Stack Funding in Los Angeles, CA | Swift Deal Funding
Stack (Morby Method) Funding in Los Angeles, CA
Stack funding provides the cash needed at the closing table when a seller carry-back note covers the buyer’s down payment but escrow still requires real funds to close. The recorded second-position note repays our funds plus a flat 2.5% fee — often the same business day. LA Stack deals commonly run $100,000–$400,000 funded, with capacity to $10,000,000 per transaction.
Stack fits Los Angeles’s creative-finance deals. With a median around $1,000,000 and decades of price appreciation, many long-term owners — particularly on small multifamily in Highland Park and Boyle Heights and single-family in Sylmar — hold enormous equity and will carry paper rather than take a full cash payout for tax or income reasons. Subject-to and owner-finance structures appear regularly, and Stack covers the working capital escrow needs to record — with California’s dry-funding model setting the timing.
How a Stack deal closes in Los Angeles (dry-funding, record-first)
California is a dry-funding, escrow state, so escrow records before disbursing — nothing releases at signing. The sequence:
- The deal is structured with a seller carry-back covering down payment + closing costs.
- We wire the cash needed to close into escrow.
- The deal signs; the LA County Recorder records the deed, then the carry-back note in second position.
- Once recording confirms, escrow disburses and the recorded note repays our funds plus 2.5%.
The recorded second-position note is the repayment instrument, so recording is mandatory — and because California disburses post-recording, your escrow company’s recording cutoff determines whether it clears same day.
Pricing
Flat 2.5% of the funded amount, collected on the settlement statement. No upfront fees.
| Funded Amount | Fee |
|---|---|
| $100,000 | $2,500 |
| $250,000 | $6,250 |
| $500,000 | $12,500 |
| Up to $10,000,000 | $250,000 |
What you’ll need
- Executed purchase contract with seller-financing terms
- Seller carry-back ≥ required down payment + closing costs
- An LA escrow company prepared to record the second-position note immediately after closing
- Written confirmation from escrow that the note will be recorded as agreed
No credit check, income verification, or tax returns; California has no wholesaler-licensing statute.
A typical Los Angeles Stack scenario
You structure an owner-finance deal on a Boyle Heights fourplex where the seller carries a $180,000 note covering the down payment and costs, but escrow still needs $150,000 of real funds to close. We wire the $150,000 into your LA escrow company. The deal signs; the LA County Recorder records the deed and your second-position carry-back note. Once recording clears, escrow disburses and the recorded note repays our $150,000 plus the $3,750 fee — same business day when the file is in early.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate with your LA escrow company on the carry-back recording.
Frequently Asked Questions
How does Stack funding handle California's record-first rule in Los Angeles? +
Stack supplies the cash needed at closing when a seller carry-back covers the buyer's down payment but escrow still needs real funds to close. California is a dry-funding, escrow state, so the LA escrow company records before disbursing. We wire the closing cash; the LA County Recorder records the deed and the second-position carry-back note, then escrow disburses. The recorded second note repays our funds plus the flat 2.5% — typically the same business day once recording confirms. Confirm the recording sequence with your escrow company.
Does the carry-back note have to record for Stack in Los Angeles? +
Yes. The structure depends on the second-position carry-back note recording with the LA County Recorder. In California's record-first model, escrow records the deed first, then the carry-back note in second position, then disburses. That recorded note is our repayment instrument, so your LA escrow company must confirm in writing they'll record it as agreed before we fund — that written confirmation is a core requirement of every Stack deal. SoCal typically runs this through an independent escrow company.
When is Stack the right call instead of Echo in Los Angeles? +
Use Stack when seller financing is built into the deal — a seller carrying a note rather than taking full cash, which shows up on long-held LA property where owners have huge equity and prefer payments over a lump sum. The carry-back must cover the down payment plus closing costs. Use Echo when repayment comes from a sizable assignment fee with no seller note. Both front cash at the LA close; Stack is repaid by the recorded second note, Echo from seller proceeds.
Apply for Stack Funding in Los Angeles, CA
Submit your application online — same-day decisions for complete files before 2 PM Eastern.