frequently Asked Questions
Where does the second-position note get recorded in Hawaii? +
With the Bureau of Conveyances, Hawaii's centralized statewide recording office, or in the Land Court system for registered (Torrens) land. Hawaii has a dual recording structure, and a meaningful share of Oahu property sits in Land Court, which records on its own schedule. Your escrow company will know which system your parcel falls under. We require written confirmation that the carry-back note can be recorded in second position before we fund, so verify the recording path with escrow early.
How does dry funding affect Stack repayment in Hawaii? +
Hawaii disburses after recording, so our repayment from the recorded second-position note settles once the Bureau of Conveyances or Land Court confirms the recording rather than at the table. We provide the cash needed to close; escrow records the seller-carry note and repays our funds plus the flat 2.5% from that note. On Oahu this is often same-day after recording confirms; Land Court parcels can take longer, so confirm the timeline with your escrow officer.
What kinds of Hawaii deals use Stack funding? +
Creative-finance deals where the seller carries paper. That includes subject-to acquisitions, owner-financed purchases, and seller-carry structures where the carry-back note covers the down payment but escrow still needs real cash to close. Hawaii's high equity positions, many long-held family properties carry decades of appreciation, make sellers here unusually willing to carry a note, which is exactly the setup Stack is built for.
Apply for Stack Funding in Hawaii
Submit your application online — same-day decisions for complete files before 2 PM Eastern.