Stack Funding in Kentucky | Swift Deal Funding
Stack (Morby Method) Funding in Kentucky
Stack funding supplies the cash a Kentucky closing needs when a seller carry-back note covers the buyer’s down payment on paper but the closing still requires real funds in escrow to record. We wire the cash to the table; the recorded seller-carry second note repays our principal plus a flat 2.5% — often same-day through the closing attorney. Typical funded amounts here run $20,000–$70,000, with capacity to $10 million.
Stack is a creative-finance tool, so it tracks Kentucky’s seller-finance and subject-to activity rather than its straight assignment volume. Louisville’s equity-rich older housing stock and Lexington’s growing investor base produce the motivated sellers who’ll carry a note, and Kentucky’s moderate prices keep carry-back structures workable for buyers.
How a Stack deal closes in Kentucky
Kentucky is an attorney-closing state, so the closing attorney conducts settlement and records the documents. The sequence: the seller agrees to a carry-back covering down payment plus costs; we wire the cash needed at the table; the attorney executes the closing and records the carry-back note in second position; that recorded note repays us plus 2.5%, typically same-day.
Kentucky’s wet-funding rule is why Stack exists for this market — a paper carry-back doesn’t put dollars in escrow, but Kentucky demands funds before recording. Our cash bridges that. Seller-financing and subject-to deals carry due-on-sale and disclosure considerations worth running past counsel. Confirm with your closing attorney that the second note records as agreed.
Pricing for Stack in Kentucky
Flat 2.5% of the funded amount, collected at close. No upfront fees.
| Funded Amount | Fee |
|---|---|
| $50,000 | $1,250 |
| $100,000 | $2,500 |
| $500,000 | $12,500 |
| Up to $10,000,000 | $250,000 |
Stack Funding Requirements
- Executed purchase contract with seller-financing terms
- Seller carry-back ≥ required down payment + closing costs
- Kentucky closing attorney ready to record the second-position note immediately after closing
- Written confirmation from the attorney that the note will record as agreed
A typical Kentucky Stack scenario
A retiring landlord in Louisville’s Germantown will carry $35,000 to spread out a capital-gains hit. Your buyer’s lender requires that $35,000 shown as real down-payment funds at closing. Kentucky won’t record dry, so Stack wires $35,000 to the closing attorney; the deal records, the carry-back note records in second position, and that note repays us $35,875 — your buyer closes without cash they didn’t have.
Apply for Stack Funding in Kentucky
Submit your purchase contract and seller-financing terms online. We coordinate the carry-back recording directly with your Kentucky closing attorney.
Frequently Asked Questions
Can a Kentucky closing attorney record the seller-carry second note? +
Yes — and in Kentucky it's the attorney conducting the closing who handles it. Kentucky is an attorney-closing state, so the closing attorney executes settlement and records the carry-back note in second position. We need written confirmation from that attorney that the second note will record immediately after closing, because the recorded note is what repays our funds. Confirm your Louisville or Lexington attorney is comfortable with the creative-finance structure before scheduling.
Why does wet funding matter for a Kentucky Stack deal? +
Even when a seller carry-back covers the buyer's down payment on paper, Kentucky's wet-funding rule means real money must be in the attorney's escrow before the deed records. That gap is what Stack fills: we wire the cash needed at the table so the closing can fund and record, then the recorded second note repays us plus 2.5% — usually same-day through the attorney. A paper-only down payment can stall a wet-state closing without it.
Do Kentucky seller-finance and subject-to deals need special review? +
Kentucky has no wholesaler-licensing statute, but seller-financing and subject-to structures carry due-on-sale and disclosure considerations of their own. Have the carry-back terms, payoff handling, and any existing-loan disclosures reviewed by a Kentucky real estate attorney — often the same attorney closing the deal. We fund the cash-at-close piece; the structuring and disclosure of the seller financing are between you, the seller, and your counsel.
Apply for Stack Funding in Kentucky
Submit your application online — same-day decisions for complete files before 2 PM Eastern.